Milestone Partners has made a growth investment in Trans-Trade, a provider of transportation and logistics services in the United States and internationally. The company also landed $13 million of financing from Fifth Street Finance Corporation, who plans to make the financing the first investment in its upcoming SBIC fund. The deal marks Milestone's seventh investment in the last 12 months.
The logistics industry is receiving increasing interest from private equity investors, with 42 completed investments in the past three years, according to the PitchBook Platform. The number of deals has been growing each year with 7 in 2007, 17 in 2008 and 18 so far in 2009. The top two investors are H.I.G. Capital and Wynnchurch Capital. Private equity firms are most likely targeting the industry because they feel logistics companies could benefit from consolidation and increasing economies of scale. This is shown by the fact that nearly half of the industry-related buyouts are add-on acquisitions and that the median deal amount is relatively modest at $45 million.