Project Description

Damac Products

Prairie Capital Fund V

Location La Mirada, CA
Transaction Type Growth Buyout with Management
Investment Date April 2013
Exit Date December 2017
Buyer Maysteel Industries
Business

Manufacturer of custom, highly-engineered infrastructure solutions for the data center market.

Industry Industrial

Investment Rationale

  • Attractive industry dynamics including growth in cloud computing and data usage, which are driving strong underlying demand for data center infrastructure
  • Opportunity to add organizational depth as the Company was largely managed as a lifestyle business and the ownership group had not focused on adding additional talent to capitalize upon market demand
  • The Company was a solution provider, with custom-engineered products that reduced operating costs and optimized space for data centers
  • Damac had an impressive customer base consisting of many of the largest and fastest growing internet and technology companies in the US

Value Add

  • Human Capital
  • Sales & Marketing
  • New Products

Over the years, I have stood as CEO for a number of companies operating under equity firm majority ownership.   From my perspective, Prairie Capital distinguished themselves by making principle based values and transparency key in the relationship with company management.  This is sometimes easier said than done.  In my opinion, Prairie stayed the course and did not deviate from their principle based aspirations.

Stephen Morrey, Former CEO