Eccles Family Backs New Investment Firm, The Cynosure Group

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Co-Founded by Randal Quarles, Spencer P. Eccles and Herbert E. “Bud” Scruggs, the Group will Source, Evaluate and Manage Direct Equity Investments

The Cynosure Group
Cynosure will invest in small and mid-size firms that have strong management and, typically, good cash flow.

We are pleased to announce the establishment of a direct investment platform — The Cynosure Group — to source, evaluate, and manage direct private equity investments.

The Cynosure Group is a Salt Lake City based company formed to bring together the resources of a number of the country’s most significant family offices, including the Eccles family of Salt Lake City, to make long-term equity investments in private companies across a range of industries. The name of the firm, Cynosure, commemorates the sailing vessel which brought David Eccles and his family to America in 1863 from their home in Scotland. David Eccles went on to become one of the greatest entrepreneurs, industrialists and investors in the history of the Western United States.

Cynosure will be headed by Randal K. Quarles, former Under Secretary in the Treasury for the George W. Bush Administration. Joining him as co-founders and managing directors will be Spencer P. Eccles and Herbert E. “Bud” Scruggs. (See below for biographical information.)

Mr. Quarles explained, “Cynosure will invest in small and mid-size firms that have strong management and, typically, good cash flow. The aim is to invite a number of investors to join with us who will bring a variety of resources and feel strongly engaged to give their best support to the portfolio companies. Our approach will be to support management’s growth plans with capital, expertise, and a long-term view to value creation.”

Mr. Scruggs provided additional background: “We have discussed establishing this type of firm for several years. The timing has finally come together with the convergence of Randy’s return to Utah from Washington, D.C.; Spencer’s fulfillment of his term in public service; and, my return from Australia.”

Added Mr. Scruggs, “We have a great team. Spencer possesses an unparalleled understanding of the driving forces in the increasingly strong Utah economy combined with a background in venture capital, technology companies and the expanding capacity of the Intermountain West as a global exporter. Randy is one of the leading experts in the world regarding economic policy and brings global expertise on financial institution mergers and acquisitions. My own career is in corporate turn-arounds, telecom, and natural resources – not to mention government and politics. I believe we have a lot to offer the small and mid-size firms we plan to invest in, as well as the families with whom we will co-invest.”

After his successful tenure in public service, as Executive Director of the Governor’s Office of Economic Development, Mr. Eccles is looking forward to his return to the private sector. “It has been a great honor to work with Governor Herbert and our economic development team as we navigated the difficulties of the Great Recession and brought Utah to the strong position it is in now.”

“Our family has a 150-year history of taking influential minority positions in companies with strong growth prospects and helping those companies become leaders in their industries,” he added. “The philosophy of our investments has been to involve a number of co-investors. And, in the early 1900s, the Eccles were among the first to give managers with little capital substantial equity positions. We look forward to building on that legacy with Cynosure.”

The Cynosure Group will be located in the historic First Security Building at 79 South Main Street in Salt Lake City.

Biographical Sketches of Managing Directors

Randal K. Quarles is the former Under Secretary of the Treasury in the George W. Bush Administration. Before founding Cynosure, Mr. Quarles was a longtime partner of The Carlyle Group, one of the world’s largest private equity firms. In addition to his record as a successful investor, he has long experience at the highest levels of the international financial architecture, having represented the U.S. for many years in the G7, G20, and Financial Stability Forum, and having served the U.S. as Executive Director of the International Monetary Fund, Executive Director of the European Bank for Reconstruction and Development, and as a member of the Board of Directors of the Overseas Private Investment Corporation. Earlier in his career, Mr. Quarles spent many years working as a partner at the Wall Street law firm of Davis Polk & Wardwell, where he was the co-head of the firm’s Financial Institutions Group and advised on transactions that included a number of the largest financial sector mergers ever completed. He has served as a member of the board of directors of numerous public and private companies. Mr. Quarles is a graduate of Columbia University and the Yale Law School.

Spencer P. Eccles recently announced the completion of his five-year commitment as the Executive Director of the Governor’s Office of Economic Development (GOED) for the State of Utah which oversees statewide business, tourism and film development, international trade, rural economic development, and the Utah Health Exchange. During his tenure, GOED facilitated the expansion or relocation of strategic anchor companies in Utah's urban and rural counties – companies that are projected to create more than 32,500 jobs and $2.1 billion in new state revenue over the next decade. Mr. Eccles will remain an advisor to the Governor on economic development issues and has been involved on numerous public and private boards, including as chair of the Governor’s Economic Council, vice-chair of the Utah Science Technology and Research (USTAR) initiative, vice-chair of the STEM Action Center, and a member of the Utah Capital Investment Board (UCIB), which supports venture capital investment firms to help grow Utah’s innovative companies. Previously, Mr. Eccles provided leadership to web-based software and materials technology companies in the U.S. and abroad. He was formerly affiliated with Wells Capital Management (Wells Fargo Bank). In 1997, the Salt Lake Organizing Committee for the 2002 Olympic Winter Games tapped Mr. Eccles to develop and oversee the premier Olympic downhill events as well as all of the alpine Paralympic competitions. Mr. Eccles received his MBA from BYU’s Marriott School of Management and his BA in history from the University of Utah.

Herbert E. “Bud” Scruggs has over a decade of experience in the senior leadership at Leucadia National Corporation. He has an extensive background advising some of the wealthiest families in the world, including working in Perth, Australia as CEO of The Metal Group, the private holding company of Andrew Forrest, and as President and CEO of Huntsman Financial Corporation. He is a director of Fortescue Metals Group, one of the largest mining companies in Australia, and has extensive experience as a director of both public and private companies, including American Investment Bank, Barbados Light and Power, Poseidon Nickel, Deseret Morning News, Empire Insurance, and MK Gold – including experience on multiple audit and executive committees. Previously, Mr. Scruggs served as Chief of Staff to Governor Norman Bangerter and was a co-founder and partner with Governor Michael Leavitt of the Public Affairs Advisory Group. Mr. Scruggs received his JD from BYU’s J. Reuben Clark Law School and a degree in Political Science from Brigham Young University.

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