Braemont Capital, an emerging manager we’re watching closely, announced its first investment earlier this week: It joined venture capital firm JettyCove in recapitalizing RedTeam Software to support the construction management software provider’s growth, including the add-on of Paskr, which develops complementary software.
As previously reported by affiliate title Buyouts’ Kirk Falconer, Braemont was founded last year by Robert Covington, a former partner with RedBird Capital Partners. The Dallas-based investment firm is a “relationship-driven” investor of growth equity aimed at defensive niches in enterprise (B2B) and consumer (B2C) end markets.
Braemont views RedTeam as a platform company, with more add-ons likely. Back in 2020, RedTeam bought Fieldlens, another software developer in the sector. PE Hub interviewed Braemont partner Jeff Volling, who led the firm’s investment in RedTeam. Volling held previous roles at Bessemer Investors, AEA Investors, Madison Dearborn and Credit Suisse.
“This investment checks a lot of the boxes that we look for at Braemont and the strategy that our platform is set up to execute,” Volling explained. Construction is a sector in which “there is secular growth based on the adoption of digital technologies.”
Redteam is “at an inflection point,” Volling added. About the investment, he noted: “We feel like this will accelerate the company’s growth and provide a set of solutions to the target market.”
When asked about overall economic challenges, including supply-chain disruption, inflation and staffing challenges, Volling said: “Those trends are very real and prevalent in the construction industry, but I think if anything, they highlight the need for technology. There is a premium on efficiency, in terms of the ability to manage supply chain and labor efficiently, and tech tools like RedTeam, Paskr and Fieldlens are valuable for contractors as they try and navigate these challenges.”