Private Equity Firm Brentwood Associates Successfully Closes $410 Million Fund for Watermill Express's Expansion
In a significant move to address America's clean water challenge, Brentwood Associates has successfully closed an oversubscribed single-asset continuation fund worth $410 million. The fund, primarily backed by Hollyport Capital, with Pantheon and Portfolio Advisors as co-leads, aims to support the growth of Watermill Express, a company renowned for providing affordable, high-quality drinking water and ice to communities in need for over 40 years [1][2][3].
Richard Grindrod, Partner at Hollyport, expressed his excitement about the partnership, stating, "We are thrilled to be partnering with Watermill as they continue their expansion." Eric Reiter, Partner at Brentwood and Chairman of the Board of Watermill, shared similar sentiments, expressing confidence in Watermill's continued growth potential [1].
The transaction extends Brentwood's partnership with Watermill's management and allows for an accelerated realization option at a market-driven price for Watermill's investors. Watermill, which operates nearly 1,300 stations across eight states, primarily on the West Coast and in the Sun Belt regions, has seen significant growth under Brentwood's investment. Through new station openings, upgrades, and acquisitions, Watermill has tripled its adjusted EBITDA [2].
The deal has received support from both existing and new investors, including Brentwood's continuation fund. The advisors for the deal include PJT Partners, North Point Mergers and Acquisitions, Kirkland & Ellis LLP, and Proskauer Rose. Brentwood remains confident in Watermill's growth potential and is also investing through its Fund VII [1].
Watermill has supplied safe drinking water and ice to over 10 million people, working with grocery, convenience, and shopping-center landlords to offer essential, sustainable services to their neighbourhoods. The company is well-positioned for further growth, with opportunities to expand its stations and enhance its service offerings [4]. However, the transaction does not specify any new geographical markets for Watermill's growth or opportunities for enhancing its service offerings.
Hollyport Capital is growing its partnership with Brentwood, acting as the lead investor in the continuation fund. The fund, Brentwood's, remains optimistic about Watermill's future, with Brentwood Associates' Chairman, Eric Reiter, expressing confidence in Watermill's continued growth potential [1]. Hollyport Capital is also excited to partner with Watermill on its continued expansion, further reinforcing the commitment to addressing America's clean water challenge [5].
[1] Brentwood Associates Raises $410 Million for Watermill Express' Growth. (2022, March 1). PE Hub. Retrieved from https://www.pehub.com/2022/03/brentwood-associates-raises-410-million-for-watermill-expresss-growth/ [2] Brentwood Associates to Invest in Watermill Express. (2022, March 1). Mergers & Acquisitions. Retrieved from https://www.mergersandacquisitions.com/deals/brentwood-associates-to-invest-in-watermill-express/ [3] Brentwood Associates Raises $410 Million for Watermill Express. (2022, March 1). The Deal. Retrieved from https://www.thedeal.com/mergers-acquisitions/brentwood-associates-raises-410-million-for-watermill-express/ [4] Watermill Express. (n.d.). Brentwood Associates. Retrieved from https://www.brentwoodassociates.com/portfolio/watermill-express/ [5] Hollyport Capital and Brentwood Associates Partner to Invest in Watermill Express. (2022, March 1). PR Newswire. Retrieved from https://www.prnewswire.com/news-releases/hollyport-capital-and-brentwood-associates-partner-to-invest-in-watermill-express-301491837.html
- As the transaction progresses, Hollyport Capital is expanding its partnership with Brentwood Associates by acting as the lead investor in their continuation fund, which continues to be optimistic about Watermill Express' future growth.
- With the successful closing of the single-asset continuation fund, Brentwood Associates is not only investing in Watermill Express but also exploring opportunities in the realm of real-estate and business through strategic investments in the water and ice distribution industry, aiming to address America's clean water challenge and further grow Watermill's business and assets.
