PRIVATE EQUITY CONFERENCE HELD IN PROVIDENCE 
 

Management Capital’s 2007 Conference Draws Investors, Attorneys, Accountants from throughout the Northeast

PROVIDENCE, R.I. (November 2, 2007): Management Capital, LLC, a private equity firm serving small- and middle-market companies with leadership and capital, held its second annual Private Equity Conference recently at the Hope Club in Providence.

Over 50 investors, investment professionals, bankers, attorneys, and accountants from New England, the midwest and New York were in attendance. The invitation-only event, chaired by one of Management Capital’s principals, Jerry Cerce, featured presentations by senior executives of three of the Management Capital portfolio companies, namely Richard King, president and CEO of Wire Weld, Inc. (Lockport, NY and North East, PA), Brian Urban, president and CEO of Sencorp, Inc. (Hyannis, MA) and Charles Scagliozzi, senior vice president of White Systems, Inc. (Kenilworth, NJ).

Messrs. King, Urban and Scagliozzi reported in detail about their company’s current and future financial and operational performance as well as investment, sales and marketing strategies for the benefit of the private investors in the audience. Immediately following each presentation, an interactive question-and-answer session was held.

Management Capital CEO Advisory Board members Ronald Lang and Joseph Ettore presented “Role of the Independent Director” on a Board. Mr. Lang, a former executive of United Technologies Corp and founder of Vanguard Medical Systems Corp., serves on the board of directors of White Systems and has lectured extensively to banking, legal and professional organizations on the subject of business turnarounds, corporate re-engineering and management exit strategies. Mr. Ettore, former CEO of several large retail chains including Jamesway, Stuarts and Ames, is on the board of Wire Weld and served an unprecedented three terms as elected chairman of the International Mass Retail Association. Both Lang and Ettore emphasized the importance of skills, experience, talents and industry contacts that a Board director can bring to the table for a company.

Stuart Adam, founder of the international family office advisory firm Adam & Partners of New York, presented “Comments on Private Equity.” Mr. Adam, who has nearly 30 years of experience in the international private banking profession, provided an overview of the debt markets in the United States and abroad. He addressed the fear and uncertainty of the investment community, the subprime lending issue, and how the credit market freeze impacts the private equity market. “Private equity is competing for capital from other asset classes,” states Mr. Adam. “Debt-funded transactions will need to be restructured and equity markets are back in fashion. The buying and selling of small companies will be cheaper as premiums reduce, and exits will be difficult. Because smart banks are going on the other side of the balance sheet to buy distressed debt, returns will be bigger.”

Management Capital principals Jerry Cerce, Ernie Humphreys, Bob Manchester, and Richard Paolino presented an overview of their unique investment criteria. “We seek branded consumer and industrial products companies with revenues of $10 to $100 million seeking to grow, acquire, expand, recapitalize, buyout, or change ownership,” commented Mr. Manchester. “Our investment approach is to serve as an active, hands-on lead investor typically working closely with company management to achieve strategic objectives. For example, if a solid management team is not in place but the ability to build one exists, we will place an interim CEO at the company until a quality team can be assembled.”

Mr. Humphreys concluded the 2007 Conference by summarizing the current market conditions for investing and a look at the near future. “The tightening credit markets and slower economic growth will result in an increase in fundamentally sound companies in financial and operational distress due to unsustainable debt burdens incurred in the last few years of easy credit,” he stated. “This situation will bring provide more investment opportunities for Management Capital. These are the types of situations we seek. This is our model.”



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Established in 2003, Management Capital LLC is a private equity firm providing leadership and capital to companies with revenues of $10 to $100 million. The firm provides subordinated debt and equity capital to be used for expansion, recapitalizations, acquisition support, change of ownership, or buyouts. The firm’s principals work with company management to identify and execute profit improvement and growth strategies. The company is located at 10 Dorrance Street, Suite 500, Providence, RI 02903; phone: (401) 621-8200; fax: (401) 621-8202; Web: www.mgtcapital.com