Growth Capital Partners, L.P. Announces that the Southwest Mezzanine Investments II, L.P. has added a Third Portfolio Company to its $65 Million Fund

HOUSTON, February, 2007/PR/ - Growth Capital Partners, L.P. (“GCP”) a Houston-based investment and merchant firm, today announced that Southwest Mezzanine Investments II, L.P. (“SMI II”) has added a third portfolio company to its $65 million fund.  Gaines Group, LLC is a premier provider of home fragrance and candle products.  SMI II’s investment will be used to fund Gaines Group’s acquisition of Guild House from American Greetings Corporation (NYSE: AM).  Guild House, the candle division of American Greetings Corporation, is a major supplier of jar candles to Walgreens, Wal-Mart, Kmart and Carlton cards.  SMI II provided $5.5 million of subordinated debt with warrant to finance the transaction.

About Gaines Group, LLC - Gaines Group, LLC focuses on the design, manufacture and marketing of home fragrance and candle products for sale through large specialty retail chains such as Pier 1 Imports and Kohl’s.  Products supplied by Gaines Group include pillar and jar candles of various styles, styles, sizes and fragrances as well as a line of liquid soaps, scrubs and lotions.  Gaines Group’s products are highly valued by customers particularly for their outstanding innovation, and the company continuously works with customers to develop “custom brands” and category management programs.

About Southwest Mezzanine Investments II, L.P. (SMI II)
SMI II was formed to make $2 to $6 million subordinated debt investments in middle-market companies seeking capital to accelerate growth or finance add-on acquisitions. 

In evaluating potential investments, SMI II is interested in companies with enterprise values in excess of $10 million, a history of profitable operations and possessing meaningful competitive advantages.  SMI II seeks to make investments in companies with or without an equity sponsor.

Growth Capital Partners, L.P. Securities offered through GCP Securities, Inc. member FINRA – SIPC

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