Strength Capital Establishes Continuation Vehicle to Accelerate Growth and Strategic Expansion of ESP Associates
Strength Capital Partners, LLC (“Strength Capital” or “SCP”), a prominent lower middle-market private equity firm known for its disciplined and long-term investment approach, has successfully closed a single-asset continuation vehicle dedicated to extending its investment in and commitment to ESP Associates, Inc. (“ESP” or the “Company”). This transaction marks a significant step in Strength Capital’s ongoing strategy of supporting high-potential portfolio companies with enhanced resources to scale and diversify.
The continuation vehicle, formed and managed by Strength Capital, was led by investment funds affiliated with global investment firm Neuberger Berman. The deal also included substantial rollover investments from both Strength Capital and ESP’s management team, signaling strong internal confidence in ESP’s future direction and growth strategy.
This transaction accomplishes several key objectives. First, it provides meaningful liquidity to existing Strength Capital investors, allowing them to realize value from their earlier investment while offering an opportunity to maintain exposure through the continuation fund. Second, and equally important, it unlocks fresh capital that will empower ESP Associates to pursue a variety of organic growth initiatives and strategic acquisitions over the coming years.
A Growing Platform with Deep Roots in Infrastructure and Engineering
Founded in 1986 and headquartered in Fort Mill, South Carolina, ESP Associates is a well-established multidisciplinary engineering and infrastructure consulting firm. The Company provides a wide array of services to both public and private sector clients throughout the United States. With more than three decades of experience in the industry, ESP has built a strong reputation for delivering innovative, high-quality solutions in civil engineering, land planning, surveying, geospatial analysis, environmental consulting, transportation planning, and construction services.
Since Strength Capital’s initial investment in ESP in 2018, the Company has undergone a significant transformation. Working in close collaboration with ESP’s management team, SCP has implemented a broad range of strategic value creation initiatives. These efforts have included optimizing internal operations, investing in leadership development, and launching targeted expansion efforts across complementary markets.
Over the past five years, this partnership has also led to the successful completion of five strategic acquisitions. These acquisitions have played a crucial role in broadening ESP’s geographic presence, extending the Company’s capabilities into new markets, and diversifying its end-user customer base. As a result, ESP now operates with a unified and well-integrated platform, capable of delivering a full suite of infrastructure design and consulting services nationwide.
A New Phase of Growth Backed by Long-Term Capital
Mark McCammon, Co-Founder and Managing Partner of Strength Capital, emphasized the significance of this continuation vehicle in positioning ESP for its next phase of growth. “The completion of this continuation vehicle is a significant milestone for both Strength Capital and ESP,” McCammon stated. “This transaction allows us to reaffirm our long-standing commitment to the Company and its leadership, while at the same time providing a compelling liquidity opportunity for our existing investors.”
McCammon added that the newly structured continuation vehicle ensures that ESP is well-positioned to pursue ambitious growth goals, supported by additional capital and strategic flexibility. “As we enter this next chapter, we plan to continue executing on our original vision for ESP – building a market-leading, broadly diversified infrastructure platform that is aligned with long-term demographic and environmental tailwinds. With the support of our new partner and continued backing from the ESP management team, we’re excited to accelerate investments in talent, technology, and strategic M&A that will benefit employees, clients, and shareholders alike.”
Neuberger Berman Joins as Lead Investor in the Continuation Vehicle
As lead investor in the continuation vehicle, Neuberger Berman brings not only capital but also strategic alignment with Strength Capital’s value creation vision. Frank Guglielmo, Managing Director at Neuberger Berman, commented on the partnership: “We have been impressed by the Strength Capital team’s disciplined approach and by the impressive evolution of ESP Associates under their stewardship. We are thrilled to participate in this continuation fund transaction and are confident in the platform’s long-term potential.”
