CapX Partners CapX Partners looks beyond the standard and sees the potential in your mission-critical initiatives. We are there for equipment leasing, loans and secured mezzanine capital when our clients need it most. As the equipment lessor to middle-market companies, private equity sponsored and venture-capital-backed firms since 1999, our clients trust us to understand their mission-critical initiatives and respond with capital to build. Wed, 07 Oct 2015 13:45:51 +0000 en-US hourly 1 October meetups Wed, 07 Oct 2015 13:42:26 +0000 admin We’re traveling far and wide during the month of October. If you’d like to meet up with us at any of these events, just give us a call. 

October 6-7
ACG LA Business Conference, Los Angeles, California
Jeffry Pfeffer and Richard Bollinger
Click here for more information about the event

October 13-14
ACG M&A East, Philadelphia, Pennsylvania
Stephen Healey and Ryan Elsass
Click here for more information about the event

October 18-20       
SBIA 2015 National Summit for Middle Market Funds, Palm Beach, Florida
Jeffry Pfeffer and Jim Hallene
Click here for more information about the event 

October 19-20      
Midwest ACG Capital Connection, Chicago, Illinois
Barrett Carlson, Bryan Rozum  and Peter Washington
Click here for more information about the event



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CapX Partners Leads New Financing of Ziosk® Tablets Thu, 24 Sep 2015 19:51:36 +0000 admin

CapX Partners announces the closing of a loan facility that can grow to $100 million to support the growth needs of Ziosk. Ziosk is the creator of the restaurant industry’s first ordering, entertainment and pay-at-the-table tablet and commands 95% of the deployed market. The funds will be used to support agreements with Olive Garden and other restaurant brands to deploy Ziosk tablets across the U.S.

Ziosk is the clear cut industry leader serving more than 25 restaurant concepts across all 50 states. When the Olive Garden deployment is complete, over 150,000 tablets in 3,000 locations will be interacting with more than 50 million guests per month, demonstrating the continued momentum of Ziosk in the restaurant industry.

Olive Garden is the leading Italian restaurant brand in the casual dining segment with more than 840 restaurants and 96,000 employees and more than $3.8 billion in annual sales. Olive Garden is a division of Darden Restaurants, Inc., which owns and operates more than 1,500 restaurants that generate over $6.8 billion in annual sales.

“Ziosk was seeking a strategic financial partner to assist in the expansion of its network,” said Eric Starr, CapX Partner. “Ziosk Chairman and Co-Founder Jack Baum and his team have created a fantastic platform for Olive Garden’s patrons. We are excited, along with our funding partners Garrison Investment Group and Victory Park Capital to provide support for Ziosk’s current and future restaurant partnerships.”

Ziosk provides a technology platform for the restaurant industry. The flagship product is the Ziosk tabletop tablet that enhances the dining experience for several audiences.  It gives guests more control over payment, entertainment and information. Ziosk also helps restaurants improve their service, digital relationship with their guests, operational efficiency and profits. The Ziosk benefits servers by increasing their tips and gives sponsors a unique and valuable way to reach their audiences.

“We are thrilled to have CapX supporting Ziosk and our restaurant partners, and this financing further supports our mission to revolutionize pay-at-the-table solutions at restaurants. We are honored to have their confidence, commitment and support as we grow and look forward to a valuable partnership,” stated Jack Baum.

About Ziosk 

Based in Dallas, Ziosk is the creator of the first entertainment, ordering and pay-at-the-table tablet for the restaurant market. The industry leader commanding 95 percent of the installed tabletop tablet market, Ziosk has deployed more than 150,000 Ziosk® tablets in over 2,500 restaurants across all 50 states. The Ziosk® technology is an enterprise grade solution, featuring a 7-inch tablet and encrypted credit card reader, resides on each table and enables guests to see menu items, play games, view entertainment, order food and beverages and ‘pay on demand;’ all which gives guests control over their dining experience. With its interactive capabilities, Ziosk and its footprint have created the Ziosk Media Network™, a digital media platform for partners to create engaging experiences at the point of purchase. With over 400 million consumers served and growing, Ziosk is revolutionizing the experience and economics of dining. For more information, please visit  Ziosk is the owner of the Ziosk®, Ziosk Media Network™ and zTrivia™ family of marks and logos.

