Finance Deal for Stone Source

NEW YORK – Stone Source will receive subordinated debt financing from independent investment firm Graycliff Partners.

The financing, announced today by Graycliff, supports a recapitalization of the natural-stone and decorative-surfaces supplier made earlier by Founders Equity.

Headquartered in New York , Stone Source sells products to consumers and contractors via the architect and design channel for commercial and high-end residential use. The company has a nationwide presence, with operations in New York, New Jersey, Massachusetts, Illinois, Texas California and Washington, D.C.

“Stone Source’s reputation for excellence, expansive product line and long-term customer relationships have positioned the company as a premier operator in the architecture and design market,” said Steve Hindmarch, managing director, Graycliff Partners. “Graycliff Partners is excited to work with Stone Source’s management to support the company’s continued success.”

Founders Equity invested in Stone Source in 2006. In 2009, Founders channeled $8.2 million to Stone Source from the New York State Common Retirement Fund; the move leveraged additional capital from outside managers for a total investment of about $15 million in the company.

Founders Equity targets companies that generate annual revenue of $20-150 million for recapitalizations, buyouts, take-private transactions, and turnarounds.

Graycliff Partners is an independent investment firm focusing on middle market private equity and mezzanine investments in the United States and Latin America. Since 1991, the Graycliff Partners team, previously operating as HSBC Capital, has invested over $1 billion and completed over 80 transactions.

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