US private equity firm Charterhouse Group has led a $47 million group investment into wireless network operator NewPath Networks for an undisclosed stake.
Via a preferred stock investment Charterhouse commited $20 million for a minority stake, while venture firm Meritage Funds invested $10 million, and the remaining $17 million was provided by, existing investor and Red Bank-based venture firm, Sweetwater Capital.
The ‘L’ is a little bit out of ‘LBO'.
Seattle-based NewPath implements wireless antenna systems in areas where building conventional wireless towers is impractical. It deploys underground fibre and non-visible antennas “which overcome aesthetic considerations”, for mobile phone and internet networks such as AT&T, Verizon and T-Mobile.
Charterhouse was approached to invest in NewPath by co-founder Bill Maraccini in November. He and Charterhouse had previously worked together to grow AAT Communications and they both also had a relationship with Meritage, having previously collaborated an investment into Cencom Cable.
Charterhouse partner David Hoffman told PEO that the firm’s investment was made entirely without leverage.
“The ‘L’ is a little bit out of ‘LBO’”, he said, adding that the investment was the eleventh to have been made from its fourth fund, which closed in 2004 on $450 million.
The firm is no relation to the European Charterhouse, and has been in business for over 30 years with more than $2 billion under management.