Swander Pace is continuing its investment with Captek Softgel International, a North American manufacturer of vitamin, mineral and supplement soft gels, raising $417.1 million for its first continuation fund.
Morgan Stanley was the lead investor in the fund and was joined by Rabo Investments, the investment arm of Rabobank, as well as Swander Pace reinvesting LPs and GPs.
The new continuation fund acquired the Captek stake from Swander Pace Capital Fund V and Swander Pace Capital Fund VI. Investors in each of the funds had the opportunity to roll over their stake and to continue to participate as an investor.
Officials added that the new fund includes substantial capital investment to drive organic growth initiatives and strategic acquisitions for Captek in the future.
“Captek is a highly differentiated and strategically important asset,” said Corby Reese, managing director at Swander Pace Capital, in a statement. “Since this investment in 2015, we have been able to drive considerable value for our investors with the strong leadership and great execution of our team members.”
Captek was acquired by the $1.5 billion private equity firm in December 2015, followed by and additional investment with the acquisition of J&D Labs in July 2017.
“We are excited to continue to partner with Swander Pace Capital on this next phase of growth,” said Captek CEO Randy Bridges in a statement. “Our focus on operational excellence, innovation and new acquisition potential makes this a very exciting time for Captek, and our team is ready for this next chapter.
Reese added that the performance of Captek has been impressive and that the company has a strong financial and strategic outlook ahead, which is why Swander Pace chose to create a new vehicle to participate in the next stage of growth.
Morgan Stanly Private Markets Secondaries, a team that oversees GP-led continue vehicle transactions at Morgan Stanley Investment Management, collaborated on the transaction.
Swander Pace Capital leadership in the consumer space and the talented management team at Captek made the continuation vehicle transaction compelling, according to Yash Gupta, partner at Morgan Stanley Private Markets Secondaries.
Going forward, Swander Pace will continue to seek acquisition opportunities for Captek in the Vitamins, Mineral and Supplements category to leverage the firm’s experience and expertise in the space.
“Captek further exemplifies our depth and experience investing in the Health and Wellness sector, including businesses such as Renew Life, Swanson Health Products, Clarion Brands, and Reliance. Captek enjoys a unique and innovative position in the marketplace, and we look forward to partnering with the team to execute our playbook to drive growth,” said Alex Litt, senior vice president at Swander Pace Capital.
