Acquisition of Sheldon Good & Company Auction Firm Approved by Bankruptcy Court

Racebrook Marketing Concepts, LLC will acquire the assets of Sheldon Good & Company, the nation’s leading real estate auction firm, pursuant to a sale approved Tuesday by the United States Bankruptcy Court in the Southern District of New York. The new corporate structure will take effect on August 1, 2009, with the firm’s headquarters to be relocated from Chicago to New York City. John J. Cuticelli, Jr., a former Sheldon Good & Company executive who established its New York office in 1989 and ran it until 1991, will assume the position of CEO. Oversight of the company’s operations will be assumed by the Racebrook management team.

Mr. Cuticelli’s company, Cuticelli Capital, provided Debtor in Possession financing and was the “Stalking Horse Bidder” after Sheldon Good & Company declared Chapter 11 bankruptcy in April. (Racebrook Marketing Concepts, a Racebrook portfolio company (www.racebrook.com), is a wholly-owned subsidiary of Cuticelli Capital.) Mr. Cuticelli indicated that he is looking forward to realizing significant synergies created by adding Sheldon Good & Company’s capabilities to the Racebrook team and anticipates that emerging real estate market conditions will provide substantial growth opportunities in the upcoming years.

He commented, “Sheldon Good & Company is a real estate industry pioneer and has a great brand name. I am looking forward to working with the staff of Sheldon Good & Company to build on past successes and create a bright future by introducing the institutional quality management practices the company deserves.”

New York-based Racebrook Capital, a private equity firm, was originally founded by Mr. Cuticelli in 2004 as a portfolio company of Warburg Pincus to capitalize on increasing prospects of disintermediation in distressed debt and real estate capital markets. Through its affiliated companies, Racebrook invests directly in troubled real estate ventures and also provides a comprehensive range of services to other investors active in distressed real estate and capital markets. Together with the Racebrook management team, Mr. Cuticelli has expanded the firm’s core disciplines into the asset backed securities arena, as an anchor investor in TALF bonds, and has become a provider of Debtor in Possession financing to real estate related entities in bankruptcy. Racebrook Capital and Sheldon Good & Company will join forces and share regional offices in New York, Chicago and San Francisco.

Top