GI Partners Acquires Facilities Manager HES

GI Partners has closed a majority investment in HES Facilities Management (HES), a Tennessee-based provider of janitorial, facilities management, and groundskeeping services to K-12 school districts and other higher education institutions across the United States, and a portfolio company of Nautic Partners.

The HES management team, including chairman Buddy Helton and chief executive Charlie Spencer, reinvested alongside GI and retained an equity position in the company.

HES provides outsourced custodial, grounds, and maintenance services to educational institutions, operating in more than 30 states. Its customer base spans K-12 school districts and college and university campuses, markets that share common operational needs — large physical plants, high foot traffic, health and safety standards, and budget constraints that favor outsourced service contracts over in-house staffing.

The company’s services include daily custodial cleaning, specialized deep-cleaning programs, groundskeeping and landscaping, preventive maintenance, and facilities management oversight. HES was built as an education-only platform from its founding, distinguishing it from generalist commercial facilities contractors that serve multiple end markets.

HES — the initials stand for Helton Education Services — was founded in May 2020 by Mr. Helton and Mr. Spencer in partnership with Nautic Partners. The duo had previously worked together for more than a decade building the education facility services segment of GCA Services, a former Nautic Partners portfolio company, before joining the firm as co-founders of the new platform. HES made its first acquisition in May 2020, adding SMS, a Tennessee-based regional operator founded in 2007 that served K-12 and higher education customers in Tennessee, Georgia, and South Carolina. In December 2020, HES added WFF Facility Services and Clean-Tech, a higher education-focused operator. Over the six years since its founding, HES has now expanded to operate in more than 30 states.

“Partnering with GI Partners represents an exciting opportunity for HES,” said Mr. Spencer. “Their experience in scaling service-driven organizations aligns well with our long-term vision and strengthens our ability to invest in our people, enhance operational excellence, and expand across K-12 and higher education, and selectively into adjacent end markets. We look forward to the growth and value we will create together.”

“HES has established a high-quality platform in a resilient end market, supported by strong customer relationships and a service-first culture,” said Jeff Sheu, a managing director and head of services investments at GI Partners. “We’re pleased to partner with the HES leadership team to support the next phase of growth through continued investment in people, processes, and scalable infrastructure.”

Outsourced facility management is a growing segment of the broader facilities services market, driven by institutional customers’ preference for specialized expertise, cost efficiency, and regulatory compliance support over internal staffing. According to Grand View Research, the global facility management services market was valued at $1.7 trillion in 2024 and is projected to reach $2.3 trillion by 2033, growing at a compound annual growth rate (CAGR) of 3.3%. Outsourced services accounted for 61.5% of global market revenue in 2024, the dominant delivery model, as organizations across healthcare, government, and education increasingly contract out non-core building operations to specialized providers.

“HES is proud to announce our new partnership with GI Partners as we enter an exciting new chapter of growth,” said Mr. Helton. “This partnership positions us to accelerate our strategic initiatives and continue building value at scale across our markets. With GI Partners’ support and expertise, we are confident in our ability to expand our reach while maintaining the service excellence that defines HES.”

GI Partners makes control equity investments in companies with enterprise values up to $2 billion that are active in the healthcare, IT infrastructure, services, and software sectors. In June 2021, the firm held a final closing of GI Partners Fund VI LP at an oversubscribed $3.9 billion. GI Partners was founded in 2001 and is based in San Francisco, with five additional offices across the US and in London.

Nautic Partners is a middle-market private equity firm that invests in companies within the healthcare, industrial, and outsourced services sectors. Nautic targets majority equity investments ranging from $50 million to $400 million in companies with enterprise values between $100 million and over $1 billion. In October 2024, the Providence, Rhode Island-headquartered firm closed its latest fund, Nautic Partners XI LP, with $4.5 billion in limited partner commitments, surpassing its initial target of $3.75 billion.

Baird was the financial advisor to HES and Nautic Partners on this transaction, and Rothschild & Co was the financial advisor to GI.