#United States #Greenwich #recapitalization #XKIG #Sterling Investment

Sterling Investment Partners Completes Major Recapitalization of XKIG

On October 28, 2025, Sterling Investment Partners, a renowned private equity firm, announced the successful completion of a recapitalization for XKIG. This initiative marks a significant milestone as it represents Sterling's inaugural single-asset continuation vehicle, designed to bolster XKIG's growth and enhance its value creation in the upcoming years. The recapitalization was co-led by reputable firms including HarbourVest Partners, StepStone Group, and ICONIQ, with additional support from Churchill Asset Management and various syndicate investors. Significant investments also came from Sterling principals, its latest buyout fund, and the management team at XKIG, underlining their commitment and confidence in the company's future.

XKIG has established itself as a national leader in providing essential infrastructure services to electric utility customers throughout the United States. Since Sterling's initial investment in 2022, the company has experienced considerable growth, transforming from a regional vegetation management service provider into a robust, technology-driven enterprise. Currently, XKIG serves more than 85,000 miles of power and transmission lines, employs over 6,500 individuals across 39 states, and operates with a fleet of more than 7,800 rolling assets.

The company has a rich 50-year history of delivering high-quality services that ensure reliability in meeting the operational goals of the electrical grid in the U.S. Charles Santoro, Co-Founder and Managing Partner at Sterling, expressed immense pride in XKIG's growth trajectory and emphasized the firm's enthusiasm in supporting the company's future endeavors. Together with Joe Gault, Senior Partner, and Dan Yu, Partner at Sterling, Santoro highlighted their belief that this recapitalization will significantly fund XKIG's continued expansion and deepen its market reach.

XKIG's leadership, including CEO Randolph Hoover and President Benjamin Hoover, echoed similar sentiments about the company's promising path ahead. They recognized the partnership with Sterling as vital for advancing their operational capabilities and enhancing their presence within the utility sector. Their optimism reflects the successful collaboration thus far and the potential that lies within XKIG's service keys and infrastructure projects.

The recapitalization comes at a pivotal time, as the utility sector faces various challenges, including the impacts of climate change and increasing demand for reliable energy services. XKIG's proactive approach to these challenges, backed by savvy capital investments, positions the company favorably to meet evolving customer needs and capitalize on emerging opportunities.

Evercore served as the lead financial advisor, with Piper Sandler and Eaton Partners assisting in this transaction. The legal aspects of this complex agreement were handled by law firms Kirkland & Ellis and Norton Rose Fulbright, ensuring all regulatory and procedural protocols were met.

About Sterling Investment Partners

Sterling Investment Partners has a rich history of fostering growth in middle-market companies for more than 30 years. With a highly skilled team of investment professionals, Sterling concentrates on control investments that promise sustainable competitive advantages and attractive avenues for value creation. To date, Sterling has successfully executed over 270 transactions, culminating in an aggregate value exceeding $33 billion.

About XKIG

XKIG stands as a crucial player in the infrastructure service sector for power and gas utilities. The company specializes in managing rights-of-way and developing transmission and distribution systems, catering to the unique needs of its clientele for over half a century. Headquartered in Norfolk, Virginia, XKIG's rapid response teams are quick to act during natural disasters, fortifying community integrity and restoring essential services.

As both XKIG and Sterling Investment Partners forge ahead into this exciting phase, industry observers anticipate a significant impact on the utility services landscape as they align their resources to harness growth opportunities effectively.