An affiliate of Dallas-based private equity manager Paceline Equity Partners has made a $40 million preferred equity investment in Columbus, Ohio-based Kassel Mechanical Holdings, a privately held provider of facility services focused on the installation and maintenance of mechanical, electrical, plumbing, fire suppression systems, and other critical mechanical building systems to a diverse set of end-markets.

Paceline said its equity investment is being made in conjunction with a broader recapitalization to support Kassel’s add-on acquisition of Arrow Electric Inc., a privately held electrical contractor providing construction, design and maintenance services.

“We’re thrilled to work collaboratively with Kassel founder Tom Werner and the rest of the experienced management team to support the growth of Kassel, a fast-growing MEPF company with an established track record and exciting growth opportunities,” Paceline CEO Sam Loughlin said in a statement. “Paceline has significant experience investing in building products and construction sectors, and we look forward to bringing our financial and operational expertise to help Kassel scale and accelerate its growth.” 

“This transaction reflects Paceline’s ability to source differentiated opportunities and provide flexible capital solutions. We’re pleased to deliver a unique capital solution for Kassel to execute management’s growth strategy, which includes exciting organic and inorganic initiatives,” added Paceline Chief Investment Officer Leigh Sansone.

Paceline is focused on value-oriented, opportunistic, and special situations investments across corporate credit, private equity, and real assets, the firm said.

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