BTG Pactual Strategic Capital Announces Strategic Investment to Support UniTek Global Services, Inc. in Its Next Phase of Growth

Rhea-AI Summary

BTG Pactual Strategic Capital (Strat Cap) has completed a strategic investment in UniTek Global Services, a super-regional broadband infrastructure services provider, in partnership with existing lead investor New Mountain Finance (NMFC).

UniTek specializes in broadband solutions, including engineering, design, and fiber installation services for aerial and underground infrastructure. The investment aims to accelerate UniTek's growth strategy in response to increasing bandwidth consumption, fiber expansion support, and growing data center connectivity needs.

The transaction is expected to benefit stakeholders by enhancing service delivery capabilities across the US and Canada. UniTek's management team, including CEO Charlie Smith, will continue their focus on providing infrastructure services while leveraging the new partnership to pursue organic and inorganic growth opportunities.

Positive

• Strategic investment secured from BTG Pactual Strategic Capital
• Partnership with major investor NMFC maintained
• Positioned for organic and inorganic growth opportunities
• Operating in expanding markets (fiber, data centers, broadband)

Negative

• None.

Insights

Financial Analyst

This strategic investment by BTG Pactual Strategic Capital into UniTek Global Services represents a potentially positive development for New Mountain Finance (NMFC) shareholders. As a business development company with a $1.29 billion market cap, NMFC generates returns by investing in middle-market companies and monetizing these investments over time.

While financial terms remain undisclosed, this transaction likely accomplishes several strategic objectives for NMFC:

• Brings additional growth capital to a portfolio company without requiring NMFC to commit additional funds
• Validates NMFC's investment thesis in UniTek, as third-party investors are willing to participate
• Potentially enhances the valuation of NMFC's existing stake in UniTek
• Provides resources for UniTek to capitalize on significant industry tailwinds

The broadband infrastructure sector is experiencing substantial growth driven by several factors: the $65 billion Broadband Equity, Access and Deployment (BEAD) program, increasing data consumption, and the rapid expansion of data centers requiring connectivity. These market conditions create a favorable environment for UniTek's services.

For NMFC investors, this partnership may indicate a pathway toward eventual monetization of their UniTek investment. BDCs typically aim to generate investment returns through interest income, capital appreciation, and ultimately exits from portfolio companies. The introduction of a new financial partner often precedes additional growth initiatives that can enhance company value before a potential future exit.

This development suggests NMFC's management continues to actively manage their portfolio to maximize value, which supports their ability to maintain their dividend payments - a primary concern for BDC investors who typically seek income-oriented investments.

BTG Pactual Strategic Capital’s investment is in partnership with lead existing investor, New Mountain, to accelerate growth of the business

NEW YORK--(BUSINESS WIRE)-- BTG Pactual Strategic Capital (“Strat Cap”) announced today that it has completed a strategic investment in UniTek Global Services, Inc. (“UniTek” or the “Company”), a leading super-regional broadband infrastructure services provider supporting the telecommunications and data center end markets. This investment is in partnership with UniTek’s lead investor, New Mountain Finance Corporation (Nasdaq: NMFC) and affiliates.

UniTek provides a comprehensive suite of broadband solutions, including engineering and design, fiber installation, and maintenance services for aerial and underground fiber infrastructure.

James Frank, Head of Strat Cap, said, “We are excited to partner with UniTek management and New Mountain Capital on this investment. With increasing bandwidth consumption, growing support for fiber expansion, and the increasing need for data center connectivity, UniTek is well positioned for substantial organic and inorganic growth. We believe this strategic collaboration will build upon the excellent foundation at the Company and position UniTek for long-term success.”

UniTek CEO, Charlie Smith, added “We are confident this transaction will deliver value for all of our stakeholders, including clients, employees and investors as it accelerates the growth strategy that we have developed for the company. Strat Cap’s investment is a recognition of the bright future ahead of our organization and we look forward to continuing to deliver top-tier infrastructure services and support to our clients across the US and Canada. The continued growth of UniTek will enable further service delivery improvement for our clients and opportunity for our team members.”

Harris Kealey, Managing Director at New Mountain Capital, commented, “The leadership team at UniTek continues to build on their reputation of providing excellent service to their clients. We are thrilled to continue our partnership with the team and are very excited to bring on Strat Cap as a partner to accelerate future growth in the very attractive fiber and broadband end markets.”

A&O Shearman served as legal counsel to UniTek.

Gibson, Dunn & Crutcher LLP served as legal counsel to Strat Cap.

About BTG Pactual Strategic Capital

BTG Pactual (BPAC11) is the largest investment bank in Latin America with over US$ 300 billion in assets under management and advisement. Strat Cap is an opportunistic investment strategy focused on asset-oriented businesses and sits within BTG Pactual’s US$ 8.1B Global Alternatives division. Strat Cap partners with sponsors, management teams and business owners to create value and is led by a seasoned investment team with relevant experience in private equity, credit, and structured solutions. For more information, please visit http://www.btgstratcap.com. All AUM figures are as of YE 2024.

About New Mountain Finance Corporation

New Mountain Finance Corporation (Nasdaq: NMFC) is a leading business development company (BDC) focused on providing direct lending solutions to U.S. upper middle market companies backed by top private equity sponsors. Its portfolio consists primarily of senior secured loans, and select junior capital positions, to growing businesses in defensive industries that offer attractive risk-adjusted returns. Our differentiated investment approach leverages the deep sector knowledge and operating resources of New Mountain Capital, a global investment firm with over $55 billion of assets under management. Additionally, New Mountain has affiliates that pursue similar investment strategies.

About UniTek Global Services, Inc.

UniTek is a leading broadband infrastructure services provider supporting the expansion of fiber and data center connectivity across the Southeast and Mid-Atlantic United States and Western Ontario. With over 750 employees and 80 locations across the US and Canada, UniTek delivers OSP & ISP planning, design, permitting, and project management services. For more information, visit https://unitekglobalservices.com/.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250227884422/en/

Nick Weisser, nick.weisser@btgpactual.com

Source: BTG Pactual Strategic Capital

FAQ

What is the purpose of BTG Pactual's strategic investment in UniTek Global Services?

The investment aims to accelerate UniTek's growth in broadband infrastructure services, capitalizing on increasing bandwidth consumption and fiber expansion opportunities.

How will the NMFC partnership with BTG Pactual Strategic Capital benefit UniTek?

The partnership will support UniTek's expansion in fiber and broadband markets while improving service delivery capabilities across the US and Canada.

What services does UniTek Global Services provide in the telecommunications sector?

UniTek provides comprehensive broadband solutions, including engineering, design, fiber installation, and maintenance services for aerial and underground fiber infrastructure.

What markets will UniTek target with the new strategic investment?

UniTek will focus on telecommunications and data center end markets, particularly in fiber expansion and data center connectivity across the US and Canada.