Private Equity Infusion Aims to Fortify Houston's Water Lifeline

HOUSTON, TX – March 30, 2026 – In a significant move to bolster one of Houston's most critical sectors, private equity firm Del Monte Capital has announced a majority recapitalization of DLG Infrastructure Services, a key player in the city's municipal water infrastructure maintenance and repair. The partnership injects vital capital into a company on the front lines of addressing Houston's aging, flood-prone water systems, highlighting a growing trend of private investment in essential public services.

The deal, which marks Del Monte Capital's third platform investment, positions DLG for accelerated growth while ensuring leadership continuity. Co-founder Chris Scott-Ford will increase his ownership stake and remain as President, continuing to oversee all day-to-day operations. The move comes as his founding partner, Danny Glover, retires.

A Lifeline for Houston's Aging Arteries

The investment arrives at a critical juncture for Houston. The city's water infrastructure, much of it decades old, is under immense strain from rapid population growth and the relentless threat of severe weather. Houston Public Works has reported staggering challenges, including a recent annual water loss of over 30 billion gallons, largely due to leaks in an antiquated pipe network. At one point, the department faced a backlog of over 1,400 active work orders for water-related issues.

Experts estimate that a staggering $15 billion is needed to adequately repair and upgrade the city's water and wastewater systems, including a multi-billion-dollar overhaul for the 70-year-old East Water Purification Plant. For a city where, as Del Monte Capital's Managing Partner David Hartland notes, "every major storm is a reminder of what's at stake," the work done by companies like DLG is not just about construction—it's about public safety and urban resilience.

"Growing up in Houston, you learn early on how much this city depends on its water and drainage infrastructure," Hartland stated. "Investing in a company that does this work, does it well, and does it safely is something we take genuine pride in. DLG has built an outstanding reputation across the Houston area, and we couldn't be more excited to support Chris and the entire team as they continue that mission."

Since its founding in 2020, DLG has completed nearly 1,000 projects spanning water line upgrades, trenchless pipe replacement, sewer rehabilitation, and neighborhood flood mitigation, directly addressing the city's most pressing infrastructure needs.

The New Wave of 'Recession-Resistant' Investing

Del Monte Capital's investment in DLG underscores a deliberate strategy focused on what the firm calls "mission-critical, recession-resistant" service businesses. This approach targets companies providing essential services that remain in demand regardless of economic cycles. Founded in 2023, the Texas-based firm has quickly carved out a niche in the lower middle-market, earning recognition from Inc. Magazine as a "Founder Friendly Investor."

This investment philosophy is evident in DMC's portfolio. The firm previously acquired Integrity Elevator Solutions, a provider of elevator installation and maintenance, and The Cornerstone Companies, which specializes in complex underground utility installations for water and wastewater plants in the Dallas-Fort Worth area. Each investment reflects a focus on foundational infrastructure and services that are indispensable to commercial operations and public welfare.

The DLG partnership fits perfectly within this framework. Municipal water services are non-discretionary, and the need for maintenance and upgrades only grows as infrastructure ages and urban populations expand. By backing DLG, Del Monte Capital is not just buying into a company; it is investing in a long-term, government-mandated need for infrastructure renewal.

Charting a Course for Growth While Honoring a Legacy

For DLG Infrastructure Services, the partnership is about scaling its impact without sacrificing its identity. The decision to partner with Del Monte Capital was the result of a meticulous search for a partner that understood the company's culture and operational integrity.

"As part of this process, I talked to a lot of private equity firms before choosing a partner, and they all said the right things," explained Chris Scott-Ford, President of DLG. "What set DMC apart was that they actually meant it. They understood our business, respected what we had built, and made it clear from day one that my role and our culture weren't up for negotiation. This is exactly the go-forward partnership I was looking for."

This sentiment was echoed by retiring co-founder Danny Glover, who emphasized the importance of trust in the transition. "Chris and I built something we're genuinely proud of, and finding the right partner to carry it forward was something I didn't take lightly," Glover said. "The Del Monte team earned our trust throughout this process, and I couldn't be more confident in where this company is headed."

To support this new chapter of expansion, DLG has also appointed Chad Cross as Chief Financial Officer, a strategic move designed to manage the financial complexities of accelerated growth and larger-scale projects.

Navigating a Favorable Tide of Public Funding

The timing of the Del Monte-DLG partnership is particularly opportune, aligning with an unprecedented wave of public funding aimed at modernizing Texas's water infrastructure. In 2025, Texas voters approved Proposition 4, establishing the Texas Water Fund, which is set to channel over $1 billion annually into state water projects for the next two decades. This fund specifically allocates capital for repairing aging pipes and developing new water supplies.

Locally, the City of Houston's FY2025-2029 Capital Improvement Plan (CIP) has earmarked $921 million for storm drainage system improvements alone. This influx of public capital creates a robust and predictable market for specialized contractors. With Del Monte Capital's strategic backing and financial resources, DLG Infrastructure Services is now exceptionally well-positioned to compete for and execute these critical, large-scale public works projects, ensuring the firm plays an even greater role in securing Houston's water future.