Gordon Brothers shakes up management

The firm has hired former Sun Capital executive Gary Talarico (pictured) to replace Michael Frieze as CEO. Talarico has experience in Tokyo and will help the firm expand in Japan.

Boston-headquartered Gordon Brothers Group, an advisory, restructuring and investment firm has appointed former Sun Capital Partners managing director Gary Talarico as president and chief executive officer.

Talarico replaces Michael Frieze, who has been with the firm since 1966 and is the grandson of Gordon Brothers co-founder Jacob Louis. Frieze will assume the role of chairman of the board of directors.

Talarico was most recently managing partner of advisory boutique Cora Street Partners, prior to which he was a managing director at Sun Capital Partners in New York and Tokyo from 2004 to 2009. Prior to Sun, he worked as a managing director of Deutsche Bank Group for five years in Tokyo.

Talarico said in an email his “immediate focus will be on continuing to integrate Gordon Brothers Group’s capital and operating solutions on a global basis,” adding that the firm has “many opportunities to grow our businesses in the US, but even more opportunity to expand in Europe and Japan”.

Talarico’s experience in Japan makes him a good fit for the firm, which in 2006 established Gordon Brothers Japan, a joint venture with the Development Bank of Japan. Gordon Brothers Japan operates in the inventory appraisal space, working alongside asset-based lenders to develop the asset-based lending market in Japan.

Frieze said in a statement that Talarico would also help Gordon Brothers with “the recruitment of top new talent, which will help us strengthen our current business portfolio and expand into new areas that complement our businesses and provide additional services to our clients and transaction partners”.

GB Merchant Partners, the private equity arm of Gordon Brothers, makes majority and minority investments in mid-market companies in the consumer products and retail sectors. The group’s most recent announced acquisition was an investment of undisclosed size in fashion retailer Ashley Stewart last November.

GB Merchant Partners invests from the 1903 Equity Fund, a 2007 vintage fund with $275 million of committed capital. The group typically invests in partnership with management teams to finance management buy-outs, fund growth, or facilitate restructurings or turnarounds.