Cascadia Capital Finalizes Strategic Growth Investment from Atlas Merchant Capital

We are excited to share that Cascadia Capital’s strategic growth equity investment from an investment fund affiliated with Atlas Merchant Capital LLC has officially closed following routine regulatory approval. With the additional resources from the investment and the Atlas team’s support, Cascadia will continue its geographic, product, team, multi-industry, and sponsor coverage growth nationwide.

Cascadia Co-Founder, Chairman & CEO Michael Butler and Co-Founder & Managing Director Kevin Cable sat down with Atlas Founding Partner & CEO Bob Diamond to discuss how the investment is already adding exciting momentum to the firm’s growth, client services, and team expansion plans.

Read the Full Press Release Here

To speak with our team or learn more about how this partnership will further enable us to achieve successful outcomes for the businesses and capital providers we serve, please reach out.

 

Cascadia Capital Capital Opens Austin Office Led by CEO Michael Butler

Expanding Cascadia’s industry expertise, product offerings and financial sponsor coverage to Texas and beyond

Cascadia Capital, one of the nation’s most active independent middle-market investment banks, today announced the opening of a new office in Austin, Texas, marking the firm’s fifth office in the U.S., alongside Seattle, Los Angeles, Minneapolis, and Nashville. Cascadia Chairman and CEO, Michael Butler, has relocated to Austin to build and lead the new location. The firm expects to recruit and hire aggressively from the incredible pool of local talent and individuals seeking to relocate.

“Austin – and the broader Dallas, Houston, San Antonio corridor – is an innovative and fast-growing region, home to and continually attracting young talent, seasoned entrepreneurs, growth businesses, investors and Fortune 500 companies,” said Butler. “We see a very unique opportunity in Austin, as the epicenter of four large, growing markets in Texas, to fill a gap in the robust ecosystem of business advisors and service providers, and bring our independent and flexible middle market advisory services to bear for the benefit of our clients and partners throughout Texas and the greater Southwest.”

Cascadia offers family business owners, entrepreneurs, private equity, family offices and other institutional investors a variety of services from valuation and fairness opinions to equity and debt capital raising, to both buyside and sellside M&A and recapitalizations. The firm provides sub-sector nuanced guidance across industries, including Business Services; Consumer & Retail; Energy Transition & Climate Tech; Food, Beverage & Agribusiness; Healthcare; Industrials; Robotics, Automation & Artificial Intelligence; and Technology.

With clients and partners throughout the U.S. and around the world, Cascadia has a strong and growing presence in key strategic markets. Establishing the Austin office underscores the firm’s strategy to focus on fast growing markets, expand and enhance the Cascadia team and product offerings, increase collaboration and deal flow with financial sponsors, and ultimately deliver the most impactful client experience to business owners and investors.

“We are thrilled to join the vibrant community of Austin,” added Butler. “This is a natural continuation of Cascadia’s tremendous growth trajectory and an opportunity to meaningfully enhance our platform by expanding our geographic footprint and client coverage.”

This is one of several growth announcements the firm intends to make in the coming months. In September, Cascadia announced that it had reached a definitive agreement to secure a strategic growth equity investment from an investment fund affiliated with Atlas Merchant Capital LLC. With additional resources from the investment and the Atlas team’s support, Cascadia will continue its geographic, team, product, industry and sponsor coverage growth nationwide.

Investment Banking Shifts Create Space for Middle Market Firms

Seattle investment bank Cascadia Capital lands unique funding deal to expand services

Cascadia Capital Accelerates Growth with Strategic Investment from Atlas Merchant Capital

Atlas agrees to invest in one of the nation’s largest remaining independent investment banks poised for significant team, product, and sponsor coverage expansion

Cascadia Capital, one of the nation’s most active independent middle-market investment banks, has reached a definitive agreement to secure a strategic growth equity investment from an investment fund affiliated with Atlas Merchant Capital LLC. With the additional resources from the investment and the Atlas team’s support, Cascadia will continue its geographic, product, team, multi-industry and sponsor coverage growth nationwide.

“We have achieved record growth in recent years and are thrilled to have found the right partners in Atlas to continue on this exciting trajectory,” said Cascadia Capital Chairman and CEO Michael Butler. “Atlas brings the value-added resources we desired in a capital partner, allowing us to continue in lockstep with the middle-market founders, family owners, and executives we serve while accelerating our private equity coverage and product offering expansion.”

