MidOcean Partners Provides Structured Capital to Fund the Growth of GridHawk, a Premier Provider of Utility Damage Prevention Services
May 23 2024 - 7:30AM
Business Wire
Marks the Inaugural Investment from MidOcean’s
Structured Capital Solutions Platform
MidOcean Partners (“MidOcean”), a premier New York-based
alternative asset manager specializing in middle-market private
equity, structured capital, and alternative credit investments,
today announced it has made a preferred equity investment in
GridHawk Holdings (“GridHawk” or the “Company”), a premier provider
of damage prevention services for critical utility infrastructure
across the U.S. 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 the highest 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. 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," said Graham Clempson, Vice Chairman of MidOcean
Partners.
“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. Their understanding of customer pain points and crisp
execution ability position them well to be the provider of choice
in the future,” added Eric Roth, Managing Director at MidOcean
Partners.
Founded in 2019 by industry veteran Paul Baugher, in partnership
with independent sponsor Cascata Capital, GridHawk offers utility
locating, watch & protect, advanced locating, leak detection,
infrastructure mapping, and other damage prevention services for
high consequence subsurface infrastructure including natural gas,
electric, telecom, water, and sewer utilities nationwide.
GridHawk’s leading position in the damage prevention industry is
underpinned by its customer-centric approach and training geared
towards improving locate accuracy and on time performance to
decrease damage rates. The Company currently serves 19 states under
two brands, GridHawk and LineQuest.
Mr. Baugher, co-founder and CEO of GridHawk, commented, “Since
day one, our strategy has been dedicated to delivering superior
performance for our customers. 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.”
Chris Cuzalina, co-founder of GridHawk and Managing Partner of
Cascata Capital, added, “GridHawk has experienced significant
growth since its inception, becoming one of the top five providers
of damage prevention services in the U.S. 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.
About MidOcean Partners MidOcean Partners is a premier
New York-based alternative asset manager specializing in
middle-market private equity, structured capital, and alternative
credit investments. Since its inception in 2003, MidOcean Private
Equity has targeted investments in high-quality middle-market
companies in the consumer and business services sectors. MidOcean
Credit Partners was launched in 2009 and currently manages a series
of alternative credit strategies, collateralized loan obligations
(CLOs), and customized separately managed accounts.
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MidOcean Investor Relations:
Investorrelations@midoceanpartners.com
MidOcean Media: Amanda Shpiner/Grace Cartwright
Gasthalter & Co. (212) 257-4170 midocean@gasthalter.com