The world's largest independent manufacturer of synthetic diamonds used in oil and gas drill bits. Working with management, Castle Harlan recapitalized this company in February 1997 in a transaction in which CHPII purchased a 60 percent ownership and management and employees retained 40 percent. In the course of the next year, US Synthetic doubled the size of its production capacity and increased its market share, as the drilling industry grew rapidly and as diamond bits increasingly replaced traditional tungsten drilling bits. CHPII sold US Synthetic in May 1998 for $165 million, providing an annual compound return on investment of more than 178 percent over the fifteen months of ownership, while enabling management and employees to retain significant ownership in the Company.