Southern Ute Tribe Acquires Berg Group in Strategic Construction Deal

IGNACIO, Colo. – February 24, 2026 – In a significant move that bridges tribal economic development with the future of construction, Kava Equity Partners, the direct private equity arm of the Southern Ute Indian Tribe Growth Fund, has announced its acquisition of The Berg Group. The deal marks a strategic investment into the rapidly growing sector of industrialized construction and positions the Tribe as a key player in modern building innovation.

The Berg Group, founded in 1967 as a commercial drywall contractor, has evolved into a nationally recognized specialty contractor known for its advanced, integrated construction solutions. The company will retain its existing management team, led by CEO Jack Szmanda, ensuring operational continuity while benefiting from the substantial resources and long-term vision of its new partner.

“Kava’s acquisition of Berg marks a powerful next chapter for the company, our team, and the clients we serve,” stated Szmanda in the official announcement. “Their long-term partnership mindset positions Berg to scale with discipline, pursue new opportunities nationwide, and create lasting value for our team and trusted partners.”

A Bet on the Future of Building

This acquisition is far more than a simple financial transaction; it represents a calculated entry into one of the construction industry’s most transformative trends. The Berg Group has carved out a niche by moving beyond traditional methods, specializing in complex interior and exterior building systems that leverage prefabrication, modular components, and Building Information Modeling (BIM). This approach, often termed industrialized construction, directly addresses some of the sector's most pressing challenges, including skilled labor shortages, project delays, and cost overruns.

Industry analysis supports the strategic rationale behind the deal. The global market for modular and prefabricated construction is on a steep upward trajectory, with some projections estimating it will surpass $300 billion by 2035. This growth is fueled by an urgent need for efficiency, quality control, and speed, particularly in the high-performance environments where The Berg Group excels, such as data centers, advanced manufacturing plants, and cleanrooms. The firm’s focus on off-site manufacturing in controlled environments allows for higher precision, improved safety, and significantly compressed project timelines.

The Berg Group had already been expanding its footprint in this area, notably with its 2022 acquisition of "digg," the interior construction division of Corporate Interior Systems, which bolstered its prefabrication capabilities. With the backing of Kava Equity Partners, the company is now poised to accelerate this growth, capitalizing on a market that increasingly favors smarter, technology-enabled building solutions over conventional on-site construction.

Tribal Sovereignty Through Strategic Investment

The acquisition is a landmark for the Southern Ute Indian Tribe Growth Fund, representing a sophisticated step in its long-term economic diversification strategy. Established in 2000, the Growth Fund was designed to steward the Tribe’s wealth beyond its finite natural resource holdings, creating sustainable prosperity for future generations. Today, it manages a diverse portfolio with business units valued at a combined $4 billion, spanning energy, real estate, and private equity.

Kava Equity Partners, launched in 2023 as the Growth Fund’s direct investment platform, embodies this forward-thinking approach. Operating with what it calls “patient capital,” Kava is unencumbered by the short-term exit pressures of traditional private equity, allowing it to foster genuine, long-term partnerships with its portfolio companies. This philosophy is evident in its recent investments, including the 2024 acquisition of environmental remediation firm Arrowhead Contracting, which also reflected a strong alignment with the Tribe's values.

Shane Seibel, Executive Director of the Southern Ute Indian Tribe Growth Fund, highlighted the deal's dual benefit. “By bringing Berg into the Kava portfolio, we are investing in a company at the forefront of industrialized construction, prefabrication, and technology-enabled building solutions while upholding the cultural values that guide the Tribe’s long-term investment philosophy,” he said.

A Partnership Forged on Shared Values

Central to the transaction is a deep cultural alignment between the two organizations. Leaders from both sides emphasized a shared commitment to integrity, safety, and continuous improvement—principles that form the bedrock of the Southern Ute Indian Tribe’s business ethos. This focus on shared values is a hallmark of Kava’s investment strategy, which seeks partners who appreciate the strategic and business value of aligning with the Tribe.

“This partnership reflects our commitment to investing in companies that honor the values of the Southern Ute Indian Tribe while delivering strong long-term economic opportunity,” said James Dudley, Managing Director of Kava Equity Partners. “Berg’s culture of integrity, safety, and continuous improvement make them an ideal fit for Kava and the Growth Fund.”

The decision to retain The Berg Group’s leadership team underscores this partnership approach, signaling confidence in the existing strategy and a desire for stable, sustainable growth rather than a disruptive takeover. The deal’s financing structure further reinforces its strategic nature. KeyBank Native American Financial Services, a division with deep expertise in tribal economic development, served as the sole lender, providing senior secured credit facilities to capitalize the transaction and support future operations.

With this acquisition, The Berg Group gains a powerful, long-term partner dedicated to fueling its expansion and innovation. For the Southern Ute Indian Tribe, the investment is a bold stride into the future of a core industry, demonstrating how indigenous capital can be a powerful force for driving economic growth and technological advancement in the modern economy.