Seaport Capital of New York, an investor in Municipal Communications, a company that develops, owns and operates cellular communications towers, primarily in the Southeast and Upper Midwest, has closed Seaport Capital Partners VI, a $240 million private equity fund.
Fund VI will continue Seaport’s 25-year investment approach, focusing on lower middle-market investment opportunities in the business and information services, communications services and media sectors, the company said. It said that the five Seaport partners, Scott McCormack, Bob Tamashunas, Drew Meyers, Bill Luby and Jim Collis, have worked with each other since 2003 and have over more than 100 years of combined investing experience in business and information services, communications services and media sectors.
“We greatly appreciate the support and partnership from our existing and new investors,” McCormack said. “With three investments, Fund VI is off to a strong start. We look forward to building and growing the current and future Fund VI portfolio companies with their management teams.”
Bob Tamashunas said that Seaport Capital identifies unique investment opportunities in the lower middle-market and partners with management teams to build companies with lasting legacies.
Seaport Capital Partners VI will invest in companies that meet Seaport’s investment criteria, which include recurring or contracted revenue, high organic EBITDA growth, strong operating leverage, unit-economics-driven business models and that operate in growing or fragmented industries, the company said. It said that almost all of Seaport’s portfolio companies were previously owned by founders or entrepreneurs seeking the right institutional partner to provide financial and operational resources to help successfully grow their businesses.
In addition to Municipal Communications, Seaport Capital Partners VI has invested in Exacom, which provides mission-critical multimedia recording software solutions to public safety and government customers, and in Family Entertainment Holdings, which produces family-oriented entertainment and events.
Seaport Capital Partners said that Fund VI’s investor base includes institutional investors, family offices, high-net-worth individuals and current and former portfolio company executives. Similar to Fund V, the company said, Fund VI received a commitment from the management of the general partner.
“Seaport typically invests $10 to $40 million of equity capital in companies generating EBITDA between $3 and $15 million, with the goal of maximizing the return on invested capital,” a statement from the company reads.
Seaport Capital, a New York-based private equity firm, has entered into its third tower development partnership with Municipal Communications, a statement from the firm reads. Seaport said it invested alongside Municipal’s founder and CEO, Peter Corry. The investment reflects Seaport’s ongoing partnership with Municipal, having previously invested in the company in 2010 and 2018, the firm said.
Municipal, founded in 2010, develops, owns and operates cellular towers across the United States for wireless carriers, according to Seaport. It said that Municipal has sold multiple tower portfolios over the last decade, and most recently completed the sale of a tower portfolio in the third quarter of 2021.
“I’m looking forward to continuing to work alongside Seaport; we’ve had great success working together for over 10 years now,” said Peter Corry. “Municipal’s prospects are bright, and we look forward to continuing to partner with the wireless carriers to develop high-quality tower assets. With an already robust development pipeline, I’m excited about what the company and team can accomplish in the coming years.”
Seaport Capital said that it is a lower middle-market buyout firm with experience and success investing in the cellular tower industry.
“Municipal is a continuation of Seaport’s decades-long investment strategy in tower development, led by an industry veteran with deep carrier relationships,” said Bob Tamashunas, a partner at Seaport Capital. “Peter and his team have built a great company, and we look forward to another successful partnership with the Municipal team.”
Municipal Communications and its financial backer Seaport Capital sold a portfolio of tower assets to Fengate Asset Management, according to a statement from Seaport. As an alternative investment manager, Fengate is focuses on infrastructure, private equity and real estate strategies in North America, Seaport said.
“The Municipal team is proud of the tower portfolio that we built over the last three years and wish Fengate success with the portfolio,” said Peter Corry, CEO of Municipal. “I also appreciate our partnership with Seaport over the last decade and look forward to leading the development of another robust tower portfolio with the Municipal and Seaport teams in the years to come.”
Seaport said that Municipal Communications will continue to own, operate and develop wireless communications towers. It said that Municipal and Seaport Capital will continue their decade-long partnership to develop another portfolio of tower assets for wireless providers.
Bob Tamashunas, a partner at Seaport Capital, said that Corry and his team developed a diverse portfolio of tower assets, anchored by three large wireless providers, during the past three years.
“We wish Fengate success with the portfolio,” Tamashunas said. “We look forward to partnering with Municipal to build another great portfolio of tower assets.”
Houlihan Lokey served as the financial advisor to Municipal and Seaport and assisted in structuring and negotiating the transaction on its behalf, Seaport said.
“Municipal Communications is an Atlanta-based communications infrastructure provider that develops, owns and operates cellular wireless assets throughout the United States,” the Seaport statement reads. “The company’s tower portfolio primarily covers the Northeast, Southeast, Southwest and the Midwest.” For additional information, visit www.municipalcom.com.
Seaport Capital, founded in 1997, described itself as a lower middle-market buyout firm that invests in communication infrastructure and services, business and information services, and media companies.
“Seaport typically invests $10 to $30 million of equity capital in companies generating EBITDA between $3 and $15 million, with the goal of maximizing the return on invested capital,” the company statement reads. “Seaport is investing out of Seaport Capital Partners VI, a 2020 vintage fund. Nearly all of Seaport’s platform investments have been owned by founders or entrepreneurs seeking a collaborative institutional partner to provide the financial and operational resources to grow their businesses and execute on a successful strategic plan.”