-ACON Investments Closes Approximately $700 Million Continuation Fund for New Era Cap, LLC
The company has achieved record growth and is well positioned to continue its expansion
WASHINGTON, August 5, 2022 /PRNewswire/ — ACON Investments (“ACON”), a private equity investment firm based in Washington D.C., today announced the closing of ACON Strategic Partners II, LP (“ASP II” or the “Continuation Fund”), a new, single-asset continuation fund of approximately $700 million in connection with the partial sale of its ACON Equity Partners IV (“AEP IV”) portfolio investment in New Era Cap, LLC (“New Era Cap” or the “Company”), as well as an increase in its current ownership interest in New Era Cap. With its 102-year history, the Company has established itself as the world’s largest brand of authentic and lifestyle headwear in licensed sports. The iconic New Era Cap brand is the Official Cap Licensing Partner of Major League Baseball, the National Football League, and the National Basketball Association, as well as more than 170 licensed associations around a variety of headwear, apparel, and apparel products. and accessories.
The Continuation Fund, managed by ACON, will be supported by both new and continuing ACON limited partners. The new investors are Apollo, GCM Grosvenor, Hamilton Lane and Neuberger Berman, on behalf of their respective managed funds. ACON Investments and ACON Equity Partners IV continue to hold significant holdings in the Company.
New was Cap designs, markets and distributes more than 200 million apparel and headwear items annually and has experienced several years of record organic revenue growth, which is expected to continue for the foreseeable future. ACON’s initial investment in January 2021 represented the Company’s first and only institutional capital. The Company continues to implement a multi-growth strategy that includes further expansion of its footprint of more than 800 retail stores in Asia, Mexico, Latin America and Brazil and the growth of its core lifestyle brand in apparel, as well as its DTC platform. New was Cap will continue to be run by Chris Kochits fourth-generation CEO, whose great-grandfather, Ehrhardt Kochfounded New Era Cap in 1920 in Buffalo, New York.
Ken BrotmanFounding Partner of ACON Investments, commented, “New Era Cap represents a unique opportunity of its own in which ACON was an early partner in the business and the first institutional capital for this 102-year-old iconic brand. We are honored to be trusted partner of the Company and we have great respect for the long and rich history of New Era Cap and what Chris Koch and the management team have built. It has been one of our best performing portfolio investments at ACON Equity Partners IV, and we are delighted to continue our partnership with Chris and the team to drive further growth and expansion around the world.”
Chris KochCEO of New Era Cap, stated: “We are delighted to expand our relationship with ACON and build on their extensive experience in the consumer and lifestyle products industry. Their proven track record of supporting businesses through growth and expansion made ACON the perfect partner for our business. This new capital will facilitate the acceleration of our aggressive growth initiatives and allow us to consider potential North American and global acquisitions that may be additive to our already powerful global platform.”
As part of the transaction, Major League Baseball, the National Football League and the National Basketball Association will become minority owners of New Era Cap. Jim basic tablechief revenue officer for New Era Cap, commented, “Having our three largest league partners aligned with us through a strategic equity position further cements our already strong partnerships. We are committed to continuing the strong growth trajectory that we have established for our brand and for our key global partners in the future.”
ACON was represented in the transaction by Evercore. Jefferies LLC also acted as financial advisor to ACON, while Winston & Strawn acted as legal advisor to ACON. Truist Securities acted as exclusive financial advisor and Bryan Cave Leighton Paisner acted as legal counsel to New Era Cap.
About New Era Cap, LLC
Since 1920, New Era Cap has been handcrafting the best caps in the world. Today, with lines of clothing and accessories, the brand is a market leader rooted in sport and an influencer of street culture and lifestyle around the world. With more than 170 licenses in its portfolio, New Era Cap is the brand of choice in the world of sports, fashion, music and entertainment. The company is headquartered in Buffalo, New York, and its products are sold in more than 120 countries. For more information on New Era Cap’s global offices and partnerships, visit www.neweracap.com and the social channels @neweracap.
About ACON Investments
ACON Investments, LLC is an international private equity investment firm headquartered in Washington, D.C. which manages private equity funds and special purpose companies that make investments in the United States, Latin America and Europe. with professionals in Washington, D.C., DallasThe Angels, New YorkBogota, MadridMexico City and São Paulo, ACON has managed $6.9 billion in assets since its inception and has a 26-year track record.
ACON US is one of the most organically diverse venture capital firms, with 70% of senior management (former founders) and 68% of all employees being women and/or people of diverse backgrounds. ACON is a value investor with extensive experience in the consumer, industrial and business services sectors and with a track record of success in situations involving first institutional capital for family businesses, brand repositioning, industry consolidation and corporate spin-offs. Additionally, ACON is focused on a new Strategic Sustainability paradigm across its portfolio with a commitment to achieving sustainable results while driving financial returns and profitability.
For more information visit www.aconinvestments.com
Contact
Meena TheverACON Investments, L.L.C.[email protected] | 202.454.1100
Press Contact
Matt DavisonThe Martin Group para New Era Cap, LLC[email protected] | 716.604.7772
Amy MoritzThe Martin Group para New Era Cap, LLC[email protected] | 716.863.2357
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