Certares, New 2ND Capital Back Guardian Alarm

Certares, a prominent investment firm specializing in the travel, hospitality, and business services sectors, has successfully finalized a single-asset continuation fund. This strategic move allows the firm to prolong its collaboration with Guardian Alarm, a significant player in the security, fire detection, access control, and home automation solutions market. The newly established fund, spearheaded by investment vehicles managed by New 2ND Capital, offers existing shareholders of Guardian Alarm a pathway to liquidity while simultaneously injecting fresh capital to fuel the company's expansion initiatives and acquisition strategy.

Established in 1930 and headquartered in Southfield, Michigan, Guardian Alarm stands as one of the nation's largest vertically integrated providers in its field. The company caters to both commercial and residential clients across more than ten states, primarily in the Midwest and Southern regions. Guardian's comprehensive service model encompasses the entire customer lifecycle, from initial system design and installation to round-the-clock in-house monitoring, ongoing maintenance, and service, positioning it as a one-stop solution provider.

This transaction underscores a growing trend in the private equity space where continuation funds are increasingly utilized to provide liquidity to existing investors while enabling portfolio companies to access further growth capital and maintain strategic partnerships. The security services sector, in particular, has seen robust activity, driven by escalating demand for integrated safety and automation solutions in both residential and commercial settings. The market for electronic security systems in the U.S. is projected to experience significant growth, with analysts anticipating a compound annual growth rate exceeding 7% over the next five years, reaching tens of billions of dollars.

Brent Uhl, Chief Executive Officer of Guardian Alarm, expressed enthusiasm for the continued partnership with Certares and the addition of New 2ND Capital. "Guardian has cultivated a distinct market position built on superior customer service, a complete array of security offerings, and an adaptable operational framework," Uhl stated. "The infusion of capital from this transaction will empower us to intensify investments in our operations and accelerate our acquisition agenda, thereby broadening Guardian's footprint in established and emerging markets."

Richard Moreau, Managing Director at Certares, echoed this sentiment, highlighting the firm's commitment to supporting Guardian's trajectory. "We are delighted to extend our support to Guardian Alarm as it capitalizes on its strong performance and embarks on its next phase of growth, encompassing both organic development and strategic acquisitions," Moreau commented. Zach Lazar, also a Managing Director at Certares, added that Guardian has evolved into a premier security and fire services platform with substantial growth potential and a highly scalable operational structure.

Rob Luttrell, Partner at New 2ND Capital, emphasized Guardian's alignment with their investment criteria. "Guardian Alarm exemplifies the caliber of high-quality businesses we aim to support through our continuation fund investments," Luttrell remarked. "The company boasts a well-established market presence, a compelling recurring revenue model, and a proven history of expansion. We are pleased to collaborate with Certares and Guardian's management team, and we anticipate supporting the company through its subsequent growth phase."

William Blair acted as the exclusive financial advisor to Certares and Guardian Alarm. Legal counsel for Certares and Guardian Alarm was provided by White & Case LLP and Sidley Austin LLP, while Ropes & Gray LLP served as legal advisor to New 2ND Capital.