Investing in Water Infrastructure Development: A Conversation with Raul A. Deju, Partner at Brightstar Capital Partners

At Brightstar Capital Partners, we have a sharp focus on investing in and growing the value of middle market companies. A vital element of our value-creation model is the industry expertise that our roster of Senior Partners brings to our investment process and our portfolio companies.

One of our Partners, Raul A. Deju, is the Chairman of Texas Water Supply Company, a Brightstar portfolio company that brings water to the fast-growing Texas Hill Country. Raul is also a Ph.D. Hydrologist graduate from the New Mexico Institute of Technology, and author of seven books including “Regional Hydrology Fundamentals”, “The Environment and its Resources”, and “A Planet in Conflict.” Below, I ask Raul to give his perspective on how private capital can help forge a sustainable future in water development.


  1. What is the present state of America’s water sources and systems and what are the key factors that will drive growth in environmentally conscious water infrastructure development in the US?

Americans are the world’s largest per-capita users of water. We use about 3 times as much water as an average European consumer and 6 times as much as an average Chinese consumer. Our water needs are served by a patchwork of over 50,000 public and private water systems, leading to fragmented and sometimes inconsistent water management. Even with all that demand, our average cost of water can be as low as pennies per gallon. So we place very heavy demands on our water infrastructure, but we don’t have consistent management policies or sufficient resources to invest in the proper maintenance and expansion of that infrastructure.

Forty percent of America’s water infrastructure is over 40 years old. As our population grows toward 400 million by 2050, supplying water represents both a public challenge and a private sector investment opportunity. Estimates indicate that to just rehabilitate the existing US water supply/treatment and delivery infrastructure will require in excess of $1 trillion over the next decade – and to improve the systems to best-in-class level would take well over $3 trillion.

Fortunately, our society is starting to value water as it should be valued, which creates a good climate for investment. People in urban areas are demanding the availability of good quality water and are willing to pay higher prices. In the past nine years the average price of water in the US has increased over 50% and such increases are likely to continue in the immediate future.

The global debate around climate change also has raised awareness of the topic of investment in water. Given the need to conserve water, many local systems are educating consumers about water-saving practices. Water systems across the country are also increasing the price of water to fund improvements to make their infrastructure more efficient and reliable.


  1. Why is private equity an appropriate vehicle for investment in water infrastructure? What can private capital do that public resources cannot do as well?

Federal and state governments generally play a small role in water investing. Opportunities for investments in water have expanded as local governments run short of cash and must turn to the private sector to fund upgrades, run local systems and meet environmental standards. Also, consolidation in the industry is accelerating.

Private equity firms have the capital to invest in infrastructure – along with deep expertise in consolidating and turning around businesses – so they’re well-positioned to help our American water systems achieve greater efficiency.

At the same time, water infrastructure is an attractive vehicle for pension funds and other investors who are seeking alternative investments that avoid the volatility of equity markets while providing greater yields than bonds. Demand for sustainable sources of quality water is growing, the price keeps improving, and there is expertise in the private equity space to create value through water investments.


  1. What are the most attractive areas for water investment: supply, distribution, treatment, client services, etc.?

Many fund managers now see the water space as an investment opportunity for the long-term on an essential commodity that is scarce in many regions.

For example, there are opportunities – especially in water-short areas where population is rapidly growing – to buy thousands of acres of land with viable water rights, aquifers, surface water access, and even small private water utilities that have been neglected. Opportunities also exist to invest in the efficient extraction of water from aquifers, the efficient use of surface waters, desalination, and even the re-use of treated water. Another opportunity is the consolidation of small water systems with large ones to create a larger company that can better deliver needed services. Or, one can invest in the infrastructure companies needed to repair and replace the current crumbling system and upgrade obsolete technologies.


  1. How are investors building scale in water infrastructure?

Investors are increasingly consolidating a myriad of water companies – many of which are really too small to operate effectively. These investors are finding it profitable to acquire a small water system that can become the “anchor” for combining other small units into a bigger structure, which can then be upgraded.

