Ex-Blackstone Exec White’s Family Office Said to Buy Alco

Jun 02, 2014 2:36 pm ET

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June 2 (Bloomberg) -- Dunes Point Capital, the investment firm started last year by former Blackstone Group LP executive Timothy White, purchased the manufacturing businesses of Alco Industries Inc. for an undisclosed amount, according to two people familiar with the situation.

Alco, an employee-owned manufacturer that produces goods such as agricultural chemicals, electrical insulation materials and tools, had $134 million of revenue in fiscal year 2013, according to a document sent to prospective buyers. Houlihan Lokey’s Illiquid Financial Assets practice managed the sale, and Blackstone’s GSO Capital Partners LP and PNC Bank provided financing, said one of the people, asking not to be named because the information is private.

Jordan Benyas, an associate at Rye, New York-based Dunes Point, didn’t respond to a phone call for comment. Andrew Lesko, chief executive officer of Alco Industries, didn’t respond to a phone call and e-mailed request for comment.

Dunes Point, a family office and subsidiary of White Group Holdings, has also gathered money from other family offices to take controlling stakes in industrial and energy companies. Family offices, money managers that handle the fortunes of the world’s richest individuals including computer maker Michael Dell and Microsoft Corp. co-founder Bill Gates, are increasingly teaming up on direct deals to avoid the onerous fees levied by traditional fund managers.

Single-family offices hold about $1.2 trillion in assets and multi-family ones manage about $500 billion, according to Bob Casey, senior managing director for research at consulting firm Family Wealth Alliance.

White Background

Before starting Dunes Point, White was head of private- equity investing at Blackstone’s credit arm GSO Capital, where he was also co-head of mezzanine and co-portfolio manager of the unit’s first mezzanine fund. Prior to GSO, White was at Audax Group and DLJ Merchant Banking Partners.

Dunes Point completed its first deal in August with the purchase of Professional Plumbing Group Inc. from affiliates of Bradford Equities and management.

Alco Industries, which is based in Norristown, Pennsylvania, was formed through a management buyout by former manufacturing executives of Alco Standard Corp. As part of the deal, the seven companies will retain their management teams, said the people.