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CapX Finances Fast Growing Tour Bus Company Thu, 17 Sep 2015 16:36:56 +0000 admin

Gray Line of Tennessee operates over 100 commercial vehicles providing charter coach, regional transit, casino runs, school bus services, and sightseeing tours offering visitors to Nashville the ultimate thrill in experiencing the Music City. XMi acquired a controlling interest of GLT in 2012 in partnership with the state of Tennessee’s innovative “TNInvestco” program.

Phase One Capital, working on behalf of Gray Line, approached CapX looking for a combination of growth capital and new term debt financing totaling $7.5 million that could be used to refinance Gray Line’s existing bank facility and potentially provide a dividend payout to one of the founding brother’s roll over value from the original private equity transaction. XMi offered up their ability to finance future capex spend via a new captive leasing special purpose entity if CapX could focus on both bank debt refinance and former shareholder redemption.

“It’s easy to see why Jeff and the CapX team have been as successful as they’ve been.  They focus on the important issues, move quickly, and are easy and pleasant to work with,” says James C. Phillips, Jr.  XMi Holdings, Inc., parent of Gray Line of Tennessee.


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Bryan Rozum Promoted to Director Mon, 14 Sep 2015 16:15:01 +0000 admin CapX Partners is pleased to announce the promotion of Bryan Rozum from Vice President to Director in our Chicago office.

Bryan has been with CapX for five years and is responsible for business development and underwriting within the Midwest region. “Bryan’s leadership appointment will allow us to continue to expand our brand throughout the country,” stated CapX Managing Partner Jeffry Pfeffer. “This promotion is a testament to Bryan’s hard work and dedication to our clients.”

Prior to joining CapX, Bryan served as a Loan Officer within the commercial lending division at The Private Bank. Prior to that, Bryan served as a commercial loan originations analyst at Prudential Mortgage Capital Company.

Bryan earned a bachelor’s degree in Finance with Honors from the University of Illinois at Urbana-Champaign. Bryan is a Chartered Financial Analyst (CFA) Charterholder and is a member of the CFA Institute and the CFA society of Chicago. Bryan serves as Vice-Chair of the Junior Board at Metropolitan Family Services and also serves as a board member at ACG NextGen Leaders.

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Manufacturers Key Targets for Cyber Attacks Thu, 13 Aug 2015 14:00:43 +0000 admin 1 in 3. That’s the odds of a manufacturing company being targeted for a cyber attack according to Symantec, a leading security software provider. While numerous recent headlines focus on banks, healthcare, even car cyber-hacking, some say that attacks against manufacturing companies appear to be a bit more stealthy, with the intent of stealing intellectual property. And don’t think that because you’re not a huge conglomerate, you’re safe. Typically the smaller the business, the easier it is to cyber-break in. If your company is targeted, your designs, your customer lists, your trade secrets, financial data, can be stolen, hugely impacting not only day-to-day business operations but also long-term strategies and plans.

Testifying before a Senate committee, a National Association of Manufacturers spokesperson said, “As holders of the world’s leading intellectual property, including designs, patents, and trade secrets, manufacturers are consistently targeted by cyber thieves.”

From Zombies to Worms: where your business may be compromised.

In tech talk, a zombie is a computer that’s been compromised by a hacker, most often by malware or a Trojan, and then made to move and store stolen information. Zombie Zero was described as sophisticated malware and typical of a ‘state sponsored’ attack–in this case, China. Once activated, the malware connected to the company’s wireless network and attacked computers belonging to the company, with a focus on systems related to finance and enterprise resource planning systems.  After compromising the target’s finance system, the criminals behind Zombie Zero had access to corporate financial data, customer data, detailed shipping and manifest information. They were also able to monitor and control the company’s global shipping and logistics operations.

