Market Overview

Emerald Textiles Has Been Acquired by Encore Textile Services, a Portfolio Company of Highland Avenue Capital Partners

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Emerald's acquisition follows the 2017 acquisition of Encore Textile
Services by Highland Avenue Capital Partners. The addition of Emerald
creates one of the leading commercial healthcare linen service providers
in the Western U.S.

Encore Textile Services ("Encore"), a portfolio company of Los
Angeles-based private investment firm Highland Avenue Capital Partners,
LLC ("Highland Avenue"), announces the completion of the acquisition of
Emerald Textiles, a San Diego-based healthcare linen service provider.
The acquisition brings together the two largest independent healthcare
laundry providers in California, with the combined entity having a total
of five locations on the West Coast. The combined business will have an
unparalleled ability to better serve all the needs of their large
regional customers in both Northern and Southern California.

"We are excited to welcome the Emerald team to the Encore family. It
is our belief Emerald's team of experienced and respected professionals
will complement the Encore team as we continue to scale the organization
through organic growth, acquisitions and greenfield opportunities.
Encore and Emerald are committed to providing the best value-proposition
for current and future customers and look forward to continuing to serve
our combined customer base with continued high-level service,"
said
Greg Anderson, CEO of the combined Encore and Emerald.

Under Highland Avenue's ownership, Encore has grown through significant
new customer wins, material investments in upgrading facilities and a
universal commitment to servicing the customer.

"I am tremendously proud of what the Emerald team accomplished over
the past eight years, and I am confident that the business is well
positioned to continue to grow and thrive," said
Tom Gildred, CEO of
Emerald.

Chris Sznewajs, Co-Founder and Managing Partner at Highland Avenue,
added, "Highland's original investment thesis centered around
building scale while enhancing the Company's ability to service its
consolidating customer base. The addition of Emerald to the Encore
platform is a realization of that thesis and allows us to serve the
entire California market. We are excited about the two entities coming
together and wanted to thank Tom Gildred and the entire Emerald team for
building a great organization focused on their customers."

Northleaf Capital Partners and AIG provided the debt financing for this
transaction. Jones Day acted as Buyers counsel. Cooley LLP acted as
legal counsel to Emerald. Latham & Watkins LLP, Paul, Weiss, Rifkind,
Wharton & Garrison LLP provided debt counsel. VERCOR acted as financial
advisor to Encore and Highland Avenue. Piper Jaffray & Co. served as
sell-side financial advisor as well as advisor for the debt capital
raise. Grant Thornton LLP and Ernst & Young LLP provided accounting
advisory services.

About Highland Avenue Capital Partners

Highland Avenue Capital Partners, founded by Chris Sznewajs and Chris
Bryan, is a Los Angeles-based private investment firm with deep
expertise in operations and growth enhancement in the middle market.
Highland Avenue acquires controlling interests in businesses across
multiple industries including industrials, building products, healthcare
services and business services. Highland Avenue, in conjunction with its
operating executives, partners with exceptional management teams to
assist businesses in unlocking value and reaching their full potential.
For more information, please visit www.Highlandavefunds.com.

About Northleaf Capital Partners

Northleaf Capital Partners is an independent global private markets fund
manager with more than US$10 billion in private equity, private credit
and infrastructure commitments under management on behalf of public,
corporate and multi-employer pension plans, endowments, foundations,
financial institutions and family offices. For more information on
Northleaf, please visit www.northleafcapital.com.

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