Other investors are agglomerating water supply sources in fast-growing metro areas and selling very long term supply contracts to producing entities that are becoming water-short because of the rapid growth in their area of service.


  1. What attributes must be present in a specific region or metro area (demographics, economic growth, public agency structure, etc.) to make it an attractive place to invest in its water development?

The best target areas for investment in water are those smaller systems that cannot meet the needs of their users, in areas where demographic growth and industrial use growth warrant price increases to pay back the investments needed to modernize existing water systems.

Economic development assistance and good working relations with regulatory bodies are also a must. The public and private sectors must collaborate to turn around our rapidly deteriorating water infrastructure – to make peoples’ lives better and increase the growth potential of our communities. There are things the private sector can do better, cheaper, and faster than the public sector, while the public sector can do some things that the private sector cannot. Through the right partnership, we can achieve success more effectively, faster and at the lowest cost to consumers. The private sector can create better service to customers with upgraded systems that are also operated in an environmentally friendly manner.

MEDIA CONTACT:

Zach Kouwe/Shree Dhond
Dukas Linden Public Relations
212-704-7385

The Middle Market: Where Shared Prosperity Deserves Cultivation

By Andrew S. Weinberg, Founder, Managing Partner & CEO, Brightstar Capital Partners

For the 2019 Milken Institute Global Conference, we asked speakers to consider what prosperity means. See their insights and share your thoughts using #MIGlobal. See more coverage on the Milken Institute LinkedIn page. This article originally appeared in the #PowerofIdeas. See the entire POI series.

More than ever, the business headlines and social media chatter seem to be dominated by the nation’s largest companies and biggest brands. From Elon Musk’s tweets, Levi’s IPO, and Disney’s acquisition of Fox, the big corporate powerhouses dominate our attention. To be sure, these companies have a sizable impact on the economy and are perceived to be the leaders when it comes to product innovation and corporate stewardship. But what is often overlooked is how important businesses in the middle market are to ensuring the prosperity we have experienced over the last 30 years is shared by as many as possible.

Big brands certainly move the markets, but we need to remember that the middle market (defined as companies with revenues between $10 million and $1 billion) accounts for more than one-third the nation’s GDP and total employment, according to the National Center for the Middle Market. They are also responsible for 60 percent of new jobs in the private sector. Employment at middle-market companies grew by 5.4 percent last year alone.

As private equity investors in founder-led and family-owned middle-market companies, we play a role in helping this under-recognized part of the economy thrive. A significant part of that role involves thinking carefully about how we can add value to a business not just by increasing the top line and bottom line but also by collaborating with management to plan for the long term by adopting and improving on the best global business practices. We see opportunity partnering with middle-market companies to move to the next level of social and corporate responsibility—focusing on all stakeholders, including the communities they operate in and the institutions that support them.

What is more, we’ve found that these businesses, especially ones that are family owned, are eager partners in ensuring their prosperity is shared by everyone. As we have evaluated hundreds of middle-market businesses over the years, we see a very real desire to invest heavily in innovation and disruption. In fact, with careful cultivation, these companies are in a unique position to more nimbly adopt progressive business practices or address societal inequalities through corporate initiatives. That results in prosperity not only for our investors and partners but also for employees, other stakeholders, and the surrounding community.

According to the US Chamber of Commerce Foundation, middle-market companies are the “life blood” of Corporate Social Responsibility (CSR). We cannot have shared prosperity without focusing more on these companies, as they tend to have a greater direct effect on the communities in which they operate and on individual employees and other stakeholders. Many middle-market companies are still family owned, with strong cultures and shared values that have led to both business success and community engagement. Part of our job as investors and partners is to make sure those values are preserved as we help take the company to the next level of growth.

A closer look at the corporate behavior of middle-market companies shows very encouraging signs. A recent report created by the RSM US Middle Market Business Index, in conjunction with Moody’s Analytics and the US Chamber of Commerce, found that 90 percent of middle-market companies are engaged in some form of CSR. These companies invest broadly in community organizations, education, children and youth issues, and other areas to support the prosperity of their local communities, combat inequalities, and improve their business environment. The same report found that 88 percent of middle-market companies are focused on diversity and inclusion, indicating a commitment to equitable business models and inclusive growth as well.

