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Growth Stage Capital for Technology Enabled Companies in Southern California and Beyond
Our Story.

Palisades Growth Capital makes growth stage investments in technology, media & telecommunications and business services sectors, encompassing a wide variety of industries including healthcare, consumer/retail, environmental services, financial services and manufacturing services.

Target companies attributes include:

  • Rapid and sustainable growth
  • Recurring revenue streams
  • High margins
  • Proprietary expertise or technology
  • Solid core management teams
  • Opportunities to expand product lines or markets

Palisades makes significant minority structured preferred equity investments in growth stage companies with proven products, solid management teams, and an established revenues that are based in Southern California and the Western US.

$5-$50M
Revenue Traction
$0-$10M
Operating Profit
Our Investment Strategy.
  1. Focus on underserved private equity growth capital markets in Los Angeles Metro and Southern California regions.
  2. $5-$10 million equity investments in capital efficient technology enabled businesses.
  3. Partner with management, through board participation, to provide strategic direction, build out management teams, institute processes to promote growth, and facilitate exit opportunities.
  4. Focus on companies in Technology, Media, Telecommunications, Business Services and related sectors.
Targeted Investment Sectors.

Technology

Enterprise and SaaS software, hardware, aerospace & defense, and certain location technology applications, excluding biotechnology, semiconductors, clean technology, life sciences, and direct-to-consumer sectors.

Media

Media hardware, advertising technology, and other media monetization companies, and will generally avoid investments in media content production companies.

Wireless Communications

More than half the portfolio investment in Fund I were businesses that were directly or indirectly related to the growth of wireless technologies and Infrastructure and Palisades believes that growth and investment opportunities in this area will continue.

Healthcare

Healthcare represents approximately 17% of US GDP and will grow to approximately 22% of GDP as the population ages, new technologies are implemented, and a larger share of the population is insured. Palisades is already reviewing investment opportunities in healthcare and believes that technology will have the ability to reduce costs and improve efficiency in a wide variety of applications.

Consumer

In the past decade the Internet has radically transformed retailing in the United States and the Principals believe there are many opportunities to invest in technologies that improve, marketing distribution, advertising, and customer acquisition.

Manufacturing

Los Angeles County is the largest major manufacturing center in the United States and the city is the largest manufacturing center in the western U.S. with the nation’s largest, and one of the world's largest, shipping ports . Palisades believes technology will continue to transform manufacturing through supply chain management, enterprise resource planning, and new manufacturing processes such as 3-D printing.

Environmental

Businesses throughout all sectors are subject to increasingly stringent environmental requirements and market expectations, and Palisades believes that technology will play an increasingly larger role in environmental services industries.

Financial

Financial Services represented approximately $1.2 trillion of U.S. GDP in 2012 and financial firms spent approximately $55 billion on information technology in 2012 . SOA Software is an example from Fund I of a software technology that allows financial services to better manage transactions with their customers and partners. Fund II will continue to make opportunistic investments in this area.
Management Team.

Experienced Industry Professionals

The principals of Palisades Growth capital have worked together successfully for more than 15 years, in both up and down economic cycles, and apply a disciplined, hands on approach to every transaction. Their unique experiences, expertise, and desire to be personally engaged, have all contributed to the success of the firm. Mr. D’Addario has twenty-seven years of experience in telecom, media and technology financing, investing and investment banking. Mr. D’Addario is actively involved in deal sourcing, investment monitoring, and managing and advising on exit strategies. Mr. Richardson co-founded the Fund with Mr. D’Addario and has seventeen years of experience in private equity investing and investment banking in technology, media, and telecommunications. He is primarily responsible for deal sourcing, due diligence, execution and portfolio company oversight.

Palisades believes that participation in the development of portfolio company strategy, the recruiting of senior management teams, the scaling of revenue and internal systems, and the proactive management of the exit process, are all essential parts of the investment process and contributed significantly to the success of Palisades Fund I. For Palisades Growth Capital II, the Palisades team is focusing on the same investment sectors and is applying the same successful investment process used in Palisades Fund I.

