Ares, LGP Structure $850 Million Continuation Vehicle for Convergint

Event summary

  • Ares and Leonard Green & Partners (LGP) have closed an $850 million single-asset continuation vehicle for Convergint Technologies.
  • LGP's Sage Fund led and fully underwrote the vehicle, with Vintage Strategies at Goldman Sachs Alternatives also participating.
  • Ares Private Equity has made a new, substantial investment in Convergint, maintaining a shared control position with LGP and Harvest Partners.
  • Convergint, a global leader in security and safety solutions, has seen Adjusted EBITDA quadruple since Ares’ initial investment in 2018.
  • The deal extends Ares’ partnership with Convergint and supports the company’s continued growth, including over 40 acquisitions.

The big picture

This deal highlights the growing popularity of single-asset continuation vehicles as a way to extend the life of successful private equity investments, particularly in sectors like security and safety where consistent demand exists. The structure allows existing investors to realize gains while providing additional capital for continued growth. With Ares managing nearly $623 billion in assets, this transaction underscores the firm’s continued focus on growth equity and strategic partnerships within the technology sector.

What we're watching

Capital Structure
The success of this continuation vehicle model hinges on whether LGP and Ares can continue to attract capital for similar structures, indicating investor appetite for this type of deal.
Acquisition Strategy
Convergint's aggressive acquisition strategy will need to be carefully managed to avoid integration challenges and ensure continued value creation, especially given the current economic climate.
Market Dynamics
The reliance on 'secular tailwinds' in security and safety solutions means Convergint's growth is vulnerable to shifts in geopolitical risk perception and technological disruption.

Related topics

Technology