Everside Announces Additional Investment in Fiber Optic Company
February 2021
New York City, NY – Everside Capital Partners (“Everside”) is pleased to announce a new investment in US Internet Corp. (“USI” or the “Company”). Everside, together with Lake Country Capital (“Lake Country”), a MN based investment firm and a group of Everside’s LPs, all well-regarded Institutional Investors (together with Everside and Lake Country, the Investor Group), provided an additional investment to support the future growth and expansion of USI. The management team, who has been crucial to the success of the Company, will continue to run the business and maintain its majority ownership.
USI, formed in 1995 by Travis Carter and Kurt Lange, is headquartered in Minnetonka, MN and is a fiber optic-based internet service provider, data hosting and applications service company. Since 2010, the Company has invested heavily in fiber infrastructure in Minneapolis and although competing against much larger competitors, USI has been able to achieve a disproportionately high penetration rate of single-family homes and wired multi-dwelling units. The Company differentiates itself from other internet service providers through its faster and more affordable underground fiber optic cable offering to customers. By utilizing an individual fiber strand to each building it services, USI is effectively able to remove any bandwidth limitations.
Looking ahead, the founder-led management team of USI plans to continue the rapid growth of the Company by pursuing a large-scale deployment of fiber-to-the-home internet access in Minnesota and adjacent areas. The Investor Group is thrilled to have the opportunity to support the management as they continue to invest into and expand Minneapolis’ fiber infrastructure, whose characteristics provide strong fundamentals for growth.
“We have known USI’s management team as a lender for many years and are excited to deepen our relationship through this investment. We believe the demand for reliable high-speed fiber connections has significantly increased during the COVID-19 crisis and that the need for reliable internet will continue to go up, driven by streaming, gaming and telecommuting. USI has been the leader in providing reliable high-speed internet by building out the most reliable fiber optic cable network in Minneapolis. We believe the Twin Cities is one of the most sophisticated urban areas in the U.S., which makes USI’s fiber network a crucial part of the region’s infrastructure. Everside, together with our trusted partners, is excited to partner with USI to help them continue on this successful journey.” – Moritz Poehl, Founder and Managing Partner of Everside
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Everside is an SEC-registered investment advisor, as well as a SBIC (Small Business Investment Company) license holder based in New York, NY. With over $1.9 billion in assets under management across its funds, Everside partners with leading SBIC managers in the lower middle market through its primary and secondary investing strategies, and also makes direct credit and equity investments in small businesses through its direct investing strategies. As a flexible capital provider, Everside offers debt and structured equity solutions for recapitalizations, acquisitions, liquidity events, and management buyouts.
For more information, please visit us at everside.com.
*This communication is for informational purposes only and is not intended as an offer or solicitation with respect to the purchase or sale of any security or of any fund or account Everside Capital Partners, LLC (the “Adviser”) manages or offers. Although the information provided herein has been obtained from sources which the Adviser believes to be reliable, we do not guarantee its accuracy, and such information may be incomplete or condensed. The information is subject to change without notice and the Adviser has no obligation to update you.
This document should not be the basis of an investment decision. An investment decision should be based on your customary and thorough due diligence procedures, which should include, but not be limited to, a thorough review of all relevant term sheets and other offering documents as well as consultation with legal, tax and regulatory experts. Statements made in this release include forward-looking statements which can be identified by the use of forward-looking terminology such as “may,” “will,” “should,” “expect,” or believe,” or other variations thereon. Certain information contained herein constitutes opinions, intentions, or beliefs of the Adviser, which may be preceded by the terms “belief,” “opinion,” or other similar terms. Such statements of “opinion” merely represent the Adviser’s state of mind and should not be construed as a material statement of fact. Any use of adjectives or superlatives included herein are a good faith opinion of the Adviser including but not limited to language such as “exhaustive,” “superior,” or “leading,” and should not be construed as material statements of fact. Further, other third parties may not agree with the opinions of the Adviser.