Prospect Capital backs fire protection firm with $26M investment
What's the deal? Prospect Capital Corporation (NASDAQ: PSEC) and an affiliate have completed an approximately $26 million investment in Security Fire Systems (SFS), a fire protection company founded in 1993. The deal includes a first lien senior secured term loan and a preferred equity investment, made in collaboration with private equity firm Blackford Capital.
SFS offers fire sprinkler design, installation, testing, maintenance, fire alarms, and emergency response services. It is certified to operate in Texas, California, Arkansas, Colorado, and Oklahoma, serving sectors including hospitality, healthcare, education, retail, aviation, and government.
Why now? The capital is designed to fuel both organic growth and acquisitions in the fire suppression market. Blackford Capital, which acquires and builds lower middle-market companies, sees SFS as a platform for rolling up smaller businesses in the space.
"We are excited to support Blackford Capital on their mission to make SFS a high-performing market leader in the fire suppression space," said Angel Solis, managing director at Prospect.
Blackford's Martin Stein, founder and managing director, said having Prospect as an investor "strengthens SFS's position as a compelling acquirer of more growing and profitable businesses in the fire suppression space."
The signal: The deal reflects a familiar private equity playbook — backing a proven, niche services business with capital to consolidate a fragmented market. Fire protection is a steady, regulation-driven industry with recurring revenue from inspections and maintenance, making it attractive for buy-and-build strategies.
Prospect Capital, a business development company that lends to and invests in middle-market private companies, continues to deploy capital into essential-services businesses with clear growth runways. For Blackford, a Grand Rapids, Michigan-based firm focused on founder- and family-owned companies, SFS fits squarely within its manufacturing and industrial playbook.
Read more: globenewswire.com
