#United States #Los Angeles #Hollyport Capital #Brentwood Associates #Watermill Express

Brentwood Associates Closes a $410 Million Continuation Fund for Watermill Express

Los Angeles, July 21, 2025 – Brentwood Associates, a prominent private equity firm focused on middle-market growth, has announced the successful closing of an oversubscribed single-asset continuation fund aimed at propelling the growth of Watermill Express, LLC. This innovative company is known for its affordable and safe drinking water and ice, provided through convenient self-service drive-up stations.

The transaction marks a pivotal moment in Brentwood’s partnership with Watermill, further extending its collaboration with the management team while injecting additional capital to fuel the company's next growth phase. The continuation fund is significantly backed by key investors including Hollyport Capital as the lead investor, alongside Pantheon and Portfolio Advisors.

Brentwood remains optimistic about Watermill’s growth trajectory and is also investing through its Fund VII. The firm’s general partnership is additionally reinvesting proceeds from the transaction, highlighting their strong commitment to Watermill’s mission and market potential.

Expansion and Sustainability Initiatives
Established in 1984, Watermill has expanded its operations to nearly 1,300 stations spanning eight states, primarily along the West Coast and in the Sunbelt regions. Throughout its 40-year history, the company has provided safe drinking water and ice to over 10 million customers, effectively preventing an estimated 15 billion single-use plastic water bottles from reaching landfills. Under Brentwood’s guidance, Watermill has experienced substantial growth, tripling its adjusted EBITDA through new station openings, upgrades to its water-and-ice stations, and the acquisition of its remaining franchise operations.

Going forward, Watermill is poised for organic growth, with significant opportunities to launch new stations, upgrade existing facilities, and explore strategic acquisitions. This evolving strategy aims to broaden its geographic footprint and enhance its offerings in the drinking water and ice sectors.

Commitment to Clean Water
Eric Reiter, Partner at Brentwood and Chairman of Watermill’s Board, stated, “This transaction showcases our confidence in Watermill’s potential for continued growth and its vital mission of making clean water accessible and affordable for communities across the nation. We take pride in backing a business that aligns strong performance with meaningful social impact.”

Watermill's CEO, Mike Gallagher, shared his enthusiasm for the future, stating, “This funding positions Watermill to effectively tackle America’s clean water challenges. Our self-service kiosks have made high-quality, affordable drinking water and ice available to those who need it most for over four decades. We look forward to collaborating with landlords from grocery to convenience stores who understand the value of providing essential, sustainable services to their neighborhoods.”

Investment Details
Toros Yeremyan, Managing Director at Brentwood, noted, “This third-party-led process presented our investors with an accelerated realization option at a competitive market price. It not only expands the financial resources available to Watermill but also supports the continuation of its long-term growth strategy.”

Richard Grindrod, Partner at Hollyport Capital, expressed their excitement about the partnership, saying, “We are thrilled to further our collaboration with Brentwood as the lead investor in this continuation fund.”

PJT Partners acted as lead financial advisor, North Point Mergers and Acquisitions served as financial advisor, and Kirkland & Ellis LLP provided legal counsel to Brentwood, while Hollyport was represented by Proskauer Rose LLP.

About Watermill Express
Founded in Brighton, Colorado, in 1984, Watermill Express stands as a national leader in sustainable refill stations for affordable, safe drinking water and ice. With nearly 1,300 stations nationwide, it primarily serves communities along the West Coast and in the Sunbelt regions. For more information, visit www.watermillexpress.com.

About Brentwood Associates
As a Los Angeles-based private equity investment firm with over 30 years of experience, Brentwood Associates specializes in investing in middle-market, growth-oriented essential services companies. With a portfolio exceeding 50 companies and transaction values surpassing $7 billion, Brentwood takes pride in its expertise and commitment to partnering with entrepreneurs and management teams in developing leading businesses. Visit www.brentwood.com for further details.

About Hollyport Capital
Established in 2006, Hollyport Capital focuses on capturing value from legacy private equity assets. As a specialist secondary investor, Hollyport offers tailored liquidity solutions, having raised eight secondary funds and managing over $9 billion in assets. More information can be found at www.hollyportcapital.com.