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.

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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.

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Zach Kouwe / Shree Dhond
Dukas Linden Public Relations
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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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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.

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

Mergers and Acquisitions: “Greatest generational transfer of wealth ever seen” benefits Brightstar’s $710M debut fund by Mary Kathleen Flynn

NEW YORK, April 9, 2018 – Middle market private equity firm Brightstar Capital Partners recently closed its inaugural fund at $710 million. New York-based Brightstar, which invests up to $250 million in businesses, has already invested in two portfolio companies: logistics technology provider Global Resale and water supplier Texas Water Supply Co. We asked managing partner Andrew Weinberg to tell us more about the firm’s investment thesis and the opportunities he sees for M&A this year.

Why is now a good time to launch a new PE firm?
Brightstar Capital Partners was founded in 2015, and we recently closed on more than $710 million for our inaugural private equity fund program. The timing of our close takes place against the backdrop of what will most likely be the greatest generational transfer of wealth ever seen to date. Estimates for this wealth transfer in the U.S. alone range from $10 trillion over the next decade to $25-30 trillion in the next 25-30 years. As family and closely-held businesses navigate this wealth transfer they will be faced with challenges arising from an ever-changing operating environment, pressures to maintain sustainable growth and their competitive positions, not to mention the inherent issues associated to the ownership group.

There are roughly 200,000 companies in the U.S. with revenues from $10 million to $1 billion, most of which are closely held or family controlled. Within the middle-market universe, there are 32,000 businesses with revenues between $50 million and $1 billion, and these companies are vital to the U.S. economy, representing 16 times the number of public companies with the same revenue profile.

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

Private Equity Wire: Brightstar’s ‘us and us’ investment model to mid-market US businesses strikes note with investors by James Williams

NEW YORK, April 5, 2018 – In the US alone there are more than 200,000 middle market companies with revenues between USD10 million and USD1 billion. If one narrows that range to USD50 million to USD1 billion in revenue, there are 32,000 businesses, with around 15 times as many private businesses to public businesses.

That’s a pretty big engine of economic growth and one that Brightstar Capital Partners is training its investing and operating talents on to seek out good US businesses with a clear growth trajectory.

“Our strategy has always been about how to be more than a capital provider to middle market, closely held companies, either family-owned or backed by entrepreneurs by adding a second component; namely, how to provide much needed operational and strategic resources to those companies by virtue of our partnership,” explains Andrew Weinberg (pictured), Brightstar’s Founder and Managing Partner.

These types of companies face many challenges going forward, from next generation leadership, to attracting executive talent beyond the founding family to responding to needs in the market. Data suggests there is an estimated USD30 trillion to USD40 trillion of wealth that will be passed on from the baby boomer generation in the US to their heirs over the next 25 to 30 years.

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

Brightstar Capital Partners Raises Over $710 Million Inaugural Private Equity Fund Program

NEW YORK, March 16, 2018 – Brightstar Capital Partners, a private equity firm that invests in closely held middle market companies, is pleased to announce the successful closing of Brightstar Capital Partners’ inaugural fund program in excess of $710 million of institutional capital from investors worldwide.

The sum is one of the largest first-time private equity fundraises in the last year, according to data from PitchBook. Commitments come from a diverse set of institutional investors including several university endowments, high net worth investors, pension funds, private foundations, family offices and insurance companies.

Andrew Weinberg, Brightstar’s Founder and Managing Partner, said: “We are gratified by the enthusiasm and extraordinary level of support the institutional investment community has given us throughout this process, especially for an inaugural fund. Our team is poised to continue executing on our operational value-add strategy for our new and existing portfolio companies.”

Brightstar’s investment strategy is focused on control-oriented investments in North American middle market companies. The firm invests in closely held or family-owned businesses where it can leverage the operating and investment experience of its team to drive significant value over the long term.

Brightstar has already deployed capital from its funds in two investments. The first was a majority stake in Global Resale LLC, an Austin-based company that is a leading, global provider of aftermarket services and reverse logistics, focused on resale, buyback and disposition of technology devices. In October 2017, Brightstar closed an investment in Texas Water Supply Co., which operates approximately 40 groundwater wells serving San Antonio and the surrounding Hill Country region. The firm’s investment will help Texas Water Supply provide reliable and sustainable water to the fast-growing region.

“Brightstar is the preferred partner to help take family-owned and closely held businesses to the next level as they continue to grow and pass through generational ownership,” added Mr. Weinberg.

Eaton Partners served as the exclusive placement agent and Simpson Thacher & Bartlett LLP served as legal counsel.

About Brightstar Capital Partners

Brightstar Capital Partners is a private equity firm focused on investing in closely held middle market companies. Brightstar seeks partnership opportunities with exceptional management teams where it is uniquely positioned to drive value creation. Brightstar employs an operationally intensive approach to investing that leverages its extensive experience and relationship network. The firm seeks to invest $50 million to $250 million in each portfolio company over the course of its investment. For more information please visit www.brightstarcapitalpartners.com or @BrightstarCap.

MEDIA CONTACT:

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

Brightstar Capital Partners Closes Investment in Texas Water Supply Company

SAN ANTONIO, TEXAS, October 10, 2017 – Texas Water Supply Company, LLC (“TWS”), which operates approximately 40 wells serving San Antonio and the surrounding Hill Country region, announced today that it has received a significant capital investment from Brightstar Capital Partners (“Brightstar”), a private investment firm that partners with closely held companies in the business services, industrial services, and consumer sectors. The new capital will enable TWS to expand its production capacity to serve the growing water needs of the central Texas Hill Country region.

TWS, founded in 1999, supplies the San Antonio Water System from well fields that draw water from the Middle Trinity Aquifer. The Company’s current well fields have an annual production capacity of over 32,000 acre-feet of potable water.

Trip duPerier, a Director of TWS, commented, “We are pleased that Brightstar is making this vital investment of capital and expertise to support the rapid growth of the Texas Hill Country region and to help us realize the long-term potential of Texas Water Supply Company. The additional capital will allow us to expand our water delivery capacity and ensure a sustainable water supply for municipalities, commercial and residential customers in fast-growing Hill Country communities.”

“The Texas Water Development Board estimates a water shortfall of 221 thousand acre-feet per year by 2030 in the Hill Country – one of the fastest growing regions in the nation by population growth,” noted Dr. Raul Deju, a Brightstar Senior Partner who has a Ph.D. in Hydrology and extensive groundwater development experience. He added, “Brightstar’s investment will enable TWS to help close that gap and further the region’s development.”

“TWS is Brightstar’s second platform investment, both in the State of Texas,” said Andrew Weinberg, Brightstar Founder and Managing Partner. “TWS is an excellent fit with our strategy of investing in closely held businesses where we can apply our capital, technical knowledge, and operating experience to drive growth and value-creation.”

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 or @BrightstarCap.

MEDIA CONTACT:

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