26North's Private Equity Platform to Acquire ArchKey Solutions in Debut Deal

NEW YORK, Sept. 4, 2024 /PRNewswire/ -- 26North Partners LP ("26North"), a next-generation alternatives platform founded by Josh Harris, announced today that it has entered into a definitive agreement to acquire ArchKey Solutions ("ArchKey"), a leading provider of electrical, technological, and specialty systems to enterprise customers nationwide. The deal marks the first transaction for 26North's private equity platform. Financial terms were not disclosed.

"This is just the sort of transaction we envisioned when we launched our private equity business last year," said Mark Weinberg, 26North Partner and Head of Private Equity. "We are acquiring a market-leading business that we believe is led by an exceptional team deeply aligned with the company's ultimate success. 26North is also pleased to have the selling shareholders, including current and former management, remain as investors in the business."

Headquartered near St. Louis, Missouri, ArchKey has a multi-decade track record of delivering innovative electrification and infrastructure solutions essential to business success. ArchKey offers design, installation, retrofit, and a wide range of maintenance for electrical and technological services. Notable projects include the Sphere in Las Vegas, CityPark Major League Soccer (MLS) stadium in St. Louis, and the Smithsonian National Museum of African American History and Culture in Washington, D.C.

"ArchKey delivers creative and mission-critical solutions across the nation through its highly skilled and nimble workforce," said Derek Whang, 26North Private Equity Partner. "The company has an impressive track record of demonstrated growth and a differentiated expansion strategy. We look forward to leveraging all of 26North's resources to drive continued execution of their customer and employee-centric operations and deliver greater value for all constituents."

26North will bring extensive experience in the industrial services sector and a broad network of relationships to support ArchKey CEO Steve Stone and his entire management team. 26North will also seek to leverage its affiliates' broad sports ecosystem to deepen ArchKey's nationwide sports, entertainment and arena work.

"We are excited to announce our partnership with 26North, and believe they are the right partner to help take ArchKey to the next level," said Stone. "Businesses increasingly require complex electrical and technology-based solutions, and we are well positioned to provide best-in-class service to our customers on a national scale, enabling businesses to thrive in a dynamic economy."

Josh Harris and Mark Weinberg launched 26North's private equity platform focused on investing in the middle and upper middle market in a highly aligned way. The private equity strategy seeks high-quality, cash-generative businesses that benefit from strong secular tailwinds and the extensive resources of 26North. The firm leverages its Alpha Creation Team (ACT), led by long-time former McKinsey & Company partner Jon Garcia. ACT is integrated into 26North's private equity platform and aims to deliver sustainable operational excellence on behalf of all our stakeholders.

"We're thrilled to partner with Steve and his outstanding management team to drive the company's next phase of growth," said Garcia, 26North Partner and Head of ACT. "26North was attracted to ArchKey's deep technical expertise and diverse exposure to some of the most attractive and resilient end markets in the industry."

The transaction is expected to close in the fourth quarter of 2024, subject to satisfaction of customary closing conditions. Kirkland & Ellis LLP is serving as legal counsel. Santander is serving as lead financial advisor, and Greenhill & Co., a Mizuho Securities USA affiliate, and BMO Capital Markets are also serving as financial advisors. Royal Bank of Canada, Banco Santander, Mizuho Bank and BMO Capital Markets are arranging financing for the transaction.

ABOUT 26NORTH

26North Partners LP is an integrated, multi-asset class investment platform that provides investment advice and opportunities to its clients related to a variety of investment strategies, including, but not limited to, private equity, credit, and insurance and reinsurance solutions. The 26North team brings decades of experience managing third-party capital to help clients achieve their financial goals while leaving a lasting impact on the communities where they operate. Since launching in late 2022, 26North has grown to approximately $23 billion in assets under management.

Media Contact: media@26n.com

ABOUT ARCHKEY SOLUTIONS

ArchKey, one of the largest privately held specialty trade installation and integrated facilities services companies in the United States, is a leader in designing, building, and maintaining electrical, technologies, and other specialty systems. Our team of over 4,000 works nationally to support our customers and solve problems regardless of their size or complexity. In 2022, ArchKey launched ProKey Facilities, an integrated facilities service platform providing turnkey facility operation management. For more information, please visit www.archkey.com

SOURCE 26North