It is clear that businesses in the middle market are poised to employ ever progressive business practices in the future, but we, as stewards of capital, can play a significant role in helping them advance the prosperity of their communities and remain focused on the long term. In turn, these businesses will attract the next generation of business leaders, to whom a professional commitment to the well-being of society as a whole is increasingly important.

While the nation’s largest companies are vitally important to the economy, thought leaders, institutions, and investors shouldn’t ignore the importance of smaller companies in shaping our shared prosperity. With the right attention and support, we will only see the middle market grow as an economic force, as well as a source of innovation and a driver of shared prosperity.

MEDIA CONTACT:

Zach Kouwe/Shree Dhond
Dukas Linden Public Relations
212-704-7385
brightstar@dlpr.com

QualTek Expands Midwest Presence in Wireless Services with Acquisition of Vertical Limit

KING OF PRUSSIA, PA, April 1, 2019/PRNewswire/ – QualTek, a leading provider of turnkey solutions, including engineering, installation, fulfillment, recovery logistics and program management to the North American telecommunications and power sectors, is pleased to announce it has acquired Vertical Limit LLC, a highly-respected provider of infrastructure services to the wireless telecommunications industry. The acquisition of Vertical Limit continues QualTek’s expansion strategy across North America as demand from wireless customers and partners continues to grow with significant 5G expansion nationwide.

Founded in 2002 and headquartered in Wanamingo, MN, Vertical Limit has built a significant presence across the Midwest, Great Lakes and Rocky Mountain regions with a large customer base of major wireless carriers.

“Vertical Limit has built an impressive track record of high-quality service. We are very excited to welcome their employees and management team to the QualTek team,” said Scott Hisey, CEO of QualTek. “We continue to grow our employee base and geographic footprint in response to increasing demand from our customers across the telecommunications, infrastructure and power industries and the acquisition of Vertical Limit is an important part of our long-term strategy.”

“Joining QualTek will allow us to diversify our customer and geographic base while maintaining the high quality and safety standards that we are known for,” said Erik Bicknese, CEO of Vertical Limit. “We are excited to be able to leverage QualTek’s resources and knowledge base for the benefit of our employees and partners across North America.”

About QualTek
QualTek is one of the largest providers of turnkey services to the North American telecommunications, infrastructure and power industries. Through its 85 service locations and 4,000 dedicated professionals, QualTek provides its partners and clients with a range of services including engineering, construction, disaster recovery, project management, customer fulfilment, communications upgrades and infrastructure improvements. QualTek is a premier partner to some of the largest companies in the wireless, satellite, wireline and power sectors. For more information please visit www.qualtekservices.com.

About Vertical Limit
Vertical Limit is a provider of infrastructure services in the wireless telecommunications industry. The Company’s team of wireless experts plan, build, modify, and maintain wireless networks across North America. The Company is headquartered in Minnesota with offices in Colorado, Texas, Wisconsin, and Illinois. For more information please visit www.verticallimit.com.

MEDIA CONTACT:

Zach Kouwe
Dukas Linden Public Relations
212-704-7385

Brightstar Capital Partners Announces Promotions and New Hires

NEW YORK, NY, December 13thBrightstar Capital Partners (“Brightstar”), a private investment firm that partners with closely-held, family-owned middle market companies, has announced the promotions of Renee Noto to President, Matthew Allard to Partner and Ronak Amin, Ross Kilroy and Lindsey Tannenbaum to Principals. The firm also announced that Reidar Brekke has joined as a Senior Partner and Jarrett Arkin as a Vice President.

On making the announcement, Andrew Weinberg, Founder, CEO and Managing Partner said: “These promotions and appointments further ensure the firm’s leadership is well positioned as we continue to grow and pursue new investment opportunities in the middle market.”

Mr. Weinberg continued: “Renee has been an invaluable partner to our team since we launched Brightstar. This announcement is a testament to her depth of experience and leadership. I’m excited to continue to work with her as we grow Brightstar.”