Cascadia provides businesses and investors with sub-sector nuanced guidance in a range of industries, including Business Services; Consumer & Retail; Energy Transition & Climate Tech; Food, Beverage & Agribusiness; Healthcare; Industrials; Robotics, Automation & Artificial Intelligence; and Technology. The firm will proactively hire additional experienced bankers and cohesive teams to augment its existing sector expertise, initially focused on growing the healthcare, technology, and industrial technology teams. With clients across the U.S. and around the world, the firm has a strong and growing presence in strategic markets, including Seattle, Austin, Los Angeles, Minneapolis, and Nashville.

“Across the broader investment banking landscape, large Wall Street banks have become less entrepreneurial, less versatile, and more like utilities. This shift — coupled with the recent wave of consolidation — underscores the critical need for what Cascadia brings to the market as an innovative and flexible independent firm. We are proud to align our firm with this talented team,” said Atlas Merchant Capital Founding Partner and CEO Bob Diamond.

“Maintaining its independence and middle-market focus with the support and resources of Atlas will allow Cascadia a distinct advantage — providing an inherently more flexible and impactful client experience with outstanding industry coverage and outsized product depth and breadth,” added Atlas Founding Partner and CIO David Schamis.

In addition to team and vertical coverage expansion for its robust merger and acquisition and strategic advisory services, Cascadia plans to deepen its existing debt capital markets, capital raising, fairness opinion, and valuation practices. A cornerstone of the investment is driving increased collaboration and deal flow with financial sponsors.

“This investment will enable us to further enhance our team to more broadly deliver our leading industry and product resources to the financial sponsor community,” said Cascadia Managing Director Scott Ames, head of the firm’s Financial Sponsor Coverage practice. “We look forward to expanding these relationships while continuing to provide middle-market companies with the sector-focused guidance that has made Cascadia one of the most active independent advisors in the market.”

Perkins Coie provided legal counsel, and Houlihan Lokey served as Cascadia’s financial advisor in connection with the transaction.

This investment is subject to the satisfaction of FINRA regulatory approvals.

About Cascadia Capital
Cascadia Capital is an independent investment bank providing middle-market entrepreneurs, family-owned businesses, and private equity firms with merger and acquisition, capital raising, and strategic advisory services. For over 20 years, the firm has strived to deliver the best outcomes for its clients by leveraging its extensive transaction experience, deep domain expertise, and commitment to building long-term relationships. Cascadia is a pure advisory firm and is not conflicted by trading, lending, research, or cross-selling business. For more information, visit the firm’s website at www.cascadiacapital.com.

About Atlas Merchant Capital LLC
Atlas Merchant Capital LLC was founded to participate in compelling market opportunities in the financial services sector. Based in New York and London, Atlas Merchant Capital was founded by Bob Diamond and David Schamis, who, together with their partners, form a complementary partnership with extensive operating and investing expertise across the financial services landscape. Further information is available at www.atlasmerchantcapital.com.

Scott Ames Joins Cascadia Capital to Launch Financial Sponsor Coverage Efforts

Cascadia Capital, an investment bank serving middle market clients globally, is pleased to announce that Scott Ames has joined the firm as Managing Director of Financial Sponsor Coverage. In this role, he will continue to develop and institutionalize relationships with leading private equity firms, family offices and other capital players across the U.S.  Mr. Ames will work closely with Cascadia’s industry sector bankers to make valuable connections, effectively coordinate deal flow, and leverage bankers’ sub-vertical expertise to provide buy-side, sell-side and financing services to the firm’s clients and institutional partners.

“Financial sponsors are a significant part of our business, and we have developed deep relationships within the ecosystem over the past two decades,” noted Michael Butler, Chairman and CEO of Cascadia Capital. “In recent years, an increasing number of our engagements have involved private equity firms and other sponsors, which has created demand for a dedicated and coordinated financial sponsor coverage effort to allow the firm to better serve this constituency.”

With the support and partnership of our clients and partners, and a historic M&A market, Cascadia closed 51 transactions in 2021. Over 65% of Cascadia’s transactions were M&A advisory and of those, 40% were sold to private equity firms. Over 30% of Cascadia’s clients last year were institutionally-backed pre-transaction.

“We are thrilled to have Scott aboard to lead financial sponsor coverage for Cascadia,” added Mr. Butler. “Following a national search, Scott is the best cultural fit and the clear right choice to launch this dedicated effort at Cascadia. He will provide an unwavering focus to our approach of building deep strategic relationships with private equity and family office firms, aligning our areas of industry expertise with a sponsor’s specific investment criteria and ROI goals to deliver the best possible outcomes and opportunities for our clients and partners. There are very few firms that can successfully serve entrepreneur and family-owned businesses as well as they can institutionally-backed organizations, and I believe Cascadia is one of them. Those capabilities are strengthened with the addition of Scott.”

