Current Investments
JDog Junk Removal (Industry - Franchise/Multi-Unit)
JDog Junk Removal (www.jdogjunkremoval.com) is a leading franchisor of the JDog junk removal system. JDog franchisees provide residential and commercial junk removal and hauling services in seven states across the U.S. The business is unique in that franchises are offered exclusively to U.S. military veterans and their family members – a sustainable competitive advantage that the management team is confident will enable the company, over time, to dominate the junk removal business. This is based on the notion that Americans will support a veteran owned business when offered the alternative. Junk removal businesses are generally very profitable and easy to operate, and thus provide an excellent means for veterans to realize the American dream of owning a business. The JDog brand is the only military veteran brand today – the company leverages military themed techniques, like the use of camouflage wrapped hummers for brand awareness, and promotes the values of Trust, Integrity & Respect in dealing with customers.
ACCT Holdings, LLC (Industry – Customer Relationship Management)
The Principals partnered with industry veteran, Joseph Lembo in June 2003 to build a large scale customer relationship management business focused on servicing major money center banks, insurance companies, telecommunications companies, and mortgage lenders. The business was formed through the acquisition of Atlanta based Advanced Call Center Technologies, LLC when the business had $15 million in revenue. Today, ACCT provides a range of customer contact solutions, including fraud prevention and detection, customer acquisition, customer service, and early out collections from eight call centers in Tennessee, Texas, Arizona, New Mexico, California, and Jamaica. Today the business has over 4,000 employees and has annual sales in excess of $170 million (all the result of organic growth). The company’s headquarters are co-located at the offices of Julip Run Capital.
SPA Car Wash of Berwyn PA (Industry - Car Wash and Detailing)
SPA Car Wash and Car Detail Center (www.spacarwash.com) located in Berwyn, Pennsylvania, is the Philadelphia Mainline's premier provider of automotive car care services. The Principals of Julip Run had been long time customers and were extremely impressed by the unique attributes of the business. From the exclusive client base to the long tenured expert staff, from the heavy duty brushless wash tunnel to the incomparable, high visibility location, SPA has numerous, sustainable competitive advantages. JRC formed SPA Car Wash Systems, LLC and purchased the assets of SPA Car Wash, Inc. in July 2011. SPA is a full service car wash - clients exit their vehicles while they are processed. The moniker "SPA" refers to the extra services, including hand wheel details and compressed air interior blowouts, that are performed after the vehicle exits the tunnel. JRC is actively involved in the management and growth of the business. Currently SPA processes over 75,000 vehicles a year and boasts a client base of over 28,000 vehicles. SPA offers a range of programs to support local community organizations with fundraising activities, including fire companies, libraries, shelters, and school clubs.
Exited Investments
AllianceOne Incorporated, Inc. (Industry – Accounts Receivable Management)
AllianceOne, Incorporated was formed by the principals of Julip Run in March 1999 to build a leading, full service provider of accounts receivable management (“ARM”) services to leading companies nationwide. The company specialized in providing contingent-fee bad debt collections (first and third party) to large credit grantors in the financial services, healthcare, retail, and utilities industries, and to government agencies. The ARM industry was highly fragmented with over 6,500 owner operated businesses and represented a ready opportunity for consolidation. This venture came about through a relationship of the principals with a debt collection agency owner. Another long-time colleague, Robert Mauch, the former CEO of Amerigas, LP (the world’s largest propane distributor, which was built through acquisition) was hired to serve as AllianceOne’s CEO. Management’s strategy to build value was to aggregate regional ARM agencies, apply management controls, centralize duplicative management functions (such as IT, HR, purchasing, and accounting) and infuse capital to generate measurable operating efficiencies for earnings growth. Management also built an off-shore collection center in Montego Bay, Jamaica, to take advantage of the labor arbitrage to further enhance profitability. Co-investors in the business included Stonehenge Capital, Charterhouse Group, JO Hambro, and Argentum Partners. The Company ultimately completed 10 acquisitions, and was generating over $100 in revenue when it was sold in 2005 to France based TelePerformance.
