Calvert Street Remains Active in 2020
Despite the economic disruption and uncertainty caused by the COVID-19 pandemic, Calvert Street Capital Partners (“Calvert Street”) has continued to make progress with its equity portfolio and relaunched its mezzanine investment business through Parkway Capital.
On March 16th, TechPro Power Group ("TechPro") onboarded new CEO, Mike Kilpatrick. Prior to joining TechPro, Mike spent most of his career with S&C Electric, a leading provider of power distribution equipment and service. Mike brings a wealth of utility customer contacts and service provider experience to TechPro.
On May 1st, TechPro operating subsidiary, Potomac Testing (“Potomac”), acquired Electrical Maintenance and Testing (“EMT”). Based in Carmel, Indiana, EMT provides high quality, independent electrical testing services to a broad customer base in Indianapolis and the surrounding region. EMT’s highly trained NETA-certified technicians are focused on ensuring the safety and reliability of all forms of power distribution equipment and apparatus.
Parkway Capital, Calvert Street’s mezzanine business, represents the relaunch of our flexible junior capital investment strategy and is an excellent complement to our control equity investment strategy. Parkway is off to a strong start in 2020, having received its SBIC License in April and hiring an additional investment professional, Nelson Westwood, in May.
Josh Hall, Founder of Calvert Street noted, “It requires a team effort to navigate difficult times such as the uncharted territory of COVID-19. We feel extremely fortunate to partner with such high-quality management teams, board members, lenders and investors at Calvert Street and our portfolio companies who have worked tirelessly to stabilize and build our companies. Calvert Street remains committed to these relationships and is always looking for new partnership opportunities.”
The Second Half of 2020
As we look forward to the balance of 2020, Calvert Street remains committed to providing customized capital solutions to lower middle market businesses. Whether the situation calls for mezzanine debt and a minority equity investment or a more extensive balance sheet recapitalization and control buyout, Calvert Street and Parkway Capital are actively pursuing investment opportunities in the lower middle market.
|Investment Type||Calvert Street - Control Equity||Parkway Capital - Mezzanine Debt and Equity|
|Revenue and EBITDA||>$15mm Revenue / >$3mm EBITDA||>$10mm Revenue / >$2mm EBITDA|
|Target Investment Size||$15 to $50 million||$3 to $12 million|
|Industries||Industrial Services, Specialty Manufacturing, Tech-enabled Industrial & Business Services||Various industries in stable markets with sufficient free cash flow to service pro forma debt structure|
|Ownership Situation||Family and founder-owned, Sponsoring management buyouts, Corporate divestitures,||Family, founder, management-owned and Private equity-owned (including independent sponsors)|
Based in Ft. Worth, TX, TechPro Power Group, together with its operating subsidiaries Technical Diagnostic Services (“TDS”) and Potomac Testing, is a leading independent provider of electrical, instrumentation and controls testing and NETA-certified electrical testing and power quality surveys to the power, utility, refining, datacenter, institutional and commercial markets nationally. For more information, please visit www.tdssolutions.com and www.potomactesting.com.
About Calvert Street and Parkway Capital
Calvert Street is a lower middle market investment firm based in Baltimore, Maryland. Our firm consists of experienced professionals pursuing two distinct investment strategies: (i) control equity investments (through Calvert Street) and (ii) mezzanine investments (through Parkway Capital). Our control equity team utilizes a research driven approach to identify attractive businesses providing critical services to the industrial and commercial sectors. Our mezzanine team provides flexible junior capital solutions for companies in a broad range of industries including manufacturing, distribution, consumer products, business and industrial services, and healthcare. Collectively, Calvert Street’s and Parkway Capital’s investment professionals have invested in over 120 companies representing cumulative transaction values in excess of $1.5 billion. For more information, please visit www.cscp.com.