Overview
Prophet Equity Management II LLC (“PEM”), is a Delaware limited liability company based
in Southlake, Texas. PEM provides investment advisory services to Prophet Equity II LP, a
Delaware limited partnership, and any parallel or alternative investment vehicles related to
Prophet Equity II LP (collectively, the “Fund”). The Fund was formed in December of 2013,
primarily to acquire controlling equity positions in, and seek to improve the operations of,
strategically viable, asset intensive lower-middle-market companies that are underperforming
their full potential. Prophet Equity GP II LP, a Delaware limited partnership (the
“General Partner”) serves as the general partner of the various Fund entities.
The Fund’s investments will benefit from several unique capabilities: (1) an established
and unique network of professionals (including restructuring advisors, the Fund’s network
of operators and asset based lenders) from which the Fund sources significant transaction
opportunities; (2) demonstrated expertise in creatively and effectively structuring and
closing transactions in complex, underperforming situations (including the purchase of
assets of operating businesses out of Bankruptcy Court, the carve-out of entire businesses
units from larger companies, and the acquisition of stand-alone
operating platforms); (3) a
rigorous process for screening investment opportunities based on size, industry segment,
strategic viability, detailed value creation plans, and price; and (4) the hands-on
involvement of PEM executives in defining and implementing operating improvements
that significantly improve cash generation and profitability in the Fund’s portfolio
companies.
PEM’s principal owner is Ross Gatlin.
PEM had total assets under management of $249,672,605 as of March 30, 2024, all of which
is managed on a discretionary basis.
Description of Advisory Services.
PEM serves as investment adviser to the Fund as set forth in a Management Agreement by
and among the Fund, the General Partner and PEM (the “Management Agreement”).
PEM’s services include:
• examining and evaluating investment opportunities,
• structuring and negotiating acquisitions and the related financing thereof,
• monitoring and managing investments and portfolio companies of the Fund, and
• evaluating and executing divestiture opportunities for such portfolio companies.
The individual needs of the investors in the Fund are not the basis of investment decisions by
PEM. Investment advice is provided directly to the Fund by PEM and not individually to
the Fund’s investors..