Graham Partners Stays Connected
January 25th, 2023
Graham Partners, a private investment firm targeting technology-driven advanced manufacturing companies, is pleased to announce the sale of its holdings in OptConnect, LLC (“OptConnect”) to a single-asset continuation fund managed by Graham Partners. The transaction was anchored by Pantheon, a global private markets investment firm, with funding also provided by other limited partners that invested alongside of Graham Partners in the new vehicle. Graham believes there are value creation opportunities for OptConnect and is excited to continue its partnership with the company, as well as its existing and new limited partners who invested in the continuation fund.
Headquartered in Kaysville, Utah, OptConnect is a provider of managed wireless connectivity solutions for Internet-of-Things (“IoT”) applications in North America. OptConnect offers a turnkey wireless connectivity solution for various industries and end markets (e.g., industrial, energy, kiosks, smart vending, digital signage, ATMs), providing customers with a broad array of hardware and software in a “plug-and-play” format. The company’s proprietary software platform and white-glove service allow customers to deploy a fully customized, complex IoT network complete with key data insights. As part of its customizable hardware and software offerings, OptConnect can troubleshoot and fix issues on a real-time basis, eliminating labor hours for customers, while minimizing data overages and device downtime.
Graham Partners originally invested in OptConnect in December 2017 with an investment thesis premised on leveraging the company’s proprietary software and hardware offerings, attractive value proposition, recurring revenue model, and favorable market position to drive growth in an exciting area benefiting from robust industry tailwinds in IoT connectivity. With the growth of IoT, Graham believes the number of devices that need standalone wireless connections to the internet is skyrocketing. Graham believes OptConnect is not only benefiting from this trend, but also the conversion towards outsourced managed connectivity solutions.
OptConnect offers an example of a carve-out from a larger business that Graham converted into a standalone platform. During Graham’s initial hold, OptConnect completed an add-on acquisition, innovated new products, and expanded into new end markets.
Rob Newbold, Managing Principal at Graham Partners, said, “With OptConnect, we saw an opportunity to partner with a business that we believe is benefiting from numerous macro tailwinds. The explosion of IoT connected devices positioned OptConnect well for accelerated growth during our initial hold. We are proud to have aided in the development of such an innovative company and look forward to seeing OptConnect through this next phase.”
Pantheon served as the lead investor for the single-asset continuation fund, NXT Capital served as the sole senior debt financing provider, Aviditi Advisors served as the advisory firm for Graham Partners, and Latham & Watkins LLP served as legal counsel for Graham Partners.
OptConnect, headquartered in Kaysville, UT, is a one-stop-shop provider of cellular connectivity solutions for unattended, revenue-generating equipment. The company’s solution combines proprietary device configuration, network monitoring and reliable wireless IoT connectivity to provide a cost effective, dependable, and secure total managed platform. The company offers an attractive value proposition to customers with an easy to install, bundled solution designed to meet the evolving needs of IoT customers.
Pantheon is a global private markets asset manager currently managing or advising on $88.0B (as of June 30, 2022) on behalf of more than 960 investors, including public and private pension plans, insurance companies, endowments and foundations. With four decades of experience since its founding in 1982, Pantheon has developed an established reputation as a trusted specialist offering solutions across the full lifecycle of private market investments, from primary fund investments and co-investments, to the full suite of secondary transactions and recapitalizations, across all stages and geographies.
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