Paul D’Addario
Managing Partner

Mr. D’Addario has twenty-seven years of experience in telecom, media and technology financing, investing and investment banking. Mr. D’Addario is primarily responsible for deal sourcing, investment monitoring, and managing and advising on exit strategy. Prior to co-founding Palisades he was Managing Director and head of West Coast Media from Donaldson, Lufkin & Jenrette (“DLJ”) from 1994 until DLJ’s 2000 merger with Credit Suisse. He was Managing Director at Credit Suisse from 2000 until 2004. Mr. D’Addario executed numerous equity and debt financings, M&A transactions, Initial Public Offerings in the media, telecom and technology Sectors. From 1987 until 1994, Mr. D’Addario served as an Associate, Vice President and Senior Vice President at DLJ. In addition to investment banking work, Mr. D’Addario sourced and executed two highly successful deals for DLJ Merchant Banking. Prior to DLJ, Mr. D’Addario worked as an M&A lawyer at Weil, Gotshal & Manges LLP, and Simpson Thacher & Bartlett LLP. Mr. D’Addario received his B.A. from Boston College, a M.Sc. from London School of Economics, and a J.D. from Villanova Law School.

Anders Richardson
Managing Partner

Mr. Richardson co-founded the fund with Mr. D’Addario and has seventeen years of experience in private equity investing and investment banking. He is primarily responsible for deal sourcing, due diligence, execution and portfolio company oversight. Prior to Palisades, Mr. Richardson worked in the Investment Banking Division of DLJ from 1998 to 2000, where he worked with Mr. D’Addario on a number of transactions and focused on public and private placements of debt and equity securities and buy-side and sell-side M&A advisory services in a variety of industries. Prior to DLJ, Mr. Richardson was an Associate in the Merchant Banking Group at Brown Brothers Harriman & Co. Mr. Richardson received his B.A. from Harvard College and his M.B.A from Harvard Business School.

Jeff Anderson
Senior Director

Mr. Anderson has over 20 years of private equity investing experience. He focuses primarily on growth stage investments in the areas of technology-enabled services, including software-as-a-service, information services, mobile services and cloud applications. Successful investments include Hireright (NASDAQ: HIRE then acquired by US Investigative Services, Inc), Exult (NASDAQ: EXLT then acquired by Hewitt Associates), Lexar Media (NASDAQ: LEXR), Multex (NASDAQ: MLTX then acquired by Reuters), Netscaler (acquired by Citrix) and Snap Appliance (acquired by Adaptec). Previously, Mr. Anderson was a Managing Director and senior partner with Mellon Ventures, a $1.4 billion private equity fund where he managed the Technology Practice Group and Los Angeles office. Prior to joining Mellon Ventures in 1997, Mr. Anderson was with BA Venture Partners, a private equity fund sponsored by BankAmerica Corporation and in product development at The Charles Schwab Corporation. Mr. Anderson received a BS from Montana State University and his MBA from The University of Chicago and The London Business School.

William M. Tomai
Chief Financial Officer

Through an affiliation with Centre Partners Management, Mr. Tomai has been Palisades’ Chief Financial Officer since 2003. He manages all fund back office, accounting, administration, and Limited Partner communications for Palisades. His primary responsibility is Chief Operating Officer and Chief Financial Officer of Centre Partners which he joined in 2001. Prior thereto, he served as Senior Vice President and Assistant Treasurer of Donaldson, Lufkin & Jenrette Securities Corp. which he joined after 13 years with the Bank of New York. Mr. Tomai is also a founding general partner of AspenTree Capital, a private investment firm specializing in public securities and venture capital investments for managed accounts. Mr. Tomai currently serves on the advisory board of Palisades Growth Capital, LLC. Mr. Tomai graduated from Vanderbilt University with a B.S. and earned a M.B.A. from the Wharton School of the University of Pennsylvania.

Jay Sprague
Associate

Mr. Sprague joined the Palisades team in 2016. Prior thereto, he worked in investment banking with Macquarie Capital in New York City. He has robust deal experience with private equity buyouts involving firms such as CVC, Fortress Investment Group, CPPIB, First Reserve and Centre Partners. He received a B.A. from Middlebury College where he majored in International Politics & Economics and played NCAA Division III Football.

Meshach Kisten

Controller

Through an affiliation with Centre Partners Management, Mr. Kisten has acted as Controller for Palisades since 2007. His primary responsibility is Controller of Centre Partners where he has worked since 2007. Prior thereto, he was a Vice President/Controller at U.S. Trust Alternative Investment Group which he joined after working as a Vice President of Finance at Auda Advisors Associates, an alternative investment firm. Prior to that he worked at JP Morgan as a Fund Administrator where he was responsible for the oversight and preparation of the financials for the JP Morgan International Equity Funds. Mr. Kisten began his career at PricewaterhouseCoopers (PwC) as a Staff Auditor, auditing 1940 Act funds and special purpose vehicles. Mr. Kisten has an M.B.A. in Finance from St. Johns University and a B.A. in Accounting from Queens College City University of New York.

 

Portfolio Companies.
Call Us
(310) 571-6214
Address
11726 San Vicente Blvd. #450
Los Angeles, CA 90049
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