The sale of RESA Power by Investcorp to middle-market PE firm Kohlberg highlights strong demand for infrastructure services in the exit market. Houston-based RESA provides comprehensive services to the power services industry, including maintenance, testing and systems integration, for electrical infrastructure across North America.
When Investcorp first underwrote the transaction in 2021, the firm was guided by an “electrification of everything” theme. As electricity demand increased to support the growth of AI and data centers that power it, RESA’s role in the electrical services ecosystem became increasingly prominent during Investcorp’s hold period.
Accelerated Exit
The exit completed Investcorp’s five-year value creation plan in just three-and-a-half years. During the hold period, RESA completed 14 add-on acquisitions, implemented an employee ownership plan, and expanded its geographical reach to Canada, which grew to account for 20 percent of revenue. RESA transformed from the fifth largest player to market leader, growing from 200 to over 800 employees, and from 21 to 45 branches.
The employee ownership program granted equity to all employees with at least one year of service, improving retention by 10 percent. At exit, more than 800 non-executive employees received cash payouts ranging from three months to over five years of annual pay. The emphasis on employee ownership and stakeholder capitalism also reflects broader industry trends towards more inclusive value creation.
Early Pass, Later Conviction
Investcorp initially evaluated RESA in 2016 but declined to invest because it determined the company lacked the people, platforms and processes at the time required to scale. Maintaining RESA in its “shadow portfolio” for nearly five years ultimately proved to be a prudent choice. When the opportunity came up again in 2021, Investcorp moved decisively, armed with conviction from its work in the space and a clear value creation strategy.
For more Deals of the Year coverage, see Mergers & Acquisitions Selects 12 Transactions as 2026 Middle-Market Deals of the Year.
