Robert Covington, Founder and Managing Partner, Braymont Capital [Photo: Braemont]
A new investment firm has been formed with offices in Dallas and New York, and relationship building is a key driver of the firm’s growth investment strategy. Robert Covington, A former partner at RedBird Capital Partners, he today announced the formation of Braemont Capital.
The relationship-based company will launch with a team of “eight experienced professionals” and focus on defensive growth niches in both enterprise and consumer end markets, typically investing between $25 million and $200 million in equity capital for controlling or minority positions.
The new company says its growth equity investments will be made in partnership with founders, families and entrepreneurs.
Covington said in a statement that the team’s “collective experience and relationships will help us identify, invest in and grow great businesses, particularly in niche sectors where we have unique insights and the ability to be a partner that adds value to management teams.”
Previously with RedBird Capital and The Stephens Group
Prior to founding Braymont, Covington was a partner at Redbird Capital Partners, which Dallas Innovates profiled in July, and previously served as managing director at the Stevens Group, a private equity firm that invests capital on behalf of the Stevens family, one of America’s longest-standing private equity investors.
Previously, Covington was a partner at SSM Partners, a PE firm focused on expansion-stage technology, business services and consumer services companies. Prior to SSM, he was founder and CEO of Firstdoor, now part of Infor, where he led a 70-person company with one of the earliest “software-as-a-service” business models.
Covington said he has RedBird Capital’s blessing to start the company, as well as the “full support” of the firm’s founders.
“We are pleased to have Braemont engage Robert to help him pursue his passion for investing in these target end markets,” Jerry Cardinale, founder and managing partner at RedBird Capital Partners, said in a statement. “He is fully committed to building a differentiated investment business and we look forward to working with him for the long term.”
Braemont’s goal: “Invest in construction”
Braemont plans to invest in “great companies at inflection points for growth,” and the company says its capital base gives it the flexibility to structure and hold business-building investments that will create “lasting value.”
The company said it has already signed initial commitments for its first investment vehicle, “resulting in significant capital commitments from institutional investors representing several leading endowments, family offices and individuals that are highly aligned with the company’s strategy.”
Corporate Investment
Braemont will focus on both enterprise B2B investments and consumer B2C growth products and services. On the enterprise side, it will invest in “horizontally and vertically focused products and services that address critical business needs.” B2B targets include vertical SaaS companies, technology-enabled services, insurance sales and services, facilities services and built environment, and communications infrastructure.
Consumer Investments
Within B2C companies, Braemont will focus on growth products and services based on key technology, demographic and other macro trends, including experiential hospitality, residential services, consumer and labor markets, consumer-driven healthcare technologies and services, and food/beverage and consumables.
Grow your investment over time
In July, we wrote about how RedBird Capital often takes a “long-term view” in its investments. Covington appears to be planning to do the same with Braymont. The firm’s website says that a “typical” planned equity investment is between $25 million and $200 million, with the ability to “scale over time,” adding that “our capital base allows for flexible holding periods, enabling us to prioritize and plan for long-term value creation.”
Braemont Team
In addition to Covington, who serves as founder and general partner, the Braemont team includes partners Jeff VollingPreviously, he worked at Bessemer Investors, AE Investors, Madison Dearborn and Credit Suisse. Herb MayPreviously, he worked at DH Capital, Signal Hill Capital, Wachovia and Deutsche Bank, where he was head of entrepreneurial and family office partnerships. Beau Allena Principal at Braemont, was previously with JAM Capital Partners, RSE Ventures and Rizvi Traverse Management. Max Greena senior associate previously with UpEquity, RedBird Capital and Cain Brothers & Co. Steve SimsC.F.A., He is COO and Chief Compliance Officer at Braymont, and previously worked at New Republic Partners, JP Morgan, Stevens Group and Harris Williams & Co., where he also served as Chief of Staff. Jennifer PeppardPreviously, he worked at Speedwell Capital, St. Mark’s School in Texas and The Winston School.
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