Executive AirSupport, Inc. ("Atlantic Aviation") - (Industry – Aerospace & Defense)
Executive Air Support, Inc. (“EAS”), d/b/a Atlantic Aviation (“Atlantic”) was formed in November 1999 to build a leading chain of fixed base operations (“FBOs”) in partnership with Lou Pepper, who was the owner, CEO and operator of MillionAir Interlink. MillionAir was a national franchisor of FBOs and the nation’s third largest operator that specialized in providing refueling, hangaring and concierge services for private and corporate jets. At the time, the industry was highly fragmented with 4,500 mostly independent operators. The original investment thesis was to leverage the MillionAir brand and build the business by acquiring MillionAir franchisees, some of whom had been acquired by other national players. While the Company’s original acquisitions were franchisees, significant scale was ultimately achieved through the acquisition of Atlantic Aviation, which included the purchase of the world’s largest FBO in Teterboro, New Jersey. After the Atlantic acquisition, Management focused solely on internal growth and profitability as prices for acquisitions were rising rapidly. Management and the Board then repositioned the company and branded it as Atlantic. Its premiere locations and pure-play strategy as an FBO made it a very sought after property. Available capacity at existing facilities created growth opportunities with minimal increase to overhead, and significant scale enabled Management to take advantage of purchasing power for fuel. EAS was sold to Australian based MacQuarie Bank, after an internally managed competitive bidding process in July of 2004, generating a return well above market rates for investors, and significant cash value for management team members. Five years later, Atlantic is now the largest FBO operator in the world and Lou Pepper remains the CEO.
Keystone Ranger Holdings, LLC (Industry – Aerospace & Defense)
Through a relationship forged at EAS, the Principals partnered with aviation industry veteran Steve Townes in July 2001 to consolidate certain segments of the aviation services industry. Steve had just completed the sale of his company, Aircraft Service International Group to BBA Group and wanted to build another business. Together, the team successfully identified a qualified and appropriate platform – Keystone Helicopter, Inc. (“Keystone”) – and formed Keystone Ranger Holdings, LLC (“KRH”) that acquired Keystone January 2002. Keystone was a 50 year old, family owned and operated helicopter services business that provided turnkey medical air ambulance services to hospitals in the northeastern U.S., maintenance, repair, and overhaul services, avionic services, and Sikorsky S-76 completions. While the original intention was to grow the business through acquisition, organic growth fueled sales from $30 million to over $100 million. Management oversaw the complete relocation of the business’ substantial operations to a new heliplex 25 miles west of the original location, which opened with great fanfare. Ultimately, KRH, well recognized for its expertise and quality, was sold in 2006 to its largest customer, United Technologies, owner of Sikorsky Helicopters
Current Parent Company Website (United Technologies: NYSE: UTX) →
Gateway Homecare, Inc. (Industry – Healthcare)
Gateway Homecare, Inc. (“Gateway” ) formed in July 1996 to integrate home health nursing with other home based modalities including physical therapy, respiratory services, wound care and DME to create cross selling opportunities and drive incremental earnings. The opportunity to build this business was originally conceived as a result of a former colleague’s prior experience in the healthcare receivables financing business. Through various broker channels, a St. Louis based home health agency provider was acquired to serve as the platform for a larger buildup in the industry. Their CEO served as the initial CEO of the business. The Company grew rapidly completing 13 acquisitions, ultimately centered new headquarters that were established in Chicago, Illinois. In 1998, sweeping changes resulting from the Omnibus Reconciliation Act of 1997, dramatically changed reimbursement rules and led to industry-wide bankruptcies that wiped out 95% of the industry’s operating companies. In 1999, the Company closed its nursing operations and refocused on respiratory services and DME. The Company was ultimately sold in to Apria Healthcare in 2003.