Cardinal Equity Partners is a private investment partnership that seeks to acquire or assist management teams in recapitalizing lower- and-middle market businesses located in the central portion of the United States. Established in 1993 under the name of Cardinal Ventures and using our own capital, we have been purchasing and growing niche businesses with a long term mission of creating value by providing growth capital and management resources to the companies acquired. In 2008, a group of successful executives joined the original principals, and our name was changed to Cardinal Equity Partners to reflect our enhanced capital and expertise base.

While our name has evolved, our mission is unchanged. We seek to partner with management teams in the acquisition of niche manufacturing, value-added distribution, or service companies that have a positive financial history and that exhibit strong growth prospects either organically or through acquisition. Unlike many institutionally funded private equity groups, our capital sources are experienced entrepreneurs and seasoned business executives who understand that true value
is created by operating well-run businesses over time.

Fund Operators

John F. Ackerman—Managing Director
John is a co-founder and Managing Director of Cardinal Equity Partners and has been involved with the purchase and management of middle market businesses since 1993. Today, John serves as Chairman of New Aqua LLC and Williams Sound Corporation, and is a board member of Cardinal Golf LLC and Guardian Pharmacy LLC, all of which are current portfolio companies. John also serves as an Advisory Board Member of Walker Information, Inc. and M&I Bank, Indiana.

Prior to John’s private equity experience, John was with the Quaker Oats Company where he managed a variety of the company’s brands, and he also served as a Commercial Lender for The National Bank of Detroit.

John serves on the board of Brebeuf High School, the Junior Achievement Foundation, the Indianapolis 500 Festival,  and the Hoosiers For Economic Growth Network, an organization focused on education reform.  In the past, John has served in board leadership roles for Connor Prairie Museum and Foundation, The Venture Club of Indiana, and The Villages of Indiana, the state’s largest child welfare not-for-profit organization.  He is currently a member of  the Young President’s Organization (YPO).

He has a bachelor’s degree in business from The University of Michigan and a master’s in management from the J.L. Kellogg School of Business at Northwestern University. John, a native of Indianapolis, is married and has two children.

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James L. Smeltzer—Managing Director
Jim is a co-founder and Managing Director of Cardinal Equity Partners and has been engaged in sourcing, evaluating, and completing numerous private equity investments since 1993. Currently, Jim serves as Chairman of Motion Tech Automation LLC, and is a board member of Contour Industries, Inc, Cardinal Golf LLC, Williams Sound, LLC, New Aqua LLC, Guardian Pharmacy LLC, and Oak Security Group LLC, all of which are portfolio investments.

From 1985 to 1993, Jim served as the Chief Financial Officer of Cardinal Communications, Inc, where he handled all financial matters and was responsible for overall corporate strategic planning. Prior to this experience, Jim was a Senior Tax Advisor at KPMG Peat Marwick. Jim earned a B.S. degree in Accounting from Ball State University. He is married and has two children.

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Peter Munson—Managing Director
Pete is a co-founder and Managing Director of Cardinal Equity Partners, where he focuses on sourcing deals and managing portfolio investments. Pete serves as Chairman of Contour Industries and is a board member of Motion Tech Automation, and Williams Sound Corporation. 

Prior to founding Cardinal, Pete served as a Senior Vice President for JPMorgan Chase, N.A. based in Indianapolis. In his role as the Market Manager he was responsible for the Commercial Banking efforts for half of the State of Indiana, specifically Central Indiana and Ft. Wayne.

Pete’s community involvement includes serving on the Executive Board of Educational Choice Trust, Executive Director of Parish Council Our Lady of Mt. Carmel, and is a past Board Member of Advanced Physical Therapy, Centerfield Capital Partners, Donors Choose and the finance council of his church.

When Pete is not working he enjoys spending time with his wife and four children.  He also enjoys coaching youth basketball and playing golf. 

Pete is a graduate of DePauw University with a B.A. degree in Economics in 1988. 

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Tye A. Stebbins—Associate
Tye is an Associate with Cardinal Equity Partners.  Tye joined Cardinal Equity Partners in 2009 as an Analyst.  Prior to joining Cardinal, he was an Analyst with National City Capital Markets' Investment Banking Group, focusing on middle-market mergers and acquisitions. Tye attended the University of Dayton where he graduated Summa Cum Laude with a BS in Finance and International Business and was captain of the men’s soccer team.

 

 

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Michael L. Smith—Senior Advisor
Michael L. Smith retired as Executive Vice President and Chief Financial Officer of Anthem, Inc. in January 2005.

Prior to joining Anthem in April, 1996, Mike was Chairman, President and Chief Executive Officer of Mayflower Group, Inc. from 1989 to 1995. Mayflower operated a worldwide relocation service and provided school and public passenger transportation in 30 states. He held various other management positions at Mayflower from 1974 to 1989. He started his business career in the Indianapolis office of Arthur Andersen & Co. following his graduation from DePauw University in 1970.

Mike serves on several Boards of Directors including Kite Realty Group Trust, a real estate investment trust (REIT); Emergency Medical Services Corporation, Inc., the nation’s largest emergency medical services provider; Vectren Corporation; and HH Gregg Appliances, Inc. He also serves on the boards of Finishmaster, Inc.; its parent, Ldi Ltd.; and Calumet Specialty Products Partners, L.P.

