Rotunda Capital has acquired Canter Power Systems, a provider of installation and maintenance services for residential standby power generators.
Canter’s residential backup generator systems typically range from 5 kW to 60 kW and include battery storage systems. The company’s suite of services includes in-home estimates, equipment selection, permitting, installation, testing, start-up, inspection, certification, and ongoing maintenance. According to Canter, it is one of the largest independent installers of home standby power generators in the United States.
Canter was founded as Canter Electric in 1948 by Ken Canter. The business entered the residential backup generator business in 2002 and changed its name to Canter Power Systems in 2014. Today, the company is headquartered in Greensboro, North Carolina, and operates across multiple states including North and South Carolina, Virginia, Tennessee, Florida, Alabama, Texas, and Georgia. Post-closing, Brian Lopatka, a third-generation member of the Canter family, will serve as CEO of Canter.
“We look forward to working alongside the Canter team to expand upon the company’s comprehensive solution capabilities, enter new geographies and product categories, and pursue add-on acquisitions,” said Bob Wickham, a partner at Rotunda.
“I am excited to have found a partner in Rotunda and to transition the business that I have spent my career building, to my son-in-law Brian, and the wonderful team we have collectively built,” said Ken Canter.
“This is an incredible opportunity for the Canter Power Systems family,” said Mr. Lopatka. “From our first meeting, it was clear that Rotunda recognized the foundation and strong culture we have built, and the continued success our company can achieve. Through this partnership, we plan to expand geographically, enter new markets, and continue to support the growth of our longstanding channel partners.”
“This transaction continues Rotunda’s focus on finding unique and valuable family- and founder-led firms using our thematic sourcing approach with our 18th platform investment,” said John Fruehwirth, the managing partner of Rotunda.
Rotunda invests in businesses with enterprise values of $30 million to $150 million. Sectors of interest include asset-light logistics, value-added distribution, specialty finance, and industrial and business services. The firm was founded as an independent sponsor in 2009 and is led by managing partner John Fruehwirth, and partners Dan Lipson, Corey Whisner, and Bob Wickham.
In December 2020, Rotunda closed its debut institutional private equity fund, Rotunda Capital Partners Fund II LP, with more than $195 million of capital commitments. The buy of Canter is the sixth platform investment made by Fund II. In January 2022, Rotunda closed its third fund, Rotunda Capital Partners Fund III LP, with $405 million in capital commitments. Fund III was oversubscribed and closed above its initial target of $295 million.
“Our investment thesis for our buy of Canter is that greater storm activity, decreased electrical grid reliability, and increased loads on home electrical systems will drive adoption of backup generators, as well as solar and battery systems,” said Ryan Aprill, a principal at Rotunda.
Rotunda is headquartered in Bethesda, Maryland with an additional office near Chicago in Evanston, Illinois.
© 2022 Private Equity Professional | September 30, 2022
Shore Capital Partners, through its dedicated food and beverage fund, has acquired iTi Tropicals. Post-closing, iTi will partner with BevSource, a platform investment of Shore since November 2021.
“Shore is thrilled to welcome iTi as a cornerstone of our food and beverage supply chain solutions platform,” said Richard Boos, the chairman of BevSource and a partner at Shore. “iTi is an immensely strategic addition to the platform, adding significant new capabilities, expertise, and deep customer and supplier relationships in the beverage industry while also expanding the platform’s reach into food end-markets. We look forward to partnering with management to continue growing these two best-in-class businesses into a leading provider of ingredients, packaging, and value-added supply chain solutions to the food and beverage industry.”
Fort Point Capital has held an oversubscribed, hard cap, and final closing of its third private equity investment fund, FPC Small Cap Fund III LP and FPC Small Cap Fund III-A LP (together FPC III), with $340 million in capital.
“We appreciate the continued support of our existing investors and are grateful for the strong interest from the new limited partners joining us in FPC III,” said Brooke Ablon, a co-founder and partner at Fort Point. “Fort Point continues to attract high-quality investors whose partnership is essential to the success of our firm.”
“Fort Point’s disciplined, institutional approach focused on the lower middle market and strong alignment in all of our relationships resonated with investors,” said Paul Lipson, a co-founder and partner at Fort Point. “There is no change to our focus in FPC III. Our willingness to aggressively invest in people, processes, and systems has resulted in a unique portfolio in our first two funds with demonstrated results.”
“Entering our eleventh year since raising FPC I, we are proud of the team we’ve built at Fort Point and the strong relationships formed with our portfolio companies,” said Christina Pai, a partner at Fort Point. “We look forward to the new management partnerships we will create in FPC III. Our goal is to continue to utilize our experience and network of resources to enable more companies to achieve their growth objectives.”
Ethos Capital has hired Hayley Kirman as a vice president. In her new position, she will be active with numerous investment functions including due diligence, transaction execution, and portfolio management.
Prior to working at ABRY, Ms. Kirman was a strategy consultant at EY-Parthenon in its private equity practice, where she advised clients on transaction strategy and performed commercial market due diligence on target acquisitions. Ms. Kirman has a BA in Economics and a BA in Classics from Brown University.