Non-Core Division

In June 2005, Trinity Hunt purchased DMX Music, a subscription music provider for businesses, from its publicly traded parent. In the years prior to the acquisition, DMX had been led by multiple CEOs, acquired, but not integrated, a competitor and ultimately was orphaned by its corporate parent when DMX failed to meet financial performance expectations. Trinity Hunt teamed with the seasoned media and entertainment executives at Capstar Partners to provide operational oversight and position the company for future growth. During the first year of operation, Trinity Hunt and Capstar sold off non-core assets, streamlined SG&A expense, rationalized capital expenditures and enhanced customer service (thereby reducing client churn). As a result of these actions, DMX generated considerably more cash flow and paid off the initial acquisition indebtedness of $50 million within 12 months. Shortly thereafter, Trinity Hunt agreed to sell its stake in the company back to the management team, providing an attractive outcome for both parties.