MidOcean Partners, a New York-based alternative asset manager specializing in middle-market private equity, structured capital and alternative credit investments, has made a preferred equity investment in GridHawk, a provider of damage prevention services for critical utility infrastructure across the United States. MidOcean’s non-control growth capital investment will provide GridHawk with the resources to further expand its service offering and geographic footprint while continuing to provide quality service to its customers. Terms of the transaction were not disclosed.
MidOcean’s investment in GridHawk is the firm’s first investment from its newly-launched structured capital solutions strategy. The structured capital solutions strategy combines the sector expertise, thematic focus and operating advisor network of MidOcean’s private equity platform with the structuring and pricing discipline of MidOcean’s alternative credit business to deliver creative financing solutions and non-control capital to middle-market companies.
“We are extremely pleased to be partnering with GridHawk and Cascata on the first transaction in our new strategy targeting structured capital investments,” Graham Clempson, vice chairman of MidOcean Partners, said. “GridHawk’s strong organic growth, stable business model and relentless focus on customer service are emblematic qualities of the kinds of businesses in which we seek to invest.”
“Having followed GridHawk for some time as part of our utility services investment thematic, we have been consistently impressed with the company’s leadership team and differentiated service model,” Eric Roth, managing director at MidOcean Partners, said. “Their understanding of customer pain points and crisp execution ability position them well to be the provider of choice in the future.”
“Since day one, our strategy has been dedicated to delivering superior performance for our customers,” Paul Baugher, co-founder and CEO of GridHawk, said. “We carefully select contracts that align with our ability to maintain our core values. Partnering with MidOcean allows us to enhance our capabilities through strategic investments, ensuring we continue to meet and exceed our customers’ evolving needs.”
“GridHawk has experienced significant growth since its inception, becoming one of the top five providers of damage prevention services in the U.S.,” Chris Cuzalina, co-founder of GridHawk and managing partner of Cascata Capital, said. “MidOcean’s flexible structured capital solution and strong belief in our industry and business model made them an ideal non-control partner to support our ongoing growth.”
BMO provided senior debt financing in conjunction with the recapitalization. Solomon Partners advised GridHawk on the transactions.
