Prophet Equity Announces Closing of Fund and Bandwidth for new deals

Southlake, TX – – March 10, 2010 – Prophet Equity LLC, a private equity firm that makes control investments in strategically strong, asset-intensive, underperforming companies with significant value creation potential in the lower and middle market, formally announced that it successfully met its ‘hard cap’, was oversubscribed and completed the final close of Prophet Equity LP with approximately US$300M of commitments.

The Fund targets companies headquartered in North America and leverages Prophet Equity’s proven capabilities in the areas of corporate carve-outs, bankruptcies, and standalone special situations. The fund is relatively agnostic in terms of industry and focuses on companies with revenues below US$500M.

Prophet Equity LP successfully attracted a diverse group of investors from the US and Europe, including pension plans, fund-of-fund investors, insurance and financial institution related investors, academic endowments and family offices. Each investor recognized a tremendous historic investment track record along with a uniquely holistic investment model which blends the most sophisticated financial engineering, operational and consulting techniques to support and partner with managers at a strategic and operational level both before and after the close of each transaction.

Announcing the fund closing, Ross Gatlin, CEO and Managing Partner said: “We are encouraged by the vote of confidence our investors have demonstrated in our track record and team during such an otherwise challenging period for fund-raising overall. Our fresh capital and team bandwidth, combined with a uniquely opportunistic marketplace for our types of transactions, have given us a robust pipeline of attractive opportunities to capitalize on.”

Charles Collie, Executive Director at Prophet Equity and co-founder emphasized that, “We are thrilled to have raised capital and built out such a strong team. We think our model is the right one for companies in and for investors who focus on the middle and lower middle market. Our strategic and operational toolkits enable us to identify compelling investment opportunities and to add substantial value to companies with our team of top notch professionals.”

Prophet Equity is based in Southlake, Texas and is comprised of thirteen professionals. The team has successfully executed on three corporate carve-outs over the last six months alone. Each investment involved a significant management equity participation in the new entity. More information about Prophet Equity is available online at www.prophetequity.com or by calling +1.817.898.1500.

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