Circle Peak Capital's portfolio includes Hill & Valley LLC, the Steak-Umm Co., Cole Water Co. LLC and Chomp Inc. The company's primary focus is in consumer brands that can benefit from its capital and expertise as operating advisors--which is to say, companies that are under managed and/or under capitalized.

"Although Shari's is very well run, the financial opportunity can be enhanced through more flexible and additional capital and certain operational initiatives or ideas that complement the existing business," says Smith.

Shari's has not grown much over the past few years, says Smith, but that should change in coming years. The new ownership will look to expand through new store openings, store expansions and, possibly, franchising, which the company has eschewed in favor of corporate-owned stores. New store openings may also come through the acquisition of smaller restaurant chains with locations that could be converted to the Shari's brand, say Smith and Curtis.

In addition to Circle Peak and Shari's management, the new ownership group includes Falcon Investment Advisors and Sankaty Advisors LLC as equity partners. Others providing junior capital and mezzanine financing include Capital Source Finance LLC; Magnetar Capital LLC; Wells Fargo Foothill; Carlyle Mezzanine Partners LP, a division of the Carlyle Group.

Outside deal advisors included Daniel J. Eisner and Nigel Austin of Akin Gump Strauss Hauer & Feld LLP, and Kerry Kramp, a Circle Peak operating advisor with 30 years of restaurant management experience, most recently as CEO of Buffets, Inc. Kramp will be a senior operating advisor and non-executive board member for Shari's. Additional advisors on the Shari's acquisition included KPMG, Marsh, Gaiatech, Foster Pepper, the Hale Group, and Mount Vernon Strategies.