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Egis Capital Partners focuses on deals in the security industry

Egis Capital Partners has announced that it will actively pursue private equity investment opportunities in the security industry with deals ranging in size from USD5m to USD40m.

Egis Capital Partners has announced that it will actively pursue private equity investment opportunities in the security industry with deals ranging in size from USD5m to USD40m. The firm plans to undertake buyout transactions and growth equity investments across all sub-sectors of commercial security and homeland defence.

Egis was launched by former Apax partner Robert Chefitz, USBX founder and chief executive John E. Mack III, and former Andersen partner and private equity investor Joseph Falkenstein. Chefitz has a 25-year history of private equity investing, including 15 years as a partner at Apax, where he led 26 transactions including security-related investments such as Protection One, Casi Rusco and CML.

‘Egis will fill a void that exists at the intersection of the USD200bn security industry and the USD200bn annual commitment to private equity funds,’ Chefitz says. ‘I am very enthusiastic about the opportunity to provide real leadership as a focused investor in the security sector. Egis will work hard to be the investor of choice for management teams and private equity co-investors in the security industry.’

After founding USBX Advisory Services in 2000, Mack has guided the Santa Monica, California-based investment bank to becoming a leading boutique bank focused on the security industry. He was previously chief executive of Protection One, where he and Chefitz collaborated on more than 200 acquisitions in building the second-ranking US player in alarm monitoring.

‘I am excited to reunite with Robert to execute an investment strategy that is poised for success,’ Mack says. ‘My entire career has been focused in the security industry, and between my personal network and the affiliation with USBX, Egis Capital will enjoy a unique ecosystem to support its sector-focused investment operations.’

‘Deal flow is very strong in the sector, with more than 1,000 transactions and almost USD100bn in aggregate value realised during the past two years. Egis will truly be a value-added investor.’

Falkenstein, a former partner of Arthur Andersen who headed the private equity transaction support services group for Andersen’s northeast region, brings 20 years of experience in private equity, venture capital and finance.

‘The security industry enjoys several macro trends that bode well for successful private equity investing,’ says Falkenstein, co-founder of an USD80m venture capital fund he co-manages with Chefitz.

‘The security industry is experiencing double-digit growth fuelled by technology advances, a linking of logical and physical security, and steady increases in government spending on homeland initiatives.

‘In addition, consolidation remains a key trend. The global market is relatively fragmented with few sizable take over candidates available to big buyers. These are the right ingredients for above-average private equity returns.’

Egis Capital Partners will focus its investment activity in North America, with offices in Roseland, New Jersey, Santa Monica, California, and McLean, Virginia.

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