Los Angeles-based private investment firm invests in a market leading site preparation business focused on the data center market
LOS ANGELES, MARCH 2019 – Breakwater Management LP (“Breakwater”), a provider of flexible capital solutions to growing lower middle market companies, announced today that it recently completed an investment in Brown & Settle, Inc. (“B&S” or the “Company”) as part of the recapitalization of the Company in partnership with GHK Capital Partners LP (“GHK”). Breakwater was the exclusive provider of debt financing, and Breakwater and funds advised by Headway Capital Partners LLP led the preferred equity financing to support the transaction.
B&S is a leading provider of large-parcel commercial site development services in Northern Virginia, Southern Maryland and Washington D.C., primarily to data center and telecom infrastructure companies. Approximately 70% of global Internet traffic flows through this region daily, and the Company is well positioned to capitalize on the development activity surrounding the increasing demand for computing and data storage facilities. The Founders, Michael Brown Jr. and Gregory “Tommy” Settle, will remain in their current roles as owners and executives, as the Company adds new professionals who will focus on geographic expansion and further market penetration.
Saif Mansour, Managing Partner at Breakwater, commented, “We are extremely pleased to work with B&S, a market leader in site preparation services utilized in the development of data centers, distribution centers and other commercial and government properties. The Company’s leading market position in Northern Virginia, the largest data center market in the United States, provides a tremendous opportunity to capitalize on meaningful forecasted growth in the region.”
Darrick Geant, Partner at Breakwater, stated, “Our partners at GHK were able to identify and secure an attractive acquisition opportunity, and we are looking forward to working together to provide value-added financial and strategic support as the Company achieves its next phase of growth.”
Gil Klemann, Founder and Managing Partner of GHK, added, “We are extremely pleased to have this support from Breakwater as an important long-term partner for the Company and for GHK.”
Breakwater was represented by Proskauer Rose LLP.
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 60 years of private company investing experience and has built the firm on a deep commitment to integrity, partnership and growth.
To learn more about Breakwater, please visit www.breakwatermgmt.com or call (424) 777-4000.