Portfolio

"Caymus Equity was a true partner to DMS and provided the necessary support and resources to expand the DMS platform. Their guidance through strategy deployment and leading business practices proved invaluable in driving a shared vision for the company."
Michael Sherman,
CEO of Direct Marketing Solutions

Direct Marketing Solutions

Investing with a Direct Marketing Leader

Founded in 1982, Direct Marketing Solutions ("DMS”) is a leading vertically integrated direct marketing service provider that develops and executes strategic direct marketing programs on behalf of Fortune 1000 companies. DMS acts as an extension of its clients’ marketing departments by offering a turnkey, integrated direct marketing solution, featuring both agency capabilities and onsite production services. We viewed DMS as a strong platform with an excellent management team who had positioned the company as a niche industry leader with a differentiated end-to-end offering.  DMS also had a large, well-known and loyal client base as well as significant growth opportunities. At the time of our investment, the owners were looking for a financial partner to facilitate an ownership recapitalization and assist with the execution of their growth plan. Management maintained significant ownership in the business alongside Caymus Equity.

Execution of the Strategy

During our ownership period, we provided support to our management partners who executed on the value creation plan:

• Enhanced financial and operational capabilities by augmenting a strong existing management team with additional expertise
• Invested in IT systems to drive improved efficiencies, controls and consistency
• Dramatically improved financial and operational reporting
• Invested in additional plant and equipment which significantly increased production capacity and capabilities to support growth
• Transformed from a boutique strategic direct mail agency to a full service, omni-channel direct marketing services provider

As a result, DMS achieved record sales performance and nearly doubled EBITDA during Caymus Equity’s investment period.

Exit

DMS was able to achieve outsized revenue and EBITDA growth during our ownership, while investing in capacity expansion and operating efficiencies. Caymus Equity sold its ownership in DMS in February 2018 to a financial buyer.