#United States #Boston #Fort Point #Strata Information Group #Ridgemont Equity

Fort Point Capital's Successful Exit from Strata Information Group

On January 22, 2025, Fort Point Capital, a Boston-based private equity firm focused on lower middle-market service businesses, announced a significant milestone: the successful sale of its investment in Strata Information Group (SIG) to Ridgemont Equity Partners. This exit encapsulates the firm's strategic approach to enhancing portfolio companies and aligning with growth-oriented partners.

Strata Information Group Overview

Founded in 1987 and headquartered in San Diego, SIG stands out as a leading provider of managed services primarily designed for higher education sectors. Its comprehensive offerings encompass Enterprise Resource Management (ERP), Customer Relationship Management (CRM), cybersecurity enhancements, and a suite of other managed service solutions tailored for institutional needs.

Under Fort Point's stewardship since 2021, SIG underwent a remarkable transformation. The collaboration with Fort Point's management team enabled the company to transition from being founder-owned to a robust, technology-agnostic service provider within the educational landscape. This shift was marked by significant investments in management, technology infrastructure, and a strong internal growth strategy that established SIG as a leader in higher education technology consulting.

Driving Growth and Development

During Fort Point's holding period, SIG implemented critical changes that positioned the company favorably in the marketplace. The firm prioritized the professionalization of SIG's systems and infrastructure, which not only streamlined operations but also enhanced service delivery across various offerings. Key growth drivers included the successful execution of three strategic acquisitions, all aiming to broaden SIG's service capabilities and complement its already strong organic growth trajectory.

Henry Eimstad, SIG's co-founder, remarked on the importance of maintaining the company's unique culture during its transformation. He expressed satisfaction with the partnership with Fort Point, emphasizing their shared vision for driving SIG's growth while preserving its core values. Brent Rhymes, the CEO of SIG, echoed this sentiment, highlighting the alignment between SIG's strategic goals and Ridgemont Equity Partners' resources.

A Focused Future with Ridgemont

Moving forward, SIG looks towards a promising future with Ridgemont Equity Partners, who brings substantial resources to accelerate SIG's ongoing journey of growth. The new partnership aims to leverage additional human capital investments and extend SIG's service capabilities in the higher education sector. Fort Point Capital plans to remain a minority investor in SIG as it embarks on this new phase of development.

Conclusion

The transaction highlights Fort Point Capital's effective model of driving growth within its portfolio companies while ensuring that the core team and culture of those companies are not only preserved but enhanced. With SIG's new partnership with Ridgemont, the stage is set for further innovation and service excellence in the higher education technology space. The future looks bright for both SIG and Fort Point as they continue to champion quality service delivery in this specialized industry.