Guglielmo further added, “Recapitalizing ESP Associates with fresh follow-on capital gives Strength Capital and the management team the resources they need to accelerate the Company’s growth trajectory. We believe this combination of organic growth, driven by industry demand and operational excellence, and targeted acquisitions will continue to create meaningful value for all stakeholders involved.”
Legal and Advisory Teams Support Transaction Execution
The continuation vehicle transaction was supported by an experienced group of legal and financial advisors. Taft Stettinius & Hollister LLP served as legal counsel for Strength Capital, ensuring a smooth transaction process and alignment with regulatory and fiduciary responsibilities. Eaton Partners, a division of Stifel and a leading placement agent, acted as the exclusive financial advisor to Strength Capital and ESP, bringing deep market insights and capital markets expertise to the deal.
On the investor side, Neuberger Berman was represented by Gibson, Dunn & Crutcher LLP, a globally recognized law firm with a strong track record in private equity transactions. The collaboration among all parties enabled the successful structuring and closing of the continuation vehicle, paving the way for continued partnership and sustained value creation.
Strategic Outlook for ESP Associates
With a renewed capital structure and the backing of institutional partners, ESP Associates is now poised to deepen its service offerings, enter new regional markets, and make significant investments in talent and technology. As infrastructure investment remains a national priority—bolstered by federal funding, population growth, and environmental resilience goals—ESP is uniquely positioned to meet rising demand for engineering and infrastructure planning services.
This transaction ensures that ESP has the financial strength and strategic support necessary to stay ahead of evolving client needs and industry trends. The Company’s leadership team, now further empowered by a strengthened investor base, will continue to focus on executing its mission: delivering integrated, client-centric solutions that shape communities and improve lives.
The closing of this single-asset continuation vehicle represents a major milestone for Strength Capital Partners and ESP Associates. By offering liquidity to original investors and securing long-term capital to support growth, this deal exemplifies the best of private equity stewardship. It reflects Strength Capital’s commitment to building durable businesses through partnership, investment discipline, and strategic foresight. As ESP embarks on its next phase, the Company is well-positioned to expand its footprint, drive innovation, and deliver lasting value across the infrastructure landscape.
About Strength Capital Partners
Founded in 2000, Strength Capital Partners is a private equity firm with offices in Birmingham, MI, Cincinnati, OH and Denver, CO. SCP invests throughout the United States in lower middle-market business with $4 – $25 million in EBITDA. They pursue investments in a wide range of industries with a focus on manufacturing, distribution, and infrastructure and industrial services. Strength Capital’s core strategy is “Industrial Consolidation” whereby they seek to grow and diversify their platform companies through a combination of strategic acquisitions and organic growth. For more information, please visit www.strengthcapital.com.
About ESP Associates
ESP Associates, Inc., a portfolio company of Strength Capital Partners, is a national multidisciplinary engineering design and infrastructure consulting firm providing clients with comprehensive, scalable solutions across the transportation, power and utility, water, broadband, municipal, and community development markets. Built on an entrepreneurial spirit, ESP is structured to stay innovative and adaptive. Since its inception in 1986, ESP has continually expanded its breadth of services, geographic reach, technology capabilities, and organizational talent to deliver complete project solutions that meet the growing needs of its clients. Now with nearly 800 employees in more than 30 offices across the U.S., ESP is well-equipped to solve the complex challenges for today’s rapidly changing environment. For more information, visit www.espassociates.com.
About Neuberger Berman
Neuberger Berman is an employee-owned, private, independent investment manager founded in 1939 with over 2,800 employees in 26 countries. The firm manages $515 billion of equities, fixed income, private equity, real estate and hedge fund portfolios for global institutions, advisors and individuals. Neuberger Berman’s investment philosophy is founded on active management, fundamental research and engaged ownership. Neuberger Berman has been named by Pensions & Investments as the #1 or #2 Best Place to Work in Money Management for each of the last eleven years (firms with more than 1,000 employees). Visit www.nb.com for more information. Data as of March 31, 2025.
