SOURCE: Compass Equity Partners, LLC

February 01, 2010 10:37 ET

Compass Equity Partners Launches New Private Equity Fund

Compass Equity Partners (CEP) Is Going to Market With a New $100 Million Private Equity Fund That Is Targeting the Field Underwriting and Mortgage Servicing Sectors

NORTH RICHLAND HILLS, TX--(Marketwire - February 1, 2010) - The Compass Equity Partners Opportunity Fund I is a Texas Limited Partnership with Compass Equity Partners serving as General Partner.

The focus of the Fund is to purchase portfolio companies which provide information services to underwriting and loss control departments of financial institutions, rating agencies, real estate holding firms and insurance companies.

According to CEP's Chief Executive Officer Michael Stanley, "The investment mandate of the CEP Opportunity Fund I focuses solely on companies in our target industries where the General Partner has established a strong track record of performance.

"The reason for the tight focus is to position the Fund as the perfect investment vehicle for institutional investors who have allocated relative low risk adjusted funds for buyout purposes. These investors want to put funds to work in an industry that will expand in the near-term and has built in but under-exploited demand. Most importantly, fund investors will be placing money into a fund operated by a proven acquisition and operations team with many years of industry specific experience."

The managers intend to have the Fund fully invested within three years, and will target equity investments of $5 million to $50 million into small and medium sized businesses. The Fund will syndicate debt at a one-to-one ratio, and will require owner subordinated participation, with a targeted fully deployed buying power of $240 million dollars.

The Fund will purchase established companies with solid management and market positions, but currently under-utilized assets where new leadership and updated capital structures will quickly add value.

Pepperwood Partners, LLC has been engaged to assist in structuring the Fund and to introduce the Fund to prospective investors.

About Compass Equity Partners

CEP is led by experienced principals well versed in strategic planning, operations, and finance. They are committed to purchasing companies with realistic growth opportunities, participating in the day-to-day operational activities of the portfolio companies, and selling the companies at a premium for the benefit of the fund LPs. The principals at CEP do not take a passive approach to value creation. Instead, they work side-by-side with leaders of the portfolio companies. CEP historically adds fund value by implementing cross-corporate opportunities, rolling up back office functions, defragmenting industry sectors by purchasing geographically diverse, but operationally similar companies, and then combining these inter-company capabilities.

CEP currently maintains positions in a portfolio of investments valued at more than $100 million dollars. These companies focus on providing Best-In-Class field underwriting services to financial institutions, insurance companies, and mortgage service providers.

For more information on investing in the Compass Equity Partners Opportunity Fund contact Michael J. O'Donnell of Pepperwood Partners at 972.239.0260 or

For more information on fund strategy or operations contact Michael Stanley of Compass Equity Partners at 817.712.2436 or

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