Matthew Allard has been with Brightstar from its early days and has been instrumental in structuring and leading many of the firm’s investments. He serves as the Vice Chairman of the Board of QualTek and a Board member of Texas Water Supply Company, both Brightstar portfolio companies.

“I have had the pleasure of working with Matt since 2003 and his strong values, experience and investment acumen continue to enhance the value we bring to our portfolio companies.” said Mr. Weinberg.

Announcing the promotions of Mr. Amin, Mr. Kilroy and Ms. Tannenbaum to Principal, and appointment of Mr. Arkin as VP Mr. Weinberg noted: “These promotions and new appointment mark the end of a fantastic year for Brightstar and represent the continued growth and strength of our firm. Ronak, Ross and Lindsey have each played a key role in our investments, adding significant value to our portfolio companies on behalf of our investors and partners. They demonstrate on a daily basis the skills and characteristics that we value as a firm and I’m proud to be able to recognize this by advancing them to Principal.”

Brightstar is also pleased to announce that Reidar Brekke has joined as Senior Partner. Since 2003, Mr. Brekke has worked closely with Mr. Weinberg on investments and management in the transportation and logistics sectors. He also helps expand Brightstar’s relationship network in the Southeastern U.S.

“As opportunities in the middle market continue to grow, we have correctly positioned Brightstar to take advantage of these opportunities and Reidar expands both our sector expertise and geographic footprint,” said Mr. Weinberg. “We’re thrilled to welcome him to the firm.”

About Brightstar Capital Partners
Brightstar Capital Partners is a private equity firm focused on investing in closely-held companies. Brightstar seeks partnership opportunities with exceptional management teams where it is uniquely positioned to drive value creation. Brightstar seeks control investments and employs an operationally intensive approach to investing that leverages its extensive experience and relationship network. For more information please visit www.brightstarcapitalpartners.com.

MEDIA CONTACT:

Zach Kouwe/Shree Dhond
Dukas Linden Public Relations
212-704-7385

QualTek Expands Suite of Services in the Telecommunications and Power Industries with Acquisitions of Recovery Logistics, LLC and Site Resources, LLC

KING OF PRUSSIA, PA, Oct. 16, 2018 – QualTek USA, LLC (“QualTek” or the “Company”), a leading provider of turnkey solutions, including engineering, installation, fulfillment and program management to the North American telecommunications and power sectors, announced today that it has completed the purchase of Recovery Logistics, LLC (“RLI”) and Site Resources, LLC (“SRI”). These companies will expand QualTek’s comprehensive suite of services and support in the telecommunications and power utility sectors.

RLI, headquartered in Apex, North Carolina, is a leading provider of business continuity and disaster recovery services, including a wide range of logistics, maintenance and repair services to the telecommunications and power utility sectors. SRI provides cell site installation, upgrades, repairs and maintenance of wireless network infrastructures and works in conjunction with RLI on disaster relief services.

“We are very excited to acquire a company that expands our full suite of turnkey services, providing critical support to customers across the power and telecommunications industries,” said QualTek’s CEO, Scott Hisey. “RLI/SRI has an impeccable reputation in the industry and brings a comprehensive and highly unique approach to solving complex problems for our customer base. We believe there is a significant opportunity to leverage their platform to QualTek’s customers while continuing to build out the full suite of services to the power industry.”

Tom Mix will remain CEO of RLI under a newly created division of QualTek. Tom said, “We’re thrilled to be joining forces with QualTek, which will help take our business to the next level by expanding our access to services and expertise as well as diversifying our customer base, existing workforce and geographic footprint.”

About QualTek
Based in King of Prussia, PA, QualTek is a leading provider of turnkey solutions, including engineering, installation, fulfillment and program management, to the North American telecommunications and power sectors. The company provides end-to-end infrastructure services solutions to the wireline (NX Utilities and NX Utilities Canada), wireless (Empire Telecom and Velocitel), and residential and commercial fulfillment (QualSat, ACI and Premier) segments of the market. With experienced management, qualified field technicians, state-of-the-art data management systems and a dedicated network of vendors, QualTek is a premier partner to some of the largest leading companies in the telecommunications and power industries. For more information please visit www.qualtekservices.com.

