Seaside Equity Partners Banks $218m So Far for Second Fund

Seaside Equity Partners, founded by a former managing director and partner from alternative investment firm Wafra Inc., rounded up more than $218m for the first closing of its second fund, people familiar with the offering said.

The first closing puts the firm’s Seaside Equity Partners II strategy to back smaller companies near a $225m goal, the people said. They added that the firm aims to wrap up fundraising for the offering across two parallel vehicles well above the target before year-end.

Earlier this year, Seaside Equity Partners, a growth-oriented private equity firm focused on investing in leading providers of mission critical services in the Western, announced that it has completed the sale of its portfolio company Andersen Commercial Plumbing.

Headquartered in La Verne, CA, ACP provides turnkey plumbing and HVAC services to the Southern California market, serving as a one-stop solution to its growing customer base. Through its eight locations, ACP services a loyal, blue-chip set of customers across diversified end markets.

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The sale of ACP is a representation of Seaside’s commitment to supporting founder- and family-owned and led businesses through their next phase of strategic growth. Throughout its ownership period, Seaside and management implemented and executed on numerous elements of Seaside’s value creation playbook, utilizing a specialized strategy and refined process to drive meaningful growth and value creation. Through the acquisition of eight highly complementary plumbing and HVAC service providers, the execution of one greenfield expansion, and the achievement of a set of clearly defined strategic initiatives, ACP has grown revenue and EBITDA meaningfully since 2018.

“The tremendous growth we have experienced over the past four years is a testament to our top-notch organization and the notable value we provide for our customers. This sale is a result of the hard work our employees put in day in and day out, allowing us to lay the foundation for the strong brand from which we benefit in the market and separate ourselves from the competition. I would like to thank Seaside for their partnership and commitment over the last several years which has allowed us to unlock our potential,” said Paul Andersen, President & Founder of ACP.

“Paul and the entire ACP team have worked diligently to put in place the required infrastructure and playbook needed to support ACP’s impressive expansion. The team’s work has laid the foundation for the best-in-class business that ACP represents today. We are extremely proud and thankful for the opportunity to partner with ACP and the eight additional, exceptional founder-owned businesses we were able to add to the ACP family over our four-year investment period and we wish them the best of luck on this exciting next phase of their journey,” said Jesse Kay, a member of the Seaside investment team.

Lincoln International LLC served as the exclusive financial advisor to ACP on the transaction.

Source: Wall Street Journal

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