News
Charterhouse Group Leads Growth Investment In Newpath Networks
New York, April 21, 2009
Charterhouse Group, Inc. ("Charterhouse"), a New York-based private equity firm that has backed entrepreneurs and supported growing middle-market companies since 1973, announced today that it has completed a preferred stock investment of $20 million in NewPath Networks, LLC ("NewPath" or the "Company"), a wireless infrastructure company. Bill Marraccini, an entrepreneur who previously partnered successfully with Charterhouse to grow AAT Communications, co-founded NewPath and now serves as Chairman.
NewPath Networks designs, develops and operates distributed antenna systems (DAS), which enable wireless carriers to provide coverage and capacity in areas where building a conventional tower is impractical. NewPath works with telecommunications carriers, including AT&T, Verizon and T-Mobile, to develop transmission solutions in areas with high-traffic or difficult coverage situations. NewPath's solutions involve the deployment of underground fiber and smaller, non-visible antennas, which overcome aesthetic considerations and provide flexible and scalable network infrastructure.
Meritage Funds ("Meritage"), a Denver-based venture group, made a $10 million preferred stock investment alongside Charterhouse. The founders of Meritage previously invested with Charterhouse in Cencom Cable.
Charterhouse Group and Meritage have follow-on contribution rights and are prepared to make additional investments in NewPath to accommodate the Company's rapid growth.
Thomas C. Dircks, Managing Partner at Charterhouse, stated, "This is a great example of our entrepreneur network at work, with talented executives that know the firm serving to source and oversee excellent portfolio company investments. Our relationship with Bill Marraccini goes back many years and has already produced outstanding results for our firm and its investors. We are very excited about the next chapter with Bill as well as the opportunity to work with the Meritage team."
Commenting on the partnership, Bill Marraccini stated, "In an environment like the present, it is increasingly important to know how your partners think and act. Based on my experience with Charterhouse on AAT Communications, another telecommunications industry build-up, I am confident that Charterhouse is a perfect fit for NewPath's capital and strategic needs."
Mike Kavanagh, Co-Founder and CEO of NewPath added, "Charterhouse and Meritage's telecom knowledge and capital resources enable NewPath to continue on its rapid organic growth trajectory. Increasing wireless network capacity demands necessitated by the growth in data and multi-media applications make this a very exciting time to focus on expanding our footprint and pursuing strategic acquisitions."
Proskauer Rose LLP served as legal advisor to Charterhouse on this transaction.
About Charterhouse Group:
Charterhouse Group, Inc. is a private equity firm with over three and a half decades of experience in building leading middle-market companies. Established in 1973, Charterhouse has invested in excess of $2.0 billion in equity and established over 100 platform companies with a focus in the Business Services, Healthcare Services and Consumer Products and Services sectors.
For more information on Charterhouse, please visit www.charterhousegroup.com.
About NewPath Networks:
Based in Seattle, WA, NewPath Networks is a wireless infrastructure company that designs, develops and operates fiber-fed wireless carrier networks to improve signal strength and network capacity. The Company's solutions increase existing carrier footprints by adding network coverage in hard-to-reach areas to increase quality for the end-user, wireless customers. NewPath's networks are placed over existing infrastructures, such as telephone poles and street lights, to expand carrier networks with solutions that are aesthetically acceptable to local communities and municipalities. NewPath also focuses on bringing turnkey wireless communications solutions to areas where traditional network build-outs are difficult due to zoning or cost constraints including large corporate, retail, or university campuses, sports arenas and stadiums, and residential neighborhoods.
For more information on NewPath, please visit www.newpathnetworks.net.
About Meritage Funds:
Founded in 1998, Meritage Funds is a Denver-based family of venture capital funds with more than $500 million of committed capital under management. The firm invests in network-enabled service companies, specifically those that leverage networks to enable communication, deliver content and facilitate commerce. Meritage is stage-agnostic and seeks opportunities where the firm's operating expertise and sector knowledge can guide the strategic direction of its portfolio companies and create sustainable value.
For more information on Meritage, please visit www.meritagefunds.com.
Contacts:
Charterhouse Group, Inc.
David G. Hoffman, Partner - (212) 584-3234
Charterhouse Group, Inc.
535 Madison Avenue (at 54th St.)
New York, NY 10022-4299
T: (212) 584-3200
F: (212) 750-9704
www.charterhousegroup.com
Broadgate Consultants
Dan Jacobs - (212) 232-2227
djacobs@broadgate.com
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