Praesidian invests in lighting systems acquisition

New York-based Praesidian’s investment in Epic Production Technologies is the firm's second recent deal this month as demand for mezzanine capital rises.

Mezzanine debt provider Praesidian Capital Investors has partnered with Miami-based private equity firm HIG Capital to invest $12 million (€8.2 million) of senior subordinated debt in Epic Production Technologies.

The $12 million in capital comes from a $246 million fund that New York-based Praesidian closed in 2007. The fund is targeting middle market companies with investment deals focused on the $5 million to $15 million range, according to managing director Neil Marks.

Praesidian this year has provided $10 million in senior debt financing to consulting firm Resolution Economics, $8.5 million to welding equipment manufacturer Arc Welding, and $4.5 million to assist the acquisition of DisplayWorks and Marketcraft by JPB Enterprises. The mezzanine deal with Epic Productions is the firm’s second in September, along with an earlier $10 million investment in Granite Seed Company.

Marks said Praesidian is meeting its investment targets for the year and seeing a steady flow of opportunities despite market turbulence. With banks becoming more conservative, many mezzanine debt providers are seeing more demand from private equity firms looking to get deals done.

Epic is the result of a merger between two leading providers of lighting systems for concerts, theater productions, and corporate events: Q1 Production Technologies and Ed and Ted’s Excellent Lighting. Q1 has supported several Broadway productions as well as the XV Winter Olympics, while Ed and Ted’s provides services for clients such as Bon Jovi and Blue Man Group.

HIG Capital operates a family of funds covering private equity, distressed debt, venture capital and public equities, with over $7.5 billion in capital under management. Since its founding it has also invested in more than 200 companies worldwide.