About RLI/SRI
RLI is a leading provider of business continuity and disaster recovery operations for the telecommunications and power utility sectors. RLI helps businesses recover from unplanned events, including hurricanes, winter storms and floods. SRI is a provider of wireless services, including cell site installation, upgrades, repairs and maintenance of wireless network infrastructures and works in conjunction with RLI on disaster relief services. For more information visit www.recoverylogistics.net.

MEDIA CONTACT:

Zach Kouwe/Shree Dhond
Dukas Linden Public Relations
zkouwe@dlpr.com/shree@dlpr.com
212-704-7385

Mergers & Acquisitions: 10 PE firms with fresh capital

Slideshow 10 PE firms armed with fresh capital
By
Demitri Diakantonis
Mary Kathleen Flynn

1 / Private equity fundraising has slowed down in 2018, after a strong 8-year run. The amount of capital raised annually for new funds by U.S. private equity firms increased more than threefold from 2010 (when nearly $71 billion was raised) to 2017 (when $243 billion was raised). But U.S. PE firms closed only $69 billion worth of new funds during the first half of 2018, a far cry from 2017 and on pace for a six-year low, according to Pitchbook. Here’s a look at 10 PE firms that have succeeded in raising new funds recently despite the slowdown, including the Carlyle Group (Nasdaq: CG), PPC Partners, Soundcore Capital Partners and Sycamore Partners. The fundraising data is culled by Mergers & Acquisitions from a variety of sources, including SEC filings, Thomson Reuters and company press releases. For fundraising news on an on-going basis, see our weekly column, PE fundraising scorecard: Audax and Advent.

2 / Brighstar Capital Partners
Middle-market private equity firm Brightstar Capital Partners, founded by Andrew Weinberg, closed its inaugural fund at $710 million. New York-based Brightstar, which invests up to $250 million in businesses, has already invested in three portfolio companies: logistics technology provider Global Resale, QualTek USA LLC, a provider of engineering, installation, fulfillment and program management, and water supplier Texas Water Supply Co.

For full article:
Click here.

MEDIA CONTACT:

Zach Kouwe / Shree Dhond
Dukas Linden Public Relations
212-704-7385
brightstar@dlpr.com

Brightstar Capital Partners Closes Acquisition of QualTek and Two Concurrent Add-On Acquisitions

– Addition of NX Canada Wireline Business and Premier Cable Fulfillment Expands QualTek’s Range of Telecommunications Services –

NEW YORK, July 19, 2018 – Brightstar Capital Partners (“Brightstar”), a private investment firm that partners with closely-held, family-owned middle market companies, today announced that it has completed the previously announced acquisition of QualTek USA, LLC (“QualTek” or the “Company”), in partnership with QualTek senior management. Following its transaction with Brightstar, QualTek completed the acquisitions of two additional businesses: NX Canada, a leading wireline installation and engineering services company in Canada, and Premier CC Inc., a full-service cable and network installation company with operations across the United States.

The add-on acquisitions will complement and strengthen QualTek’s range of solutions for the North American telecommunications sector, which include engineering, installation, fulfillment and program management. QualTek is led by CEO Scott Hisey and its senior management team, who are also investors in the Company.

NX Canada provides a range of telecommunications installation and engineering services, including coaxial and fiber optic services, repair and maintenance, sweep and certification services, noise reduction and plant hardening services. It serves a large and diverse customer base in the Canadian market.

Premier CC specializes in providing cable and network fulfillment services, consisting primarily of installation, configuration and repair services for residential and commercial customers. Its installation services support VoIP, high speed internet and data, video/digital and home security.

