Peterson Partners Invests In Eyewitness Surveillance
- Peterson Partners Makes a $2 Million Lead Investment in Innovative Remote Video Surveillance and Monitoring Company
- Funds Will Be Utilized to Expand the Footprint of Eyewitness Surveillance within, beyond the Automobile Dealership Market
July 29, 2011 /Press Release/ — 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.
“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.”
About Peterson Private Equity
Peterson Private Equity, located in Salt Lake City Utah, is the Private Equity group of Peterson Partners Inc. Peterson Private Equity is a middle market investor that is growth oriented, flexible, and has a long-term mindset. Over the past 11 years, Peterson has made investments across the United States, Canada, and Brazil. Peterson Partners Inc. is an independent investment management firm with assets under management across a variety of alternative asset classes. Peterson Partners and its affiliates have invested in over 150 companies, primarily in the US, but also Canada, Europe, Mexico, Brazil and India.