Twin Point Capital invests in Stealth Monitoring

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By Ted Liu

Stealth Monitoring has announced that Twin Point Capital LLC has made a significant equity investment in the company. Auxo Management LP, a privately held investment firm led by Stealth CEO Robert Cherun and President Erik Mikkelsen, will retain a substantial ownership in the company and existing management remains in place.

Terms of the transaction were not disclosed.

Auxo Management LP, a search fund, in partnership wit management, acquired UCIT Online Security in 2011. In November 2016, Auxo/UCIT acquired Dallas, Texasbased Stealth Monitoring Inc.

With over 500 employees, 15 offices, and 3 redundant live video monitoring control centers, Stealth Monitoring of Dallas and Toronto, is a leading provider of live video monitoring solutions. It specializes in proactive and intelligent video monitoring technology that can significantly improve threat detection and police response.

photo credit: Stealth Monitoring

News Release

Investment Will Enable Company to Expand Business Through Organic Growth and Strategic Acquisitions

DALLAS, TX and TORONTO, ON, Sept. 23, 2019 – Stealth Monitoring (“Stealth”) announced today that Twin Point Capital LLC (“Twin Point”) has made a significant equity investment in the company. Auxo Management LP (“Auxo”), a privately held investment firm (led by Stealth CEO Robert Cherun and President Erik Mikkelsen), will retain a substantial ownership in the company, and existing management remains in place. Terms of the transaction were not disclosed.

Stealth is one of the largest and fastest growing providers of live video monitoring solutions in North America. The company is a leading and trusted provider of a high-quality and highly reliable suite of services, including video monitoring, access control, video analytics, and detection services that deter crime and provide real-time and valuable business data and analytics. Stealth works closely with its customers in designing, installing, and implementing highly customized solutions across multiple industries including: construction, multi-family residential, shopping center and retail, automotive, office and commercial, industrial and manufacturing, energy, and distribution and logistics businesses. Founded in 2003, Stealth has grown from 50 to over 550 employees. The company provides its services through fifteen offices and three redundant live video monitoring command centers. Stealth’s team proactively monitors over 25,000 cameras daily, resulting in more than 15,000 deterred crimes, 500+ arrests, and 35,000+ analyzed customer videos per year.

Erik Mikkelsen, President of Stealth, said, “We are very excited to partner with Twin Point to help us take our business to the next level. Their experience and track record for fueling aggressive growth in technology and service businesses will provide Stealth with substantial financial resources and capabilities that will help us achieve our growth initiatives.”

Robert Cherun, Chief Executive Officer of Stealth, added, “Stealth has been successful by focusing on providing our customers with high-quality video solutions and world-class customer service. With this new partnership, Stealth will further accelerate our substantial investments in advanced technologies and outstanding people to increase the value we can bring to our customers.”

Jonathan Friesel, Managing Partner at Twin Point, stated, “We are very excited to work closely with the Stealth management team. We are confident that Stealth’s robust technology platform and passion for serving the customer will drive continued growth and success. Stealth has a unique opportunity to help thousands of businesses, who are still using expensive and less effective physical guards or unmonitored cameras, to better protect their assets and enhance their business outcomes.”

Raymond James & Associates, Inc. served as financial advisor to Stealth on the transaction. Stikeman Elliott LLP, Seyfarth Shaw LLP and Mitchell Silberberg & Knupp LLP provided legal counsel to Stealth. Cooley LLP, Fasken Martineau DuMoulin LLP, and Buchanan Ingersoll & Rooney PC provided legal counsel to Twin Point.

As part of the transaction, Stealth raised new debt capital which was provided by Pacific Western Bank and CIBC Bank USA.

Twin Point Capital is a principal investment firm founded by Lawrence H. Guffey and Jonathan E. Friesel in 2015 with offices in Palo Alto, CA and New York, NY. Twin Point seeks to partner with outstanding management to build market leading companies and drive strong long-term growth.

Contact Information:
Stealth Monitoring
Erik Mikkelsen
p: 1-905-405-9898

Twin Point Capital
Nicholas Pike
p: 1-347-594-5332