NAIC Member Success Stories

Since NAIC’s inception, NAIC member companies have invested well over $2.5 billion in over 20,000 ethnically diverse entrepreneurial businesses. These investment cover a full spectrum of industries and investment stages. A sampling of companies in which NAIC members have invested successfully follows below.

Black Entertainment Television, now part of Viacom, is the leading US television network providing entertainment, music, news and public affairs programming to an African-American audience. Black Entertainment Television reaches more than 80 million households and can be seen in the United States, Canada and the Caribbean. NAIC member Syncom was an early investor in Black Entertainment Television. Viacom purchased the company in the summer of 2004.

Clearwire Inc. (NASDAQ: CLWR) is a provider of reliable, wireless, high-speed broadband Internet service to consumers and small businesses. Clearwire utilizes next-generation, non-line-of-sight wireless technology (WiMAX) to connect customers to the Internet using radio spectrum, thus eliminating the confines of traditional cable or phone wiring. NAIC member Pharos Capital Group was a Clearwire investor. Clearwire completed a successful IPO (NASDAQ: CLWR) in March 2007 raising over $600 million.

DemandTec (NASDAQ: DMAN) is the leading provider of pricing optimization and Demand Based Management software. Its products help retailers and manufacturers optimize merchandising decisions for sales, profits, and price image. NAIC member Altos Ventures led the seed round of funding in 1999 and served as lead investor. DemandTec went public in 2007.

The Holland Group, now SAF Holland, is a manufacturer of components for the transportation industry. Smith Whiley invested $10.5 million in senior subordinated notes in December 2003 in a transaction nominated for The M&A Advisor’s Financing Deal of the Year. Smith Whiley had a full realization within 17 months. The Holland Group has since merged with Germany-based Otto Sauer transportation component manufacturer Achsenfabrik GmbH (SAF) to become SAF-Holland.

Medcast Networks, now a part of Healtheon/WebMD, was an Atlanta, GA-based company that developed a highly targeted, proprietary desktop news and information network to meet the unique intelligence needs of physicians and healthcare executives. Much like Bloomberg, the Medcast product was created to provide the physician a “portfolio” of services, including specialty specific medical news, policy news, continuing medical education, reference resources as well as financial, travel and lifestyle information. Medcast Networks was NAIC member Pharos Capital Group’s initial private equity investment. Medcast Networks was acquired by Healtheon/WebMD in November 1999.

Prestige Brands International, now Prestige Brands, Inc.,is engaged in the marketing, sales and distribution of well-recognized, branded consumer products in the over-the-counter drug, household cleaning and personal care categories. The company was formed by NAIC member Provender Capital Group, Jefferson Capital and Peak Capital in 1999 with the acquisition of the Prell Shampoo brand from Procter & Gamble. Prestige Brands subsequently acquired the Chloraseptic, Comet, Clear Eyes and Murine brands between 2000 and 2003. Prestige Brands was sold to GTCR Golder Rauner LLC in a transaction that resulted in a return of four times committed equity of $100 million.

Radio One, Inc. (NASDAQ: ROIAK) is the largest radio broadcasting company primarily targeting African-American and urban listeners. Radio One owns or operates 70 radio stations located in 22 urban markets in the United States and reaches approximately 14 million listeners every week. In addition, Radio One owns Giant Magazine and interests in TV One and Reach Media, Inc. NAIC member Syncom was an original investor in Radio One. The company went public in 1999.

Tritel, Inc., founded in 1996, was an AT&T Wireless affiliate providing wireless communication services in the Southeast. Through government auctions and a strategic agreement with AT&T, Tritel secured a contiguous block of spectrum licenses covering 16 million people in the Southeast and encompassing all or part of Tennessee, Alabama, Mississippi, Louisiana, Georgia, Florida and Kentucky. The company completed a successful IPO in late 1999 and shortly thereafter merged with another AT&T Wireless affiliate, Telecorp PCS, to become the 9th largest wireless phone company in the U.S. The combined company was then sold to AT&T Wireless in 2002 for $5.2 billion. NAIC member Pharos Capital Group was an investor in Tritel, inc.

WorldSpace, Inc. (NASDAQ: WRSP) provides digital satellite audio, data and multimedia services primarily to the emerging markets of Africa and Asia. WorldSpace provides a variety of programming through a subscription service that uses portable satellite radios in underserved markets that lack programming choices. WorldSpace is the first and only company with rights to the world’s globally allocated spectrum for digital satellite radio. Its broadcast footprint covers over 130 countries, including India and China, all of Africa and the Middle East and most of Western Europe – an area that includes five billion people and more than 300 million automobiles. WorldSpace was a portfolio company of NAIC member Syncom. WorldSpace went public in 2005.

WDLP, LLC, now part of Spanish Broadcasting System, was an operator of a television station targeting the Hispanic community in the Miami-Fort Lauderdale area. NAIC member Pacesetter Capital Group invested $6.5 million in the acquisition of the station by Dr. William De La Pena, an experienced broadcasting sector entrepreneur in 2003. Dr. De La Pena upgraded the station’s technology infrastructure and content offerings and secured distribution with local cable and satellite systems. Dr. De La Pena subsequently sold WDLP to Spanish Broadcasting System in 2005 for $37.5 million, providing Pacesetter with an attractive return on its investment.