A news release come across my desk yesterday about Horsemen Partners, a new investment firm run by a couple guys who want to buy a security company as a platform for growth. Let’s just say I’ve seen this kind of news release before, but, this one caught my eye because of these guys’ background: They’re both business school grads and former Navy SEALs.
They’ve got backing to buy a security company, but my question was why security? Why do they want to get into this business?
I spoke to one of Horsemen Partners’ principals, Sam Alaimo. this morning. Alaimo said he and his partner, Mike Lahiff, could have invested in any number of industries, and they did take a close look at some health care-related businesses, but they settled on security for financial and personal reasons.
“We like the growth prospects, we like the [ongoing] evolution of the security industry and we like the people in the industry,” Aliamo told me.
Alaimo and Lahiff got to know security technology, specifically video monitoring and sensor technology, while serving as Navy SEALs in Afghanistan. Serving in a remote area, they saw the benefit of security technology in Afghanistan and were able to leverage these capabilities to safeguard Americans, locals, and other innocent people in the area.
“The technology has endless capacity if utilized correctly,” he said.
Horsemen Partners is looking to buy a platform for growth in the security industry. They will be active operators in the business, but they’re open to negotiation on several items such as whether the current owner retires completely or stays on in some capacity.
Geographic location is not important. Lahiff and Alaimo will relocate, “whether it’s Billlings, Montana or Austin, Texas,” Alaimo said. And, Horsemen is also not set on a certain type of security business. Alaimo said that eventually whatever business they buy will do alarm systems installations, alarm monitoring, some systems integration, sensor technology and video monitoring—but the business as it stands now “does not have to do it all, it could be any one of these,” Alaimo said.
What Alaimo and Lahiff are looking for is an independent, well-run business that has potential to keep growing. They want a company that’s been cash-flow positive for the past three years, with $5- to $30 million in revenue and some RMR.
“We’re not ADT rolling up a business, we’re two guys who want to buy a private business and take care of it. We’ll stick with the company’s core capabilities but also bring in more—some systems integration, DIY—depending on its capabilities, what is has now and also where the market heads,” Alaimo said.
Horsemen is backed by institutional and individual investors. such as: Anacapa Partners; Search Fund Partners; The Cambria Group Relay Investments; Rich Augustyn & Larry Dunn of NIP Group, a specialized business insurance and risk management intermediary; Tom Cassutt, managing partner of TD Investment Company and David Lazier, managing partner of TD Investment Company; Doug Tudor
managing partner of Ravenscourt Partners; Bob Oster a professional economist and banker and private investor; Tim Ludwig, a private investor; A.J. Wasserstein, CEO of Onesource Water; Matthew Burr, general partner at Matland Capital; and, Matt Estep managing partner and founder of Bosworth Capital Partners. The investment company's web site has more information.