Falconhead Capital has its eye on the major competitors of its latest acquisition, Growing Family, a St. Charles, Mo.-based company which provides photographs to parents of newborns at hospitals. Falconhead acquired the company in a private sale from New York-based Sentinel Capital Partners and Providence, R.I.-based Nautic Partners. Terms were not disclosed. It is the third investment from Falconhead's second fund, Falconhead Capital Partners II LP.

The New York-based shop also plans to perk up marketing for the company's photography services. Growing Family has an army of 1,750 MSRs, or Mom Service Representatives, who show up at hospitals, asking to take pictures of newborns and their parents. They offer parents the option of posting the picture on the Growing Family Web site for about $15. The company also sells family commemorative photographs, birth announcements and gifts, and has $78.4 million in annual revenues, according to Capital IQ.

There are three or four competitors of Growing Family that Falconhead would consider acquiring, including That's My Baby, said Steve McNeely, a Falconhead operating partner. The buyout shop will also evaluate other photography-related businesses. Falconhead acquired the company because it fit with the firm's emphasis on companies in the leisure lifestyle space. Growing Family has exclusive contracts with 2,200 of the approximate 3,000 birthing hospitals nationwide, McNeely said.