Solganick & Co.’s team compiled deal documents including a confidential information memorandum, financials, and crafted the Lone Star Analysis story in order to find a financial partner to fund its continued growth. Solganick targeted and contacted multiple financial and strategic investors in order to find the perfect fit for Lone Star. HCAP Partners was the best fit for the Lone Star team in terms of helping them grow their analytics software business further. Solganick and the Lone Star team negotiated the terms of the deal and closed it smoothly with limited headaches.
SAN DIEGO, CA (October 24, 2019) – HCAP Partners, a San Diego-based mezzanine debt and private equity firm, announced today its investment in Lone Star Analysis, a Dallas-based provider of predictive and prescriptive data analytics and analysis. Terms of the transaction were not disclosed.
Established in 2006, Lone Star Analysis provides decision analysis and advanced analytics software for a diversified customer base of Fortune 500 clients in transportation and logistics, aerospace and defense, and other industrial markets. Lone Star’s TruNavigatorSM, AnalyticsOSSM, and TruPredict™ solution suites allow clients to improve operational efficiency through better data insights. With an IP portfolio of over 50 owned or shared patents, Lone Star helps its clients by turning their data into actionable steps to obtain performance optimization. The company has received awards including CIOReview’s 20 Most Promising Predictive Analytics Solutions Providers and Deloitte’s Technology Fast 500. HCAP’s funding will be utilized for strategic growth initiatives as well as research and development for the buildout of new enterprise software.
“We were pleased to see interest from many potential investors, but only HCAP Partners took the time to understand our long-term vision, and only HCAP Partners took the time to craft an approach which met our goals to grow the business,” said Steve Roemerman, Chairman and CEO of Lone Star Analysis. “We preferred the validation of an institutional investor and we are pleased we designed a deal that met their goals and ours.”
“IoT adoption and the proliferation of AI automation are now requirements across many large enterprises looking for cost reductions and capital efficiency. Lone Star’s predictive analytics tools are at the forefront of the industry. As data created by enterprises increases exponentially, companies such as Lone Star Analysis, with its leading-edge software applications and strong IP, are poised for growth in the years ahead,” stated Principal Nicolas Lopez, who led the transaction for HCAP Partners along with Managing Partner Tim Bubnack.
Lone Star Analysis is a Dallas-based predictive and prescriptive analytics specialist enabling customers to make smarter decisions faster by leveraging data and insights to provide foresight and enhance the decision-making of its customers. Lone Star’s TruNavigator®, AnalyticsOSTM, and TruPredict™ software programs provide transparent, auditable and explainable solutions for clients. Additionally, Lone Star applies the right combination of data, people and processes to get results with its 15 years of experience and more than 1,000 subject matter experts, across several industries, including aerospace, defense, energy, logistics, manufacturing, and transportation. Lone Star, visit.
HCAP Partners was founded in 2000 and is a provider of mezzanine debt and private equity for underserved, lower-middle market companies throughout California and the Western United States. The firm seeks to invest $2 million to $15 million in established businesses generating between $10 million and $100 million in revenues in the healthcare, software, services, and manufacturing industries. HCAP Partners has invested in over 45 companies since it was founded and through ongoing, active engagement with portfolio companies the team at HCAP Partners provides value-added resources to help optimize performance and increase enterprise value. The firm has been recognized as an ImpactAssets 50 fund six years running and, through its Gainful Jobs Approach™, works to facilitate a positive impact on underserved businesses, their employees, and their communities through active portfolio engagement.