Houlihan Lokey Advises TRC

Houlihan Lokey is pleased to announce that TRC, a portfolio company of New Mountain Capital and a leading, global consulting, engineering and construction firm that provides environmentally focused and digitally powered solutions, announced today a significant growth investment from Warburg Pincus. The deal also marks a successful exit for New Mountain Capital. The terms of the transaction have not been disclosed. The transaction closed on December 9, 2021.

The strategic investment will support the continuation of the company’s growth initiatives, including scaling the company’s compliance-focused engineering and consulting services as part of broader decarbonization efforts. TRC and Warburg Pincus share a similar culture and entrepreneurial spirit, and both are well positioned to drive growth for their organizations together. As part of this transaction, New Mountain Capital has successfully exited its investment in TRC after supporting a period of significant business building and growth investments to transform the company and position TRC for continued growth and success in the future.

Founded in 1969, TRC has just under 6,000 highly skilled employees as well as a strong reputation for quality and technical excellence in the industry. The company provides technology-enabled engineering, consulting, and diversified environmental services to customers in the power and utility, transportation, government, commercial, and industrial end markets. While serving a diversified client base, the company has focused its efforts on building a differentiated position in the power and utility market. TRC has built industry-leading capabilities that are critical to its utility customers, from the design and commissioning of traditional electric grid assets to advising on emerging trends in energy efficiency, renewable transition, and grid digitization. In addition, TRC provides environmental engineering and consulting services that the company has leveraged to both cross-sell to its core utility customers and enter new end markets.

New Mountain Capital is a New York-based investment firm that emphasizes business building and growth, rather than debt, as it pursues long-term capital appreciation. The firm currently manages private equity, credit, and net lease real estate funds with over $35 billion in assets under management. New Mountain Capital has been a growth investor in a number of proactively selected “defensive growth” and socially positive industries, including infrastructure services and technology. In infrastructure, New Mountain Capital has been a leader in energy transition and decarbonization, including Pearce Services and Qualus Power Services, as well as managing and maintaining clean water infrastructure, including Inframark and Aegion. New Mountain Capital has a strong ESG commitment to sustainability and social responsibility and has published its annual Social Dashboard on job creation and investment metrics since 2009.

Headquartered in New York, Warburg Pincus LLC is a leading global growth investor. The firm has more than $67 billion in private equity assets under management. The firm’s active portfolio of more than 215 companies is highly diversified by stage, sector, and geography. Warburg Pincus is an experienced partner to management teams seeking to build durable companies with sustainable value. Founded in 1966, Warburg Pincus has raised 20 private equity funds, which have invested more than $97 billion in over 960 companies in more than 40 countries. Warburg Pincus is an active investor in business services companies, with notable investments in A-LIGN, Allied Universal, ARAMARK, Certified Group, GA Foods, Hygiena, Sweeping Corporation of America, Service Logic, and Sotera. The firm has a strong track record investing in companies that are committed to the growth of ESG practices across all sectors—at a global scale. Notable investments with an ESG focus include Assent Compliance, FlexXray, Fortius, Monolith, PTSG, Scale Microgrid Solutions, and Sunnywell New Material.

Houlihan Lokey served as the lead financial advisor for TRC and New Mountain Capital. This deal exemplifies the continued success of Houlihan Lokey’s dedicated focus on the utility services segment of the engineering, industrial, and infrastructure services sector.