PR - Kaulkin Ginsberg Facilitates Sale of Canada-Based Nor-Don Collection Network

Kaulkin Ginsberg is pleased to announce today the sale of Nor-Don Collection Network (NCN), a portfolio company of PRIVEQ Capital Funds (PRIVEQ II Limited Partnership Fund) and GrowthWorks Canadian Fund Ltd., to management. The management buyout of NCN was led by the President and CEO Mr. Paul Moraes. Terms of the transaction were not disclosed. Kaulkin Ginsberg served as advisor to PRIVEQ Capital Funds and the other selling shareholders.

Mr. Moraes was recruited as the President and CEO of NCN’s operations in December of 2000 and has over 23 years of accounts receivable management (ARM) industry experience. PRIVEQ and a predecessor fund to GrowthWorks co-led a buyout of NCN from the Hudson’s Bay Company in 1999. Under PRIVEQ and GrowthWorks ownership, the company underwent many growth initiatives including landing several major government contracts, adding numerous ‘blue-chip’ clients, and successfully entering the U.S. ARM market.

"The structure of this transaction will allow us to provide our current clients with the quality of service they have come to expect from NCN without interruption, while we continue to strengthen our customer relationship in the Canadian and US markets,” noted Mr. Moraes.

Michael Lamm, Associate of Kaulkin Ginsberg Company added, “By leveraging NCN’s 43 years of service, ‘blue chip’ client relationships in the financial services and government arenas, and national collection licenses in Canada and the U.S, Paul Moraes and his team of seasoned executives are well-positioned to build on the NCN ARM platform in both the Canadian and U.S. markets. This transaction exemplifies that M&A transactions continue to close in the ARM industry in spite of the credit crunch. We expect continued deal activity with ARM companies in 2008.

"PRIVEQ is delighted with the success of NCN,” stated Brad Ashley, Managing Partner at PRIVEQ Capital Funds. “There were several major initiatives which were undertaken by management while under PRIVEQ’s ownership. PRIVEQ is pleased that the management team stepped up to buy NCN and we wish them great success going forward."