“I’m looking forward to working alongside a talented group of senior industry sector experts at Cascadia Capital to help institutionalize relationships with leading financial sponsors,” said Mr. Ames.  “The firm has such a strong reputation and track record across multiple industry verticals, and I’m excited to bring these capabilities to bear for the benefit of Cascadia’s financial sponsor clients.”

Mr. Ames joins Cascadia from Lazard, where he was a senior member of the Financial Sponsor Coverage group and led the firm’s West Coast efforts. He will be based in Cascadia’s Minneapolis office and will serve our clients and partners across the U.S.  To learn more or connect with Scott Ames, please visit his bio here.

James Cartales Promoted to Managing Director at Cascadia Capital

Cascadia Capital is pleased to announce the promotion of James Cartales to Managing Director in the firm’s Consumer & Retail group. As a Managing Director, Mr. Cartales will continue to provide M&A advisory and equity capital raising services to founder and family-owned companies across the ecommerce, experiential retail, and consumer services sectors.

Mr. Cartales joined Cascadia Capital in 2013 and has been involved in over 40 transactions over the last nine years at the firm. During that time, he has played a central role in Cascadia’s marquee consumer transactions, such as the sale of Air Waves to Hybrid Apparel, the sale of 2nd Ave Value Stores to BRS & Co. and Rosser Capital Partners, and Flagship Food Group’s recapitalization of La Tortilla Factory.

“James has been an integral leader of the firm for many years and has steered some of Cascadia’s largest and most complex transactions,” noted Michael Butler, Cascadia Capital Chairman & CEO. “He is tremendously deserving of this promotion and has long displayed the expertise and capabilities necessary to serve our consumer clients with the highest caliber, trusted advice and support.”

As a founding member of the Consumer & Retail practice, Mr. Cartales has been instrumental in reshaping the firm’s consumer focus, particularly in light of COVID-19’s evolving impact on the retail sector.

“We believe Consumer & Retail will continue to be a vibrant industry for Cascadia’s investment banking platform. However, the sector has undergone significant change over the past three years,” added Bryan Jaffe, Cascadia Managing Director. “James is highly knowledgeable about consumer behavior and has deep expertise in the business models that are resonating today and will likely continue to resonate in the foreseeable future, in particular within apparel and accessories and home furnishings. Additionally, his experience in unit-economic models is applicable to both the physical and digital channels that our clients sell through.”

“I am honored to receive this promotion and look forward to continuing to contribute to Cascadia’s long term growth objectives by effectively serving our exceptional clients,” Mr. Cartales added.

James Cartales is based in Cascadia’s Seattle office and serves Cascadia’s consumer clients across the U.S. For more information, visit his bio here.

Looking Back and Ahead – Thank You to our 2021 Clients & Partners!

As we head into our 23rd year in business, we are thankful to reflect on the record year we had in 2021. First and foremost, thank you to our clients, as your success is our success. We are grateful to work with so many amazing entrepreneurs, family businesses and private equity portfolio companies who have built high-quality growth companies with which we are honored to be associated.

Second, we have a deep appreciation for all of our partners in the deal-making community, who we rely on to assist us and our clients on legal, accounting, quality of earnings, tax, finance, and financial advisory matters. It takes a village to make successful transactions happen, and we are thankful to have first-class partners aligned with us to deliver the best outcomes for our clients .

Finally, thanks to the Cascadia employees, especially our dedicated team of execution bankers, for the all-in effort last year to maximize value for our clients, while expanding our platform in the Northwest and nationally. As we reflect on an extraordinary year in 2021 and forecast ahead for the coming year, we will continue to invest in expanding our geographic reach and industry expertise in 2022 and beyond.

With the support and partnership of our clients and partners, and a historic M&A market, Cascadia closed 51 transactions in 2021. If you are interested in more information on our 2021 transactions, you may download a complete list below.

 

  • As a national middle market firm, 60% of our 2021 clients were headquartered outside of the Northwest
  • 60% of our clients were acquired by strategic buyers and 40% by private equity firms, as we have deep access to the broad universe of buyers
  • 30% of our clients were institutionally-backed pre-transaction

Click Here to View Our Transactions Map

  • 65% of our transactions were M&A, 20% were equity capital raises, and the remainder strategic advisory mandates
  • 20% of our clients were headquartered in California, which we view as major growth market for the firm in the coming years
  • Geographic expansion was ongoing with the addition of a Nashville team and our growing Southern California office

The Value of Industry Sub-Vertical Expertise

Our team has long held deep expertise and transaction experience in niche segments across a variety of industries. We remain committed to our sub-vertical industry structure, with each of our bankers focusing tightly on specific segments of an industry. This allows us to provide the most innovative and expertise-driven service for our clients, as well as to align the right individuals within our network, across industries of common focus.

