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As we sit down to write this note it is sunny and 70 degrees
in Denver. We thought to include the fellow above to show
our sympathy with the rest of the country -- especially the
East Coast. The mildness of Denver's winters has to be one
of the country's best kept secrets.
We are sending this to the diverse group of people we met
during the time since starting out to raise the capital for
CHB Capital Partners. It is the first in a series of somewhat
regular updates that you will receive from us.
As the first enclosed tombstone describes, on June 30, 1995
we closed the fund with $34 million in committed capital.
Our investors, both domestic and international, cover the
spectrum from wealthy individuals to corporate pension funds.
Each of them believes as we do, that the family owned and
closely held business market provides a wealth of interesting
investment opportunities. We will focus our efforts solely
on providing these businesses with capital for ownership transition
and expansion on a private, negotiated basis.
The second tombstone describes the completion of our first
investment. Trussway is the largest manufacturer of roof and
floor trusses in the United States. The company is based in
Houston and serves the Southwestern and Southeastern United
States from facilities in Houston, Dallas, Orlando, Atlanta
and Fredericksburg. Trussway's customers -- single family
builders and multifamily developers -- rely on Trussway for
consistent, on-time delivery of custom roof and floor trusses
that are engineered to meet exacting design specifications.
Trussway's performance in these areas has led to its becoming
the recognized industry leader.
The acquisition enabled two non-management founders of Trussway
to sell their stakes while the chief executive (also a founder)
stayed in and an additional 20 members of management bought
in alongside him. CHB Capital Partners owns a majority interest
in the company and both Tad and John are involved actively
in several initiatives at Trussway management's request. As
a matter of fact, Trussway shareholders viewed our ability
to bring skills and expertise to bear on several important
opportunities as a significant bonus. For our first investment,
we could not have hoped to find a situation that fit our template
better.
We continue to look for more Trussways and would appreciate
you thinking of us if you run across a similar situation.
Should you call, we guarantee you a thoughtful and timely
response.
Best regards,
Tad Kelly & John Flanigan
511
Sixteenth Street, Suite 600 Denver, CO 80202
Telephone: (303) 571-0100 Facsimile: (303) 571-0114
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