“We are excited that we have already begun to deliver on our growth strategy, immediately after completing the transaction with Brightstar and our senior management team,” said Mr. Hisey. “The growth capital and strategic resources provided by Brightstar have enabled us to complete the value-added acquisitions of NX Canada and Premier, which will expand QualTek’s geographic presence, diversify our customer base, and reinforce our leadership position as a provider of a wide array of solutions for the telecommunications industry.”

“QualTek is an exceptionally well-managed company that has created a solid platform for serving the dynamic, fast-growing wireless and wireline communications market. We are excited by the Company’s growth prospects, as demonstrated by the NX Canada and Premier acquisitions, and we look forward to working with the QualTek team to build a major player in the business of providing solutions to the telecommunications sector,” said Andrew Weinberg, Brightstar’s Founder and Managing Partner.

About Brightstar Capital Partners
Brightstar Capital Partners is a private equity firm focused on investing in closely-held companies. Brightstar seeks partnership opportunities with exceptional management teams where it is uniquely positioned to drive value creation. Brightstar seeks control investments and employs an operationally intensive approach to investing that leverages its extensive experience and relationship network. For more information please visit www.brightstarcapitalpartners.com.

About QualTek
Based in King of Prussia, PA, QualTek is a leading provider of turnkey solutions, including engineering, installation, fulfillment and program management, to the North American telecommunications and power sectors. The company provides end-to-end infrastructure services solutions to the wireline (NX Utilities and NX Utilities Canada), wireless (Empire Telecom and Velocitel), and residential and commercial fulfillment (QualSat, ACI and Premier) segments of the market. With experienced management, qualified field technicians, state-of-the-art data management systems and a dedicated network of contractors, QualTek is a premier partner to some of the largest leading companies in the telecommunications and power industries. For more information please visit www.qualtekservices.com.

MEDIA CONTACT:

Zach Kouwe/Shree Dhond
Dukas Linden Public Relations
212-704-7385
brightstar@dlpr.com

Brightstar Capital Partners to Acquire Leading Telecommunications Services Provider QualTek in Partnership with Management

– New capital will position QualTek to take advantage of increasing 5G wireless and fiber optic deployment by the telecommunications sector –

NEW YORK, June 13, 2018 – Brightstar Capital Partners (“Brightstar”), a private investment firm that partners with closely-held, family-owned middle market companies, is pleased to announce it has signed a definitive agreement to acquire QualTek USA, LLC (“QualTek” or the “Company”) in partnership with senior management. Based in King of Prussia, PA, QualTek is a leading provider of turnkey solutions, including engineering, installation, fulfillment and program management, to the North American telecommunications and power sectors.

The transaction, which is expected to close in July, represents the third platform investment for Brightstar since the firm was founded in 2015. QualTek’s senior management team, led by CEO Scott Hisey, is committed to investing a significant portion of their proceeds as rollover equity in the transaction and will continue to lead the Company through its next phase of growth.

“We are very excited to partner with Brightstar, who will provide us with growth capital to continue leveraging our industry-leading execution track record and rigorous safety standards to serve our customers as they build the next generation of wireless and wireline communications systems,” said Mr. Hisey. “Brightstar’s team has deep experience and long-term relationships within the telecommunications industry as well as a history of creating value in closely-held, private companies which will be instrumental as we continue to meet the growing needs of our customers and expand our geographic footprint.”

“Scott and the entire QualTek team have established long-standing relationships with blue-chip telecommunications companies that are increasingly demanding their high-quality turnkey solutions,” said Andrew Weinberg, Brightstar’s Founder and Managing Partner. “We look forward to supporting Scott and his team as they continue executing on their growth initiatives. We were drawn to QualTek’s entrepreneurial management team and the opportunity to provide our industrial services expertise and relationships and other strategic, operational and financial resources to its platform.”

“Advances in technology have driven a massive demand for faster and more reliable wireless and wirelinecommunication networks and QualTek is a leader in serving this dynamic segment of the market,” said Matthew Allard, Brightstar Managing Director. “QualTek’s passionate management team combined with our operational experience and relationship network makes for a tremendous partnership.”

