Blackstreet Buys Pennysaver Group
Direct mail shopping guide publisher was previously owned by SV Investment Partners
January 15, 2010
Distressed investor Blackstreet Capital Management purchased the assets of Pennysaver Group, a publisher of direct mail shopping guides, in a bankruptcy court sale.
The Hanover, Md.-based publisher was previously a portfolio company of the New York-based private-equity investment firm SV Investment Partners. SV Investment, formerly known as Schroder Ventures U.S., acquired the publisher in April 2006.
Blackstreet Capital founder and managing partner Murry Gunty and the firm's principal Lawrence Berger led the transaction for the Bethesda, Md.-based firm.
Berger said he expects the company will face growth opportunities as a results of efforts to “increase circulation and increase advertising.” He noted the difficulty advertisers face in trying to reach local customers and said the medium is more effective than Web advertising or local newspapers.
Gunty was formerly a general partner at the midmarket firm Jacobson Partners. Berger joined Blackstreet Capital in 2006, following a career at Boston Consulting Group and The Washington Post.
The transaction is the first acquisition using capital raised from Blackstreet’s second fund, Blackstreet Capital Partners II LP. The fund raised $91 million in 2008 and hopes to raise a total of $125 million.
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