Mike has served as a Director of several charitable and civic organizations and is currently on the Board of the Central Indiana Community Foundation. He is also a member of the Board of Trustees of DePauw University, the Indiana Commission for Higher Education, and Lumina Foundation for Education.

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Darell E. “Gene” Zink, Jr.—Senior Advisor
Gene Zink is Chairman and CEO of Strategic Capital Partners, LLC, a privately held real estate investment management firm. Prior to founding SCP, Gene spent 26 years with Duke Realty Corporation, a $10 billion real estate investment trust (DRE:NYSE) specializing in industrial, office, and retail properties. Prior to taking Duke public in 1993, Gene was a general partner in the private predecessor to Duke. After 1993, Gene served as CFO, Executive Vice President, and Vice Chairman of the Company.

Gene joined Duke Realty Corporation in 1982 after practicing law with Bose McKinney & Evans, where he was a partner in the firm. Prior to practicing law he was a Captain in the United States Air Force. Gene received a Bachelor of Arts degree from Vanderbilt University in 1968, a Master of Business Administration degree from the University of Hawaii in 1973, and a Doctor of Jurisprudence degree from Indiana University in 1976.

In addition to being Chairman and CEO of SCP, Gene is also President and Chief Executive Officer of HKZ Enterprises, LLC. He is a Director and member of the Executive Committee of Fifth Third Bank (Indiana); past Chairman, Director and member of the Executive Committee of the Greater Indianapolis Chamber of Commerce; Chairman of the Board of Directors for the Challenge Foundation Academy; on the Advisory Council for La Plaza; a member of the Investment Committee of KC Partners Investment Fund; and Past President of the Park Tudor School Board of Trust, the Park Tudor Foundation, the CICOA Foundation, and the Pleasant Run Foundation. He also served as a Director at Peoples Bank, VEI, Duke Realty Corporation, and Windrose Medical Properties Trust.

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Why partner with Cardinal Equity Partners

• Operating experience. The principals of Cardinal Equity Partners have been acquiring and building successful middle market businesses since 1993. Having partnered with numerous entrepreneurs to help them successfully take their business to new levels, we understand the challenges that confront a growing business. That understanding comes about from the fact each of us came from operating backgrounds prior to our entrance into the private equity environment.
  
  
• Broad industry expertise. In addition to the experience base of the principals, our capital partners are available to serve as advisors and board members. Below is a sampling of the industries we have knowledge of through direct investment experience or from significant operating history:

• Operational Control. As your partner, we view that our role is to aide you in major strategic decisions and to assure you have the resources necessary to achieve our agreed upon strategic plan. Believing that the management team is what made the business successful in the first place, our number one rule is to provide significant support without micro-management. In addition to helping you develop strategic and annual operating plans, we will assist in major personnel decisions as well as helping in significant financial events such as acquisitions/divestitures.
  
  
• Equity Participation. We believe in offering significant equity positions to management teams as we view you as partners, not employees. Our history demonstrates that we have encouraged ownership participation from the beginning of a relationship as well as provided significant ownership rewards for the achievement of performance objectives.
  
  
• Flexibility and Long Term Orientation. Because our funding is from individuals rather than institutions, Cardinal Equity Partners is extremely flexible with transaction structures to meet the unique needs of selling shareholders. In addition, our non-institutional capital base allows us to be “patient capital.” In other words, our objective is not to “flip” the business quickly but rather build long-term value.
  
  
• Conservative Capital Structures. While we may leave some return on the table, our investment philosophy is to create capital structures that have sufficient amounts of equity and proper levels of debt to produce a balance sheet that has financial strength and strategic flexibility. We are fond of saying that banks usually want to lend us more than we want to borrow.

Cardinal Equity Partners seeks to invest $2 million to $7 million of equity capital in situations that fit the parameters listed below. For transactions requiring higher amounts of equity, we will partner with other investors who share our patient capital mentality.
Transaction Types:
Recapitalizations where the owners of a closely held business wish to take some “chips off the table” while continuing to retain a significant level of ownership and management responsibility. Cardinal Equity Partners will join forces with the owner to help grow the company and create further value allowing him a “second bite of the apple.” Management Buyouts where an existing management team wishes to buy out retiring or absentee owners. In this type of transaction, the management team will invest personal funds for an equity stake, and Cardinal Equity Partners will provide the balance of the capital and allow management the ability to earn additional equity through performance and time-based incentives. Family Legacy Situations where an entrepreneur wishes to realize the financial rewards of his or her successful business while providing meaningful management roles and financial opportunities for the next generation. Divestitures and Spin-offs of divisions, subsidiaries, or product lines. Many times a division or subsidiary cannot reach its full potential until it is operating under the guidance of a focused, entrepreneurial management team.
Financial Characteristics:	Company Characteristics:
Annual sales between $5 million and $50 million. Annual EBITDA between $1 million and $5 million. Historical revenue growth in excess of 10% per annum. Minimum 3 years of positive cash flow.	Midwest headquarters. Niche manufacturer, value-added distributor, or service business. A value-added business model, either through unique products, proprietary distribution channels, or strong branding. Growing industry or underserved niche of a large market. No major customer concentration. Repetitive revenue streams. Proven management teams.