Blue Wolf Capital Partners
| Company type | Private |
|---|---|
| Industry | Private equity |
| Founded | 2005 |
| Founder | Adam Blumenthal, Josh Wolf-Powers |
| Headquarters | New York City, New York , United States |
Area served | United States |
| Products | Investments in middle-market enterprises in health care, forest and building products, manufacturing, industrial, and engineering services sectors |
Blue Wolf Capital Partners LLC is a private equity firm headquartered in New York City, New York, United States. Established in 2005 by Adam Blumenthal and Josh Wolf-Powers, the firm focuses on investments in middle-market enterprises within sectors such as health care, forest and building products, manufacturing, industrial, and engineering services. As of late 2022, Blue Wolf has successfully raised four investment funds and oversees assets exceeding $2.9 billion.
History
The firm was founded in 2005 by Adam Blumenthal, who previously served as the first deputy comptroller for New York City and held a managerial role at American Capital Ltd,[1] alongside Josh Wolf-Powers, formerly managing director of private investments at the New York State Comptroller's office.[2] Blue Wolf incorporates ESG criteria within its value creation methodologies.[3] Both founders initially acted as managing partners,[4] although Wolf-Powers eventually departed to pursue a profession in clinical social work.[5]
Blue Wolf concentrates on companies that are subject to government regulation or receive subsidies and are experiencing financial difficulties or workforce challenges.[6] Its investment approach prioritizes acquiring controlling interests in organizations undergoing management changes, facing distress, or dealing with regulatory hurdles.[7] Typically, the firm targets businesses with annual revenues above $50 million and enterprise valuations near $500 million.[8][9] The firm's third fund closed in July 2013 with capital exceeding $300 million; its fourth fund concluded in October 2017 at $540 million.[10][11] In April 2022, Blue Wolf secured $1.1 billion for its fifth fund.[12]
Operations and acquisitions
Among Blue Wolf’s early acquisitions were Finch Paper Holdings, Northern Pulp Nova Scotia Corp., and Montauk Energy Capital. In 2008, its second fund purchased two hospital laundries based in Chicago, combining them into Healthcare Laundry Systems. After boosting volume by 70%, the company was sold in 2011. This transaction earned Blue Wolf the 2011 Small Market Deal of the Year award from Buyouts Magazine, an honor it had previously received in 2008 for Montauk Energy Capital.
In 2017, Blue Wolf invested $20 million to revive a bankrupt sawmill located in Glenwood, Arkansas, rebranding it as Caddo River Forest Products and generating approximately 130 new jobs. By May 2018, Blue Wolf divested both Caddo River and Suwannee Lumber Co., which had been acquired in 2013, selling them to Conifex Timber for $258 million through a combination of cash and shares.
February 2018 saw Blue Wolf acquire a majority interest in Petrosmith, a storage tank manufacturer based in Abilene, Texas. Two months later, it merged home care providers Great Lakes Caring and National Home Health Care with Jordan Health Services to create Elara Caring—one of the largest home-based care organizations in the United States—serving over 65,000 patients daily with more than 32,500 caregivers operating across 225 locations in 16 states.
In May 2019, Blue Wolf acquired Fox Rehabilitation, a provider specializing in senior in-home medical services under Medicare Part B. In October 2020, it sold Pharmaceutical Strategies Group—a Plano, Texas-based pharmacy benefits consulting firm—to Omnicell for $225 million. Later, in March 2021, Blue Wolf completed the acquisition of Colson Group, an Oakbrook Terrace, Illinois manufacturer of casters and wheels.