Page 121 - TACC 2023 Program

Paceline Equity Partners, LLC (“Paceline”) is a registered
investment adviser formed in 2018 to pursue value-
oriented, opportunistic, and special situations investments
across asset classes

Shared Background Middle Market Focus
> Six founding partners who have a 15-year history of working > Paceline is actively seeking new investments that meet the
together, previously at a large, institutionalized private following criteria:
equity firm ‒ Equity check of $30-$60mm, with flexibility for more
> Paceline now has a professional team of 28, including 17 ‒ $0-$50mm of EBITDA at closing, with flexibility for more
investment professionals, and expectation to grow
‒ Special situation transactions where asset or market-level
> Headquartered in Dallas, Texas complexity exists
Deep Experience
> Paceline plays a significant role in helping unlock value by:
> The founding partners have originated and managed over ‒ Collaborating with management to set strategic goals and
$20bn of deployed capital (including at a prior firm) across priorities
hundreds of transactions
‒ Developing and implementing operational improvements
> Team members have led origination, underwriting and asset ‒ Evaluating and consummating M&A opportunities
management across multiple platforms
Broad Capabilities & Unique Strategy > Industry agnostic, but focus areas include Industrials
(manufacturing / distribution / services), Building Products,
> Execute an opportunistic strategy across various asset classes
to optimize returns in all market environments Chemicals, Specialty Leasing, Transportation, and Automotive
‒ Platform spans Private Equity, Credit and Real Estate Characteristics of a Paceline Transaction
‒ Deep experience across a wide range of industries
> Source dislocated opportunities by embracing complexity and Asset intensity
volatility where capital is prevented from flowing efficiently Complexity Liquidity
> Active asset management that emphasizes value creation Out of favor or voids
and an accelerated return of capital while also seeking to niche industries
reduce risk

Private Equity Corporate Credit Real Assets
> Value-focused control buyouts or > Broad investment focus on complex, > Real Estate Loans
corporate carve-outs where asset idiosyncratic and/or misunderstood – Acquisition of dislocated loans with
or market-level complexity exists credits – ability to convert to equity ownership
Target Opportunity Set – Turnaround candidates > Distressed debt > Real Estate
–
–
Non-core divisions of a larger
Acquisition of single credits or
Provider of mezzanine or traditional
corporation
portfolios of performing and non-
debt financing
performing corporate credits
–
Unnatural owners, such as former
–
Direct equity or portfolio acquisitions
–
lenders
Credits with lower lien-priority
–
Special situations
–
–
Near-term solvency risk and ability
Owners seeking liquidity
to convert to equity ownership
> – Joint venture structures > Structured credit: mezzanine debt > Structured Credit
Capital partner to management teams
to grow the business and/or unlock investments with equity conversion
value from current operations and/or warrants
Select Fund I Investments manufacturer Railway equipment Provider of data and data-driven 1 commercial retail property
Flooring
leasing
marketing services
8 hotel properties
Manufacturer of pipe connection
and fitting devices
Spencer Hart - Vice President Paul Mackey - Vice President
sdhart@pacelineequity.com pmackey@pacelineequity.com
Phone: 469.271.1894 Phone: 469.921.8720