Alaris has recapitalized Brown & Settle Investments, a portfolio company of Breakwater Management. No financial terms were disclosed for the transaction. Headquartered in Northern Virginia, B&S is a full-service large-parcel site development contractor.
LOS ANGELES, FEBRUARY 2021 – Breakwater Management LP (“Breakwater”), a provider of flexible capital solutions to growing lower middle market companies, announced today that its portfolio company Brown & Settle Investments, LLC (“B&S” or the “Company”) recently completed a recapitalization transaction in partnership with Alaris Equity Partners Income Trust (“Alaris”). The Alaris investment resulted in a full repayment of Breakwater’s senior secured credit facility and preferred equity, and a meaningful return on Breakwater’s common equity position.
Breakwater invested in B&S in February 2019 in partnership with GHK Capital Partners LP (“GHK”) and the company’s founding executives. Breakwater was the exclusive provider of debt financing, and Breakwater and funds advised by Headway Capital Partners LLP (“Headway”) led the preferred equity financing to support the transaction.
Breakwater, GHK, Headway and the founders of B&S will continue to collectively hold a majority common equity interest in the Company following the Alaris investment.
Founded in 2003 and headquartered in Northern Virginia, the largest data center market in the world, B&S is a full-service large-parcel site development contractor. B&S’ comprehensive suite of services includes excavation, clearing, rock blasting, concrete, paving, and utility installation in Virginia, Maryland, West Virginia, and the Greater Washington D.C. area. B&S has established itself as one of the top providers of site development services for data centers, working on projects for blue chip end users. Since the initial investment, the Company has substantially grown revenue and EBITDA, and has made key additions to both management and the customer base.
Saif Mansour, Managing Partner at Breakwater, commented, “B&S has been a great example of our ability to provide debt and equity capital to fast-growing businesses that result in a positive outcome for all constituents.”
Darrick Geant, Partner at Breakwater, stated, “B&S has been an outstanding investment and is a testament to our strong partnership with CEO Chris Kete and the leadership team at the Company, and GHK. We look forward to continuing to support the Company through its next phase of growth.”
Based in Los Angeles, Breakwater Management LP provides flexible debt and equity capital to growing lower middle market companies. The firm aligns itself with committed management teams, owners, and sponsors, providing creative financing solutions tailored to meet individual company needs. Breakwater’s senior investment team has over 65 years of private company investing experience and has built the firm on a deep commitment to integrity, partnership and growth.