Prospect Capital and an affiliate have provided a first lien senior secured term loan and a preferred equity investment in Security Fire Systems aggregating approximately $26 million, in collaboration with Blackford Capital. Founded in 1993, Security Fire Systems is an industry leader in fire security and protection, offering automatic fire sprinkler design services, installation, system testing, maintenance, remodel and retrofit services, fire alarms, and emergency response.
The company is certified to provide services in Texas, California, Arkansas, Colorado, and Oklahoma, serving end markets including hospitality, healthcare, education, retail, aviation, government, residential, and religious properties. Financial terms beyond the aggregate investment amount were not disclosed.
Blackford Capital, a Grand Rapids, Michigan-based private equity firm founded in 2010, focuses on acquiring, managing, and building founder and family-owned lower middle-market companies in manufacturing, industrial, and distribution industries. The firm has been recognized on Inc.’s list of Founder-Friendly Investors and received ACG Detroit’s M&A Dealmaker of the Year Award in 2023 as well as the Small Markets Deal of the Year award from Buyouts Magazine and the Global M&A Network Atlas Awards. Blackford’s mission with Security Fire Systems is to build a high-performing market leader in the fire suppression space through organic growth and acquisitions of additional businesses in the sector.
Prospect Capital’s Angel Solis, Managing Director, described the investment as providing growth capital to enable Security Fire Systems to pursue compelling organic and acquisitive growth opportunities, expressing enthusiasm for supporting Blackford Capital’s platform-building strategy in the fire suppression sector. Blackford Capital founder Martin Stein characterized Prospect as a responsive, diligent, and creative transaction partner, and noted that having Prospect as an investor strengthens Security Fire Systems’ position as a compelling acquirer of growing and profitable businesses in the space.
The investment reflects sustained interest among business development companies and private equity firms in essential services businesses with stable demand profiles and room to grow through consolidation of fragmented regional operators. The fire protection services market is characterized by recurring revenue from inspection and maintenance contracts and a regulatory environment that mandates regular system testing and certification, creating durable demand across economic cycles.
KEY QUOTES:
“Prospect is pleased to provide growth capital to enable SFS to pursue compelling organic and acquisitive growth opportunities. We are excited to support Blackford Capital on their mission to make SFS a high-performing market leader in the fire suppression space.”
Angel Solis, Managing Director, Prospect Capital
“We were pleased to work with Prospect, which was responsive, diligent, and creative on this transaction. Having Prospect as an investor strengthens SFS’s position as a compelling acquirer of more growing and profitable businesses in the fire suppression space.”
Martin Stein, Founder and Managing Director, Blackford Capital