 

We remain bullish on the prospects for 2022 and look forward to working with you all in the coming year ahead. Please reach out if there is any way we can be helpful.

Cascadia Capital’s Winter 2021 Newsletter

As this extraordinary year draws to a close, we are seeing no end in sight for the current supercycle. The boom in growth and activity continues, fueled by unprecedented technology innovation, a surplus of cash, and low interest rates. Rising inflation and the prospect of upcoming interest rate hikes have not deterred dealmakers.

In our Winter Newsletter, we review the key factors fueling the current market dynamics and we provide three 2022 business resolutions and tips for companies looking to transact in the year ahead. We also take a closer look at the pandemic’s effect on the dealmaking environment and share how we are working with our clients to dissect their financials and identify what we call their COVID valuation gap.

Download Cascadia Capital’s Winter 2021 Newsletter

NEWSLETTER HIGHLIGHTS

  • The supercycle continues and we expect deal activity to accelerate again in January.
  • 2021 has been an inflection year with the Fourth Industrial Revolution taking flight.
  • High prices have heightened buyer expectations; deals are restructured, re-traded, or abandoned if a company misses its numbers by a small margin.
  • Companies looking to sell need to understand their COVID valuation gap to avoid surprises.

As we continue living in these historic times, our entire Cascadia team is committed to helping entrepreneur- and family-owned businesses fulfill their aspirations and capitalize on the fundamental shifts happening across all sectors.

Cascadia Capital Continues to Grow with Expansion into Nashville

Cascadia Capital, an investment bank serving middle market clients globally, continues its growth with an expansion into the Nashville market and addition of a dedicated local team covering healthcare services. This move adds to the firm’s industry depth and national coverage. Moreover, Cascadia’s healthcare team has grown significantly, and we view the expansion as a deepening of a core focus area within one of our most active practice groups.

Nashville is one of the nation’s most diverse and robust economies, and home to a multitude of middle market businesses and a thriving investor community, particularly within healthcare. The Middle Tennessee healthcare industry alone generates more than $92 billion in revenue and more than 570,000 jobs*. Coined the healthcare capital of the U.S., Nashville is a nexus of healthcare companies and investors, with tremendous innovation and a broad network of top industry players. Having boots on the ground in Nashville will allow us to better support our healthcare clients nationwide and globally.

Cascadia’s Nashville presence will be led by Vice President Vitaliy Marchenko, with a focus on expanding Cascadia’s healthcare services coverage, capitalizing on the firm’s recent transactions in women’s health and fertility and behavioral health, as well as expanding efforts within other physician practice management areas.

Since its formation, Cascadia’s healthcare practice has become a pillar of the firm’s evolution to industry centric, deep domain investment banking, having closed more than 45 transactions. The team has had the privilege of supporting over a dozen healthcare clients in the last 12 months in capital raising, buy and sell-side M&A processes. Eight of those transactions were completed in 2021.

“With all of this activity and the record hot M&A and capital markets, Cascadia is investing in growing and expanding its healthcare team for the benefit of our partners and clients,” noted Michael Butler, Cascadia Capital Chairman and CEO. “Our team in Nashville creates a dedicated local presence in a large and established market that has shown significant opportunity for the firm across the industries we serve.”

“Nashville is an ideal location for both the firm’s overall expansion and as a base for our growing healthcare services coverage,” added Kevin Cable. “The cumulative pooling of health-related innovation, talent and entrepreneurship has a compounding effect of attracting more healthcare expertise and driving new business creation and partnership. Cascadia can naturally add value to that ecosystem through our client-centric advisory work.”

Cascadia recognized a similar market concentration of medical device companies in Minneapolis, where the firm has had an office since 2015. In 2020, we welcomed Managing Director Adam Stormoen to lead the Minneapolis branch – bringing with him over 20 years of investment banking experience with medical device companies.

“We are mapping the deep industry vertical expertise on our team to geographies that are strategic to those sectors, as we believe that allows us to meet the growing needs of the industry’s players and create the most value for business owners and entrepreneurs,” added Mr. Butler.

Other markets that Cascadia is eyeing as possible expansion opportunities include Pittsburgh, Austin, and Raleigh-Durham.

* Source: Forbes, April 12, 2021: Nashville Is The Health Services Capital – Here’s Why This Explosively Growing Region Is More Than Music City USA.
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