Oct 1, 2010

Capstone Partners Advises Henley-Putnam University in Latest Round of Financing

Capstone Partners, a national investment banking advisory firm, through its wholly-owned subsidiary, Capstone Capital Markets LLC, announced today that it has successfully advised Henley-Putnam University (Henley-Putnam or the Company), a premier university for online higher education in the strategic security industry, on a new round of financing totaling $4.8 million. The financing was led by Philadelphia-based CMS Small Cap Private Equity Fund and was arranged by Capstone, which also co-invested in the transaction. New York-based Liberty Partners remains an active shareholder in the Company. The new funding will provide Henley-Putnam with working capital that will help it continue to execute its current growth strategy, as well as prepare the Company for the regional accreditation process.

We are excited to have the support of both a new financial partner and our existing shareholders, which speaks to the quality of our institution, faculty, and programs, and to the differentiated value proposition that we offer our students. With the new investment, we can now push forward in pursuit of several initiatives which we view as key to Henley-Putnam’s growth.

Jim KillinCEO, Henley-Putnam

“The field experience of Henley-Putnam’s faculty positions students for unrivalled learning in the disciplines of counterterrorism, intelligence and protection. We believe Henley-Putnam will continue to deliver exceptional student value for those entering or expanding on careers in these areas,” said Bill Landman, Senior Managing Director of CMS.

“We are very excited to have CMS alongside us as a partner. We believe that Henley-Putnam is poised to capitalize on the demand for online higher education in the strategic security industry, and we view CMS as the perfect addition to our team to help the Company achieve its potential,” said Michael Stakias, CEO of Liberty Partners.

Henley-Putnam is an online, for-profit, post-secondary educational institution that provides certificate programs, and bachelors’, masters’ and doctoral degrees in strategic security. Programs focus on delivering expertise in intelligence, counterterrorism, and protection to military/security personnel and working adults. Henley-Putnam’s courses emphasize prevention, deterrence and analysis rather than traditional reactive measures. Courses are taught by an industry-leading faculty with extensive field experience (17 years on average). Of the more than 90 adjunct professors, 90% hold a masters’ degree or higher and 50% hold Top Secret security clearance. With its focused curriculum, elite faculty, and unique understanding of its students, Henley-Putnam has evolved into a leading educational choice among strategic security professionals, enabling it to increase its student population by more than 75% in the last 12 months.

CMS Small Cap Private Equity Fund is a private equity fund of CMS Companies, a Wynnewood, PA-based alternative asset management firm. The Fund pursues investments in small private companies that stand to benefit from the strategic, financial and operational expertise of CMS Companies. Founded in 1969, CMS Companies helps successful entrepreneurs grow, manage and preserve their personal wealth.
Liberty Partners is a New York-based private equity investment firm with more than $1 billion under management. Founded in 1992 by Peter E. Bennett, Chairman, Liberty specializes in middle-market private equity investments in manufacturing, business services, and education-related companies.