Josh Harris’ 26North Partners Seals First Private Equity Deal with Acquisition of ArchKey Solutions

26North Partners, the alternative asset management firm co-founded by Apollo Global Management Inc.’s Josh Harris, has made a significant entrance into the private equity space with its first major acquisition. The New York-based firm announced it has agreed to acquire ArchKey Solutions, a leading provider of electrical, technological, and specialty systems, in a deal that values the company at more than $1 billion, including debt.

This milestone acquisition marks a strategic move for 26North Partners, as the firm looks to establish itself as a formidable player in the private equity sector. ArchKey Solutions, headquartered near St. Louis, Missouri, offers a wide range of services, including installation, retrofit, design, and maintenance for complex technological and electrical systems. The company has an impressive portfolio of high-profile projects, including the cutting-edge Sphere in Las Vegas, a Major League Soccer stadium in St. Louis, and the Smithsonian’s National Museum of African American History & Culture in Washington, D.C.

Steve Stone, CEO of ArchKey Solutions, emphasized the growing demand for the company’s services in an increasingly technology-driven world. “Our goal is to continue providing top-tier services to businesses that require complex electrical and technology-based solutions,” Stone said. With 26North’s backing, ArchKey is set to deepen its involvement in sports, entertainment, and arena venues, leveraging 26North’s extensive network to fuel growth.

One Rock Capital Partners, which acquired a stake in ArchKey in 2021, will retain its investment alongside ArchKey’s current and former management, signaling confidence in the company’s future prospects under the new ownership. The deal highlights 26North’s strategy to target high-quality, cash-generative businesses that are poised to benefit from strong secular growth trends.

26North’s private equity arm is led by Mark Weinberg, a former executive at Brookfield Asset Management, and boasts an experienced team, including an alpha creation group headed by Jon Garcia, a former partner at McKinsey & Co. The firm aims to drive value creation and strategic growth in its portfolio companies, positioning them for long-term success.

Financial advisement for the deal was provided by Banco Santander SA, Mizuho Financial Group Inc.’s Greenhill & Co. affiliate, and BMO Capital Markets. Financing arrangements are being handled by Royal Bank of Canada, Santander, Mizuho, and BMO, further underscoring the significant scale and ambition of the transaction.

As 26North Partners embarks on this new chapter with its acquisition of ArchKey Solutions, the firm is poised to make waves in the private equity industry, signaling its intent to become a key player in the alternative asset management landscape.

Financial Desk