Eyewitness Surveillance Sees $2 million
Investment is first from the Peterson Partners $50-million Fund VI.
ANNAPOLIS, MD, Peterson Partners today announced its first investment from the firm's $50-million Fund VI: a $2 million lead investment in Eyewitness Surveillance, a provider of innovative remote video surveillance and monitoring services for automobile dealerships and other properties with valuable equipment or other assets.
Other syndicate investors in the Eyewitness Surveillance investment include The Cambria Group and several high profile, individual investors. Specific terms of the deal are proprietary.
"This is an extremely promising company in a nascent growth industry, with dynamic and effective leadership, a well-conceived business model and compelling competitive advantages. This deal will be a major win for every key stakeholder, including Peterson Partners, our limited partners, the Eyewitness entrepreneurs and the company's growing customer base."
"We could not have asked for a better maiden investment from our newly-minted Fund VI," said Brandon Cope, partner at Peterson Partners, who will join the Eyewitness Surveillance board of directors. "This is an extremely promising company in a nascent growth industry, with dynamic and effective leadership, a well-conceived business model and compelling competitive advantages. This deal will be a major win for every key stakeholder, including Peterson Partners, our limited partners, the Eyewitness entrepreneurs and the company's growing customer base."
Proceeds from the funding round will be used to help Eyewitness Surveillance expand its influence and market share geographically within the automobile dealership market. The company, which has established strong market leadership in Maryland and Virginia, plans to roll out its services in major markets throughout the U.S.. It will also work to establish a leading presence in other key market segments, including construction sites, cell phone towers, rail and cargo depots, solar panel yards and other sites with concentrations of valuable assets.
Eyewitness Surveillance operates on the leading edge of the nascent remote video surveillance industry, which is expected to triple over the next five years, according to industry analysts at IMS (http://secprodonline.com/articles/2010/05/25/remote-video-monitoring-research.aspx). This robust industry growth is driven primarily by inherent cost and effectiveness advantages of the remote video surveillance offering.
Eyewitness Surveillance services are typically half the cost of employing onsite security guards, while significantly improving the observational capability. The company's sophisticated surveillance represents a significant technological competitive advantage. Eyewitness employs cameras, motion detectors and two-way communication systems placed strategically throughout customer sites, which enable security specialists viewing the properties on large screens in remote locations to effectively observe, toggle between and manage multiple sites. When motion sensors indicate the presence of a potential intruder at a particular site, the specialist is able to warn the intruder to depart the premises, and if necessary, to contact law enforcement.
In addition to its technology and first-mover advantages, the company's growth prospects are further solidified by a business model focused on long-term contracts with recurring revenue, and by the quality of the management team, anchored by two Eyewitness new top executives: CEO Rush McCloy and President RT Arnold, Wharton MBAs and co-founders of Channelstone Capital Partners. Company founder Larry Adler will remain with the company in a sales and business development leadership role.
"We couldn't have asked for a better partner than Peterson Partners as they are simply wonderful to work with, and have already created value by facilitating a deal that worked well for us and for the outgoing management team," said McCloy. "With the team's deep operational expertise, relationships and credibility and their willingness to roll up their sleeves and take an active role in the value creation process, we know Peterson will play a crucial role in helping take Eyewitness to the next level, and beyond."
Since the launch of Peterson Partners in 1995, the firm has amassed an exceptional track record of successful investments in diverse industries, including JetBlue Airlines, Making Memories, Energy Solutions, Asurion and Vivint (formerly APX Alarm).
About Peterson Partners
Peterson Partners, based in Salt Lake City, Utah, is one of the Intermountain West's most successful private equity firms. Specializing in small to mid-sized companies, Peterson Partners has a track record of successful investments including JetBlue, Making Memories, EnergySolutions, 3form, Cranium, Asurion, Instashred, Winder Farms and Diamond Rental. Founded in 1995, Peterson Partners has managed over $400 million in committed capital through five funds.
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