Investcorp acquires US electrical service provider Resa Power

Investcorp, the alternative asset manager which counts Mubadala Investment Company as its largest shareholder, has acquired US electric utility provider Resa Power from private equity firm Blue Sea Capital as part of its expansion into the larger economy of the world.

The total value of the transaction was not provided.

“We believe the company is well positioned for growth as it operates in the large and growing electric power services market, driven by several favorable macroeconomic factors, including the need to upgrade public and private electric infrastructure.” said Yusef Al Yusef, Managing Partner of Investcorp’s Private Wealth Management Platform.

Resa Power, based in Houston, has more than 20 locations in the United States and Canada. It provides electrical infrastructure maintenance and testing, systems integration and related distribution services to customers in the renewable energy, commercial and industrial end markets in North America, the two companies announced Sunday. .

“We believe that Investcorp’s deep understanding of branch-based, human capital-centric industrial services businesses makes it an ideal partner for Resa’s next chapter of growth,” said Monte Roach, Managing Director of Resa Power. .

“Investcorp’s resources and expertise will help us accelerate our growth both organically and through acquisitions,” he added.

In September, Investcorp’s executive chairman, Mohammed Alardhi, told Bloomberg that the company was “very bullish on the US economy.”

The Bahrain-based company is seeking more investment in the United States, which – along with Europe – currently accounts for around 80% of Investcorp’s global investment portfolio, he said.

We believe the company is well positioned to grow as it operates in the large and growing electrical power services market.

Yusef Al Yusef, Managing Partner, Investcorp Private Wealth

It is seeking private equity deals through its North America PE Fund, which has grown to more than $1 billion, he added. The company wants to acquire more real estate assets in the world’s largest economy.

Since Mr. Roach joined Resa Power in 2019, the company has accelerated its growth, started two new sites and completed four acquisitions in the past 12 months, officials said.

Investcorp’s partnership with Resa will focus on the company’s continued organic growth, geographic expansion across North America and accelerating the potential to make strategic acquisitions, they added.

“We particularly appreciate the contributions of Resa’s technicians and employees throughout the pandemic, which have helped to accelerate its growth and increase its market share over the past 20 months and we look forward to work with them as they continue to grow,” Mr. Al Yusef said. .

Investcorp has an established history of investing in providers of critical infrastructure services, with notable previous investments including The Wrench Group, a provider of residential infrastructure and essential maintenance services; Roadsafe Traffic Systems, a road infrastructure service, and Kee Safety, which deals with building and infrastructure safety equipment, he said.

With assets worth more than $37 billion under management, Investcorp has embarked on a deal spree over the past year to take advantage of falling asset valuations during the pandemic.

It made five new private equity investments in the United States and Europe, two add-on acquisitions and 11 investments in companies across Asia in the 12 months to the end of June.

Investcorp expects its assets under management to more than double to $100 billion in seven years as the company expands in the GCC and Asia, according to Alardhi.

Investcorp operates in six business segments: private equity, real estate, credit, hedge funds, strategic capital and infrastructure.

Updated: January 9, 2022, 10:55 a.m.

Mara W. Anderson