Cyber attacks have caused a pipeline to blow up. They’ve prevented a steel mill blast furnace from being shut down, causing the entire mill to become disabled. And they’ve been behind numerous stolen secrets, leading to counterfeit products.

In a case involving a leading manufacturer of video cameras, a competing executive stole valuable intellectual property. The company was sharing its IP via email with the executive’s former employer to explore a possible joint venture, and the executive used old log in credentials to gain access to the emails. One simple mistake—not immediately removing the former employee’s account after leaving for another firm—is extremely common.  Because of this theft, the targeted company lost their competitive advantage derived from years of cutting edge research and development, greatly weakening its sales and strategic marketing position.

A white paper published by the National Defense Industrial Association cites a number of reports and statistics about the persistence of cyber attacks on manufacturers, including this statement from McAfee’s 2012 Threat Predictions: “Attackers tend to go after systems that can be successfully compromised, and industrial control systems have shown themselves to be a target-rich environment. The NDIA report cites three categories of concern for manufacturers; 1) Theft of confidential technical data 2) Alteration of data affecting process and product integrity and 3) Impairment or denial of process control, reducing manufacturing availability.

What Cyber Plans Have You Implemented?

We’d love to hear from you. What plans have you put into place to address cyber concerns? Feel free to comment on this blog post so others can learn from your best practices. Plus, complete our quick, 5-question anonymous survey. We’ll share the results in a follow-up post.

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Talking Venture Debt Trends with Pitchbook Thu, 13 Aug 2015 13:10:59 +0000 admin

CapX Partner’s Jeff Pfeffer was recently interviewed by Pitchbook on trends in venture debt as well as equipment financing. First question from Pitchbook’s Garrett Black: Do you see an increase in venture debt usage as part of the trend of companies seeking higher and higher valuations, or what else is driving its popularity?” Read the complete article for the answer and more!

read complete article 

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Middle Market Growth Meetup in Seattle Tue, 21 Jul 2015 15:19:38 +0000 admin Seattle is the home of the annual Northwest Middle Market Growth Conference. We’ll be in attendance on July 30th talking trends and future outlook for middle market growth. It’s a great networking and thought leadership event. If you’re planning on going, shoot us a note or give us a call to meet up. Or look for Richard Bollinger who will be representing CapX Partners.

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CapX Finances Resilient Oil Field Services Provider Sat, 23 May 2015 23:36:24 +0000 admin

For over 25 years, Adler Hot Oil Services has been a trusted service provider, serving energy drilling companies throughout the Rocky Mountain region and parts of the Northwest with its fleet of specialty trucks. Adler was well positioned for future growth, but then the rapid decline in oil prices slowed down U.S. oil production. Because they were successful in retaining all of its customer relationships throughout the downturn, their services were  still in demand. When Adler needed to finance the purchase of additional equipment necessary to support these customer relationship, Adler and Industrial Innovation Partners were informed of CapX’s financing niche and made contact.

“CapX Partners is truly a distinctive growth capital provider. They invested significant time and effort to understand the uniqueness of our company and growth strategy even though our industry, oilfield services, is currently out of favor. It is this thoughtful, forward looking mindset that sets CapX Partners apart and makes them great partners for us.” Nicholas Behl, Managing Principal, Industrial Innovation Partners.


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Comvest and CapX Acquire Karmaloop Fri, 22 May 2015 14:16:57 +0000 admin Boston-based Karmaloop, Inc., a 15-year-old online retailer specializing in streetwear, action sports and music-inspired clothing, today announced that Comvest Partners (“Comvest”), West Palm Beach, and CapX Partners (“CapX”), Chicago, are acquiring all of Karmaloop’s businesses, including, PLNDR, Kazbah and Karmaloop Europe and investing significant growth capital into the business. Comvest and CapX will acquire the Company as part of the Company’s voluntary chapter 11 bankruptcy case pending in the United States Bankruptcy Court for the District of Delaware.

