Neuberger Berman Capital Solutions Announces Major Exit of Investment in ENTRUST Solutions Group

A Major Move in the Market

In a significant development within the investment landscape, Neuberger Berman Capital Solutions, together with its managed funds, has concluded its minority investment in ENTRUST Solutions Group. This exit has been made possible by a strategic sale to Leidos, valued at approximately $2.4 billion. The investment was initially secured in August 2023, which marked the beginning of a profitable partnership.

Background on ENTRUST Solutions Group

ENTRUST, based in Lisle, Illinois, stands as a prominent consulting and engineering service provider focused on the utility and infrastructure sectors. Currently, the company employs over 3,100 professionals across more than 40 locations throughout the United States. The key offerings include a broad range of consulting, design, and engineering services aimed at enhancing and maintaining aging utility infrastructures. This emphasis on infrastructure improvement is especially critical in the context of increasing demand for reliable energy sources in North America.

Insights from Neuberger Berman

J.T. Munch, Managing Director at Neuberger Berman Capital Solutions, expressed satisfaction with ENTRUST's progress, applauding the leadership team for their dedication, which has positioned the company for sustained success. Munch highlighted the rewarding experience of collaborating with ENTRUST's team, emphasizing their commitment to advancing critical infrastructure. Adam Biggam, CEO of ENTRUST, reaffirmed this sentiment, acknowledging Neuberger Berman as pivotal in facilitating strategic investments that have fortified ENTRUST's operational capabilities.

Strategic Significance of the Sale

The sale to Leidos comes with substantial strategic implications. Leidos, a global leader in defense, aviation, information technology, and biomedical research, retains strong financial advisors to navigate this transaction. Citi is serving as a financial advisor, while legal and accounting advisory roles are filled by Davis Polk & Wardwell LLP and PwC, respectively. Neuberger Berman, along with ENTRUST, is also employing the expertise of Houlihan Lokey and Perella Weinberg Partners as financial advisors. The closing of this transaction is anticipated to occur in the second quarter of 2026, contingent on regulatory approvals.

The Bigger Picture

Neuberger Berman's involvement in ENTRUST reflects its ongoing commitment to supporting American infrastructure development. With over $150 billion in investor commitments across various strategies, Neuberger Berman Private Markets follows a long history of investing in critical sectors that foster growth and innovation. ENTRUST has experienced rapid growth, marked by its ability to expand geographically and enhance service capabilities through strategic acquisitions and workforce scaling.

Looking Ahead

The exit marks a successful chapter for Neuberger Berman Capital Solutions, which specializes in providing tailored capital solutions for private equity-owned companies. As the investment landscape continues to evolve, Neuberger's strategies highlight the importance of adaptability and foresight in navigating future challenges. As ENTRUST transitions into its new partnership with Leidos, its trajectory promises to contribute significantly to the future of critical power infrastructure in North America. Neuberger Berman is excited about watching the next phase of ENTRUST's journey unfold and remains committed to supporting innovation within the private markets.

With infrastructure needs growing, the successful completion of this deal signals a robust future for both ENTRUST and the broader utility sector, a bright sign for the ongoing development and modernization efforts across North America.