Breakwater Management expands asset management platform with control PE strategy
Breakwater Management (Breakwater), a leading capital provider to the US lower middle market, has expanded its investment management platform to include a control private equity strategy.
This new effort builds upon Breakwater’s 12-year history providing growth capital and acquisition financing through both private debt and structured equity. The platform extension will focus on partnering with outstanding management teams and founders to create significant value through operational improvements, the execution of organic growth opportunities, as well as add-on acquisitions.
“With this new vertical, we’ve expanded our ability to meet the full range of financing needs a lower middle market company may have, further differentiating Breakwater as a capital provider and value-added partner,” says Saif Mansour, Co-Managing Partner.
“This is a natural complement to our existing set of flexible capital solutions, which now includes direct loans, and both minority and majority equity investments,” says Eric Beckman, Co-Managing Partner.
In conjunction with the announcement of the control private equity platform expansion, Breakwater is also pleased to announce its inaugural platform investment in the Matcon Group of Companies (Matcon). Based in Coquitlam, British Columbia, Matcon is a leading commercial contractor in the region, providing a full range of specialty services including excavation and shoring, environmental remediation, demolition and underground utilities services, for large scale civil infrastructure, commercial and residential projects.
“We are thrilled to partner with Stephen Jungaro, Adam Heath, and Stephen Custeau, as significant rollover shareholders, and the rest of the talented Matcon team,” says Darrick Geant, Partner at Breakwater. “Matcon’s impressive track record and recent large project wins serve as an outstanding platform for future expansion. The company’s long-tenured management team has built a market leading position with a blue-chip customer base, and we look forward to supporting their continued success.”
“This is an important new chapter in Matcon’s growth story,” says Stephen Jungaro, Co-Founder of Matcon. “We are very excited to partner with the team at Breakwater as we work to further build the company’s suite of services and opportunity set. In addition to its partnership approach and value as a capital partner, we believe that Breakwater’s previous experience in the industry will bring valuable perspective and operational insights to assist us with our business going forward.”
“We see significant future expansion opportunities through both organic and inorganic growth initiatives, and Stephen and I are extremely excited to continue to lead Matcon through its next stage of development in our roles as executives and shareholders of the Company,” says Adam Heath, Co-Founder of Matcon.
Los Angeles, California based Cherng Family Trust co-invested with Breakwater, and TD Bank provided debt financing in support of the transaction.
McGuireWoods LLP and Lawson Lundell LLP served as Breakwater’s legal counsel on the transaction.
Sequoia Mergers & Acquisitions Corp advised Matcon on the transaction.