Financing for the transaction is being arranged by Fifth Third and PNC. Jefferies and Stifel are serving as financial advisors to Brightstar and Winston & Strawn LLP as legal advisor. Blank Rome LLP is serving as legal advisor to QualTek and Fox Rothschild LLP as legal counsel to the Company’s management team.

About Brightstar Capital Partners

Brightstar Capital Partners is a private equity firm focused on investing in closely-held companies. Brightstar seeks partnership opportunities with exceptional management teams where it is uniquely positioned to drive value creation. Brightstar seeks control investments and employs an operationally intensive approach to investing that leverages its extensive experience and relationship network. For more information please Click Here.

About QualTek

Based in King of Prussia, PA, QualTek is a leading provider of turnkey solutions, including engineering, installation, fulfillment and program management, to the North American telecommunications and power sectors. The company provides end-to-end infrastructure services solutions to the wireline (NX Utilities), wireless (Empire Telecom and Velocitel), and residential and commercial fulfillment (QualSat and ACI) segments of the market. With experienced management, qualified field technicians, state-of-the-art data management systems and a dedicated network of contractors, QualTek is a premier partner to some of the largest leading companies in the telecommunications and power industries. For more information please Click Here.

MEDIA CONTACT:

Zach Kouwe/Shree Dhond
Dukas Linden Public Relations
212-704-7385
brightstar@dlpr.com

The Great Wealth Transfer: Opportunities for middle market companies and investors by Andrew Weinberg

2018 Milken Institute Global Conference, LOS ANGELES, CALIFORNIA, May 2, 2018 – For the 2018 Milken Institute Global Conference, we asked speakers to identify one event that has changed their industry and the world in recent memory. See their insights and share your thoughts using #MIGlobal. See more coverage on the Milken Institute LinkedIn page.

Middle-market companies have often been described as the growth engines of the U.S. economy, and justifiably so.

It is estimated that such businesses, many of which are privately held and family owned, contribute about half of the nation’s GDP and employ more than 60% of the workforce. However, many of these growth vehicles soon may have new drivers, due to the enormous generational transfer of wealth that is expected to occur over the next few years.

This unprecedented transfer of wealth and ownership will provide significant opportunities – both for the new middle-market business owners to rethink and retool their approaches to operations, finances and growth– and for investors to participate in the resulting value creation. The size of the opportunity is evident from the sheer number of middle market enterprises in the U.S. The country is home to an estimated 200,000 middle-market companies, defined as those with revenues between $10 million and $1 billion. Within that group, there are roughly 32,000 businesses at the upper end of the scale, with revenues from $50 million to $1 billion, according to Dunn & Bradstreet. Such middle-market companies are largely in private hands but wield substantial economic clout, as they represent about 16 times the number of public companies with the same revenue profile.

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MEDIA CONTACT:

Zach Kouwe/Shree Dhond
Dukas Linden Public Relations
212-704-7385
brightstar@dlpr.com

World Economic Forum: Fueling the US economy’s middle market growth engine by Andrew Weinberg

NEW YORK, April 9, 2018 – Large, publicly traded companies in the US tend to attract the lion’s share of media, academic and public policy attention. We read and watch something about Facebook, Amazon, Google, Boeing, GE or other Fortune 500 companies on a daily basis.

With all the attention being paid to the large-cap, multinational public companies, U.S. middle market firms tend to fly under the radar. The lack of emphasis and support for middle market enterprises is not unique to the US. One of the few markets where this is not the case is Germany, which celebrates its so-called “Mittelstand” companies. These businesses account for more than 60% of the country’s jobs and are highly regarded as investors in facilities, equipment and talent.

In fact, middle market companies are vital contributors to most developed countries’ GDP, and providing more support for such companies in the US is both a significant challenge and a compelling opportunity. Middle market businesses should be recognized by investors and policy makers for what they truly are – powerful engines of the US economy – and more can and should be done to help these businesses thrive and grow through the application of capital, operational expertise and a sharp strategic focus.

For complete article:
Click Here

MEDIA CONTACT:

Zach Kouwe/Shree Dhond
Dukas Linden Public Relations
212-704-7385
brightstar@dlpr.com