Seacoast Capital, a lower-middle market non-control growth capital investor provided Focus with a combination of equity and debt to support a majority recapitalisation of the Company by members of its management team and to provide working capital in support of its continued growth. In concert with the transaction, Doug Alexander stepped down as Focus’ CEO, but plans to continue his strategic relationship with the Company as a member of its Board of Managers. Focus’ prior CFO Chris Caprio was simultaneously promoted to CEO of the Company.
The financing marked the first investment out of Seacoast’s fifth fund, Seacoast Capital Partners V, L.P. (“Seacoast V”), a $280MM fund established to invest non-control equity and debt capital alongside of manager/owners of privately held businesses in support of growth, recapitalisations and management/shareholder buyouts. Seacoast held a closing on Seacoast V in August 2023.
Focus, headquartered in Boston, MA, is an award-winning provider of hardware, software and managed IT and professional services to businesses across the U.S. The Company’s service offering includes managed security, outsourced IT helpdesk and data centre services as well as cloud implementation/migration, cloud assessment, network buildout and data analytics/consulting services. Focus also offers IT software and equipment from leading global OEMs to provide customised, leading-edged solutions for the development of customers’ critical IT infrastructure.
Chris Caprio remarked, “We evaluated a number of potential equity and debt partners to support us in our management buyout and Seacoast’s unique focus on working directly with management teams in these types of situations was a major differentiating factor for us. Alan and the Seacoast team were instrumental in helping us navigate the complexities of the transaction and in them we found the perfect partner to help us accelerate our growth plan over the coming years.”
Doug Alexander stated, “I’m excited for Chris and the rest of the management team. I am eager to continue working with Focus and Seacoast as a member of the Board and think the Company’s best days lie ahead. Seacoast was transparent throughout the entire process with us, they did what they said they were going to do, and ultimately, I believe they will be a great partner for Focus going forward.”
Alan Rich, a Partner at Seacoast, added “We are thrilled to partner with Focus, a company that has garnered an excellent reputation within the managed IT services industry and is well-positioned to capitalise on attractive macro tailwinds, particularly within the cybersecurity space. The Company has assembled a very strong management team and we look forward to working together with them and Doug in his new role on the Board.”