Comvest and CapX served as the stalking horse bidder at the inception of the bankruptcy sale process, which ultimately proved to be the prevailing bid. Comvest and CapX also previously provided debtor-in-possession (“DIP”) financing to the Company to support the Company’s bankruptcy case and sale process. Comvest and CapX’s winning bid was approved today by the U.S. Bankruptcy Court for the District of Delaware paving the way toward a closing of the sale in early June. Under the terms of the Asset and Purchase Agreement, Comvest and CapX will acquire substantially all of Karmaloop’s assets and assume certain trade and other obligations.Comvest Partner, Robert O’Sullivan, said, “We’re excited to enter into this new chapter of the Karmaloop story. We’ve been involved with the Company since 2012 and are big believers in the brand’s power and potential. As such, we’re delighted that the process now allows us to deepen our relationship with the brand. We’ve already invested nearly $3 million in DIP financing during the bankruptcy process, and are investing millions more as part of the acquisition. With ample capital for growth and a debt-free balance sheet, Karmaloop is going to have a fantastic future. The loyal, dedicated Karmaloop customer base will see, over the coming months, new initiatives dedicated to forging a strategic growth path while retaining and building on the essence of the Karmaloop brand.”

Karmaloop founder/CEO Greg Selkoe will transition his role to a new CEO, who will be announced next week. Selkoe will remain with the Company in an advisory role.

According to O’Sullivan, “Stay tuned for additional Karmaloop news soon. We anticipate sharing leadership news next week, and we will also begin rolling out exciting new initiatives that will respond to and support our customers’ and business partners’ evolving needs. We want to sincerely thank all of the employees, vendors and customers who have worked incredibly hard to maintain the business under difficult circumstances and have helped us understand what a truly unique asset it is. We look forward to working with all of them to restore the business to its former glory and beyond.”

The restructuring and new funding will eliminate existing debt that was incurred to support the launch of four new business divisions and the development of television content between 2011 and 2013. Over time, these ventures proved to be economically unviable and the debt that remained as a vestige of these past efforts hindered working capital for the core business. The main property,, has continued to thrive with close to four million unique visitors each month.

About Comvest Partners

Comvest Partners is a private investment firm providing equity and debt capital to middle-market companies across the U.S. With over$2.1 billion of assets under management, the firm includes seasoned, senior level operating executives who partner with management and entrepreneurs to grow businesses and create long-term value. Since 2000, Comvest has invested more than $1.6 billion of capital in over 135 public and private companies.

About CapX Partners

Founded in 1999, CapX Partners is a specialty finance company that focuses on private equity and venture backed portfolio companies looking for debt financing in the $2-$20 million range. CapX provides senior and mezzanine debt including lease lines and favors manufacturing, distribution, technology, energy and healthcare industries with an emphasis on revenue producing fixed assets. For more information on CapX, visit


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More Runway for Venture Capital Liftoffs Wed, 06 May 2015 11:42:06 +0000 admin

In this twenty-first century phenomena of cheap money, interest rates have never been this low for such a long period of time. American business has been sitting on cash with some estimates placing the amount at $1.8 trillion. But now, with continued signals of U.S. economic improvement, investments by businesses are now forecast to reach a record $1.5 trillion in 2015. Combine low interest rates with a growing number of increasingly confident small- to medium-sized businesses focused on making equipment improvements and the result: more capital moving to specialized niches of the debt capital space.

CapX Partners’ Jeffrey Pfeffer writes in ABL Advisor on how non-traditional funding sources such as venture capitalists are exploring opportunities in the equipment finance sector.

read complete article 

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