Dallas Executives Mark Stephens and Doug Wheat Leverage 28 Years of Joint Experience and Complementary Skills to Fill Void in Middle Market DALLAS, April 30 /PRNewswire/ -- Challenger Capital Group, Ltd., a Dallas investment bank, announced that it has merged with Foxbridge Partners, LLC, a private equity firm founded by veteran financier Douglas D. Wheat. The combined firm, which will retain the Challenger name, will serve as a regional financial services institution, offering both advisory services and private equity funding. After 28 years of working together on various ventures and deals, Mark W. Stephens, founder and executive director of Challenger, and Wheat, chairman of Foxbridge, are teaming up to add a strategic private equity component to Challenger's banking services. The new firm brings a combined model unique to the South Central U.S. region. "The combination of an independent advisory business with a broad set of relationships will provide a differentiated investment platform upon which to launch a private equity fund," said Wheat, chairman of the combined entities. "This will be unique in our market, but it is a formula that has been successfully employed by a number of Northeastern firms. Not only will we have the flexibility to invest alongside our investment banking clients, we will also have more professionals sourcing transactions than private equity firms that have greater amounts of capital under management." Challenger's immediate plans include the commencement of raising a private equity fund with target commitments around $300 million and a first closing around the end of the year. "The combination of our two firms establishes a strong platform from which we will continue implementing our strategic plan of building a financial services institution," said Stephens, executive director and president of the new Challenger. "Doug and I bring nearly three decades of experience working together to the new firm, creating a powerful business platform for leadership across the spectrum of investment banking and private equity transactions. The broad range of transaction and fundraising experience we offer benefits middle-market clients." Wheat and Stephens' joint experience dates back to 1979 when Wheat provided legal representation to Stephens, who was serving as underwriter and placement agent at Rotan Mosle and Merrill Lynch. In the early 1980s, Wheat and Stephens were instrumental in the formation of the Dallas office of Donaldson, Lufkin & Jenrette, as well as DLJ Merchant Banking Partners. Prior to Foxbridge, Wheat was president and co-founder of Dallas-based Haas Wheat & Partners, a private investment firm. Prior to Challenger, Stephens was a managing director of Donaldson, Lufkin & Jenrette, and later, a managing director of Credit Suisse. In connection with the merger, Peter T. Grauer, chairman, president and chief executive officer of Bloomberg Inc., and a former colleague of Wheat and Stephens at Donaldson, Lufkin & Jenrette, has joined Challenger's board of directors. "With the amount of capital available today, the benefits of investment banking capabilities, along with the private equity resources, create a compelling value proposition for middle-market companies," Grauer said. "I have known Doug and Mark for 20 years, and their merger represents the combination of two highly regarded and successful dealmakers." "The addition of Peter to the board strengthens an already impressive group of distinguished business executives," Wheat said. "Their leadership will help guide Challenger to becoming the preeminent independent financial services firm in the region." Challenger's new board of directors, all of whom are capital investors in the company, include R. Todd Bradley, executive vice president of Hewlett- Packard's Personal Systems Group; James J. Ellis, managing partner of Ellis Rosier; Michael C. French, executive director of Challenger; Peter T. Grauer, chairman, president and chief executive officer of Bloomberg Inc.; Gary R. Griffith, chairman and chief executive officer of Apex Global Partners Inc.; Joseph E. Hawkins, chief executive officer of MHA Group, a healthcare staffing company which is now a part of AMN Healthcare Services Inc.; and Jerry M. Meyer, chairman and chief executive officer of Walls Industries Inc. Challenger has also formed an advisory board to assist in sourcing and reviewing investment opportunities in middle-market companies. The advisory board consists of Herbert M. Baum, former chief executive officer and chairman of The Dial Corporation, chief operations officer of Hasbro Inc., and chairman and chief executive officer of Quaker State Corporation; Steven C. Francis, co-founder and chairman of AMN Healthcare Services Inc., the nation's largest healthcare staffing firm; R. Jeffrey Harris, former general counsel and director of Sybron Dental Specialties Inc., and current director of Prodesse Inc. and PhysioGenix Inc., two early stage biotechnology companies, as well as Playtex Products Inc. and AMN Healthcare Services Inc.; Harry R. Jacobson, M.D., vice chancellor for Health Affairs at Vanderbilt University and chief executive officer of the Vanderbilt Medical Center; Nick White, former executive vice president of Wal-Mart Stores Inc. and general manager of Sam's Clubs; and Kenneth F. Yontz, former chairman of Apogent Technologies Inc., a supplier of laboratory equipment and supplies, until it was acquired in 2004, and former chairman of Sybron Dental Specialties Inc., until it was acquired in 2006. The combined firm will have an initial staff of 15 professionals with a combined transaction resume of more than 363 investment banking transactions, totaling $70.7 billion in value, and 15 private equity transactions, totaling $10 billion. Since the firm commenced business in 2005, Challenger has completed 14 engagements. About Foxbridge Partners Foxbridge Partners, a Dallas-based private equity firm, was founded in 2006 by Doug Wheat and Todd Robichaux to focus on middle-market investments. About Challenger Capital Group Challenger Capital Group, a full-service investment bank with offices in Dallas and Chicago, has backing from more than 50 investors with professional experience in a wide range of industries. In addition to acting as advisors to Challenger, these investors provide a significant referral resource. Challenger's industry expertise includes transactions in the consumer products, energy, entertainment, food service, healthcare, industrial products, media, natural gas, oilfield service, publishing, retail and telecom sectors. For more information, please visit http://www.challengercapitalgroup.com/ . DATASOURCE: Challenger Capital Group, Ltd. CONTACT: Peggy Bureau, Director of Communications of Challenger Capital Group, Ltd., +1-214-239-8608, or ; or Elizabeth Browne of Michael & Partners, +1-972-716-0500, ext. 26, or , for Challenger Capital Group, Ltd. Web site: http://www.challengercapitalgroup.com/

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