Feedback from Fund Managers, CEOs, and CFOs

“When I first considered creating a fund to invest in lower middle market companies back in the early 2000’s, I recognized the need for greater financial control, reporting, and efficiency within the typical LMM portfolio company. In addition, I sought ways to free up time for our transaction teams so they could work on doing deals, not following up on financial reports, accounting systems, internal control improvements, audit findings, etc. The processes and financial talent Dan was able to bring to the Micro-Cap Fund achieved both goals decisively and had the side benefit of eliminating accounting and EBITDA “surprises” during buyer due diligence at exit.” – Loren Schlachet, Managing Partner, The Riverside Company

Hired in 2005, Dan was the first Group CFO for the Riverside Micro-Cap Fund (RMCF). Dan and his team did a great job in building out and continually improving the financial talent, processes, and controls within our portfolio companies as we grew the portfolio to over 30 companies. RMCF invests in a broad range of lower middle market companies, in a variety of industries, and Dan and his team were able to adjust to and understand different industries and legacy ownership structures (family owned, corporate carve out, sole proprietor, etc.) in order to implement rigorous financial systems and processes. Further, Dan was able to forge solid relationships with portfolio company management teams as well as our Operating Partners to help transition, and grow our portfolio companies.” – Ron Sansom, Managing Partner, Global Executive Operating Partner, The Riverside Company

Thibaut is a designer, marketer, and distributor of high end wallpaper, fabric, and furniture and was a corporate carve out from a much larger public company, acquired by the Riverside Company and management in 2006. Dan Stankey was the Group CFO of the Riverside MicroCap Fund and was very helpful in the transition from a corporate subsidiary to a private equity owned portfolio company in several areas. Dan drove the creation of the Riverside and lender reporting processes, strengthened our internal control systems, as well as helping integrate an add-on acquisition we closed in 2008. I was also impressed by Dan’s willingness to get into the weeds and get his hands dirty – literally. I recall an instance when issues arose with the count and valuation of our initial year-end inventory, Dan postponed his flights and stayed to work with us in the stockroom to ensure an accurate count that was acceptable to our auditors. Dan exhibited the “hands on” approach needed in helping smaller companies succeed.” – Bob Senior, CEO Thibaut Design

“GTI Diagnostics (now a part of Immucor Inc.) a transplant specialty diagnostics company was the for-profit arm of a large not-for-profit blood bank when acquired by the Riverside Company. As Controller of GTI, I worked closely with Dan Stankey who was the Riverside Micro-Cap Fund Group CFO, to help the transition of GTI from not-for-profit ownership to private equity ownership. Besides assisting our transition to the operating rhythm of Riverside and working within a leveraged environment, Dan was very helpful in my professional development which led to my promotion to CFO of GTI. During the transition, we implemented a budgeting process driven by department managers for the first time. Dan then pressed the management team to hold monthly review sessions, during which I reviewed the financial results and performance against budget. Dan also helped arrange for a professional development coach to work with me and help my transition from Controller to CFO. I enjoyed working with Dan and the mentoring I received.” – Tina Bethhauser, CFO, GTI Diagnostics

We grew Albireo Energy to a multi-location business of significant scale in little over three years, driven by seven acquisitions. Dan’s expertise and hard work with each acquisition from due diligence onward was critical to integrating these add-ons into the Albireo platform and building a strong foundation for growth. As is the case with lower middle market companies, significant time and attention was needed to integrate these businesses from an accounting and business process standpoint – Dan led these efforts and did a great job in helping Albireo grow.” – Phil Bomrad, Former CEO, Albireo Energy LLC

Dan is the exceptional CFO in that he spends the effort and time to understand all of the facets of a business decision, and does not retreat behind spreadsheets and financial barricades when faced with something innovative or new. A past business owner himself, Dan has a strong ability to weight risk and benefit before moving ahead.” – David Weber, Former CEO, Novar Controls Corporation