Media
2023 Year-In-Review: Huron Capital Wraps Up Record Year of ExecFactor® Activity
In 2023, for ExecFactor® we developed 30 ideas, 4 theses were underwritten, 3 initiatives were launched, and 1 platform was closed, including 11-add-ons.
ExecFactor® is Huron’s proprietary, thematic investment strategy where we underwrite an industry and partner with an executive or team of executives to deploy our buy-and-build investment model in one of our core services sectors.
Huron Capital’s (“Huron”) thematic-driven and services-focused investment strategy proved its resilience in 2023 delivering a record level of ExecFactor® activity and continued buy-and-build deal momentum amidst a slowdown in middle market M&A volume*.
Newest ExecFactor® Platform Investment
Huron completed its 18th ExecFactor® platform in August of this year when it acquired RK Electric (“RK”), the cornerstone investment for our latest facility services ExecFactor® thesis in mission-critical, highly technical electrical services.
Based in Fremont, California, RK is a best-in-class company focused on services and preventative maintenance for critical environments with decades of experience in highly technical and attractive end markets including semiconductor, biotechnology, EV and battery manufacturing, and higher education.
Led by industry veteran and CEO, Tom Bartolomei, RK’s growth strategy is focused on entering attractive geographies, leveraging shared engineering resources, and developing the IT and financial infrastructure required to manage a much larger and more diversified platform.
In addition to Huron’s fund investment, RK received a meaningful co-investment from Huron’s existing LP base to affect the transaction. Having closed debt or equity co-investments for the last 5 platform investments, Huron remains committed to leveraging co-investment to support existing and future platform companies.
Two Recently Launched ExecFactor® Initiatives
In fall 2023, we announced the launch of two ExecFactor initiatives in partnership with industry veterans.
Enterprise Application Services
Digital technology transformation and business workflow design services with a focus on application modernization and process automation
Testing, Inspection, and Calibration Services
Testing, validation, calibration, and repair services on critical equipment and infrastructure assets
Buy-and-Build Momentum Continues
In 2023, Huron closed 11 add-ons across four active portfolio companies.
Notably, ExperiGreen, a leading provider of residential lawn care services including fertilization, weed control, aeration, seeding, disease treatment, grub control, perimeter pest control, and tree and shrub care, completed 6 add-on acquisitions; 10 total since our initial platform investment in 2022.
The company currently serves over 100,000 residential lawn care and related services customers across the Midwest, Mid-Atlantic, Northeast, and Canada and is actively seeking new partnerships with great lawn care companies in both new and existing geographies, specifically those focused on residential fertilizer and herbicide application that are growing and profitable, have strong customer and technician loyalty and strong customer reviews.
Meanwhile, Exigent, a leading regional provider of critical HVAC, plumbing, engineering, and energy efficiency services to complex facility operations, closed 4 add-on acquisitions; 6 total since our initial platform investment in 2022.
Through these acquisitions, Exigent, expanded its geographic reach to New England and broadened its energy efficiency and sustainability engineering and advisory capabilities. It continues to aggressively pursue new acquisition opportunities of union businesses located in the eastern half of the US that provide a high degree of recurring service work with minimal new construction exposure to healthcare, education, industrial, government, and other commercial customers.
Huron Named to Inc.’s 2023 List of Founder-Friendly Investors
The fifth annual Inc. Founder-Friendly Investors list honors private equity firms with the best track records of success backing entrepreneurs. “We are thrilled to be recognized by Inc. for our successful track record as founder friendly investors,” said Managing Partner, Jim Mahoney. “As a trusted investor that is committed to supporting and partnering with entrepreneurs looking to scale their businesses, we take pride in the value and deep level of expertise we provide to each of the founders we partner with.”
*Per Pitchbook’s US Middle Market Private Equity Q3 2023 report, YTD US middle market deal value and volume were down 13.9% and 1.0%, respectively; overall YTD US buyout deal value and volume were down 29.3% and 6.0%, respectively over the prior year.
Our Sectors
Leveraging years of experience building services businesses, we have developed a keen awareness and understanding of secular trends and challenges in the services industry which help us identify attractive investment themes and niches within each of our sectors. This deep knowledge base allows us to move with speed and conviction when pursuing and diligencing investment opportunities.
Facility & Infrastructure Services
Facility Services
Residential Services
Environmental Services
Test, Inspection, Compliance, and Certification
Infrastructure and Utility Services
Industrial Technology and Automation Services
Value-Added Distribution
Transportation and Logistics
Professional Services
Financial and Insurance Services
Tech-Enabled Services
A leading Investor in North American Services Businesses
Huron Capital brings a people-first and thematic approach to private equity investing in secularly relevant and fragmented sectors of the North American facility and infrastructure services and professional services industries. We pride ourselves on an unwavering commitment to candor, trust, accountability, and transparency in our relationships with management teams, investors, advisors, and employees.
Founded in Detroit in 1999, we partner with entrepreneurs and management teams, empowering their companies to new levels of excellence. We provide resources to help companies grow by professionalizing operations, improving service offerings, executing M&A strategies, and accessing new markets.
Huron Capital has managed over $1.9 billion on behalf of a global institutional investor base. We fulfill our commitment to all stakeholders by employing a repeatable playbook to drive thoughtful value creation, showcased in over 275 acquisitions since the firm’s inception.
Certain information herein may contain forward-looking statements which are provided to assist the reader in understanding the beliefs and opinions with respect to future opportunities as perceived by Huron Capital and others quoted herein. These statements are not guarantees of future performance and undue reliance should not be placed on them. Such forward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause actual performance in future periods to differ materially from any projections or results expressed or implied by such forward-looking statements. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. The issuer of these statements undertakes no obligation to update forward-looking statements if circumstances or estimates or opinions should change except as may be required by applicable securities laws.
