CHICAGO, Ill.—January 13, 2020: Prospect Partners, LLC, a leading private equity firm investing in smaller lower-middle-market companies, today announced that it has sold its interest in Waste Harmonics Holdings, LLC (“Waste Harmonics”), of Victor, N.Y., in partnership with management and co-investor Expedition Capital Partners, LLC, to Arcapita, a global investment firm. Waste Harmonics, one of North America’s top providers of managed waste services, had been a portfolio company of Prospect Partners’ third fund, Prospect Partners III, L.P., since 2015.

Waste Harmonics delivers critical waste collection services across all U.S. states, as well as Canada, Puerto Rico and Guam, through an outsourced network of more than 5,000 vendors. The company’s customers include major chains of banks, travel centers, movie theaters, supply chain management businesses, and convenience and grocery stores.

“Waste Harmonics’ founder Mike Hess has been an exceptional CEO and visionary,” said Prospect Partners’ principal Brett Holcomb. “We have been thrilled to partner with him and his outstanding management team, which successfully redefined the managed waste services category and remain committed to delivering efficient, cost-effective solutions that benefit customers.”

Waste Harmonics provides a comprehensive suite of asset-light, technology-enabled managed waste solutions, and serves predominantly blue-chip companies with locations typically spread across a wide geographic territory. The company’s turnkey capabilities — which include consolidated waste collection and coordination, recycling, sustainability optimization, remote real-time equipment monitoring, equipment rental, compliance reporting, and waste stream auditing — are designed to simplify and optimize complex waste management processes while reducing their cost.

“Waste Harmonics has been an exciting growth story for Prospect Partners,” added Erik Maurer, a principal of Prospect Partners. “Over the past four-and-a-half years, through technological innovation, organic growth, superior service delivery, and three strategic add-on acquisitions, Waste Harmonics has become the industry’s only single-source provider of the full spectrum of waste management services. We have been honored to support its development from a pre-middle-market company into a dominant market leader with expansive programs and geographic reach.”

“Prospect Partners was a terrific partner,” said Waste Harmonics’ Hess. “They really understand how to successfully finance and capitalize a business, and they understand the steps a maturing company needs to take as it grows. That invaluable wisdom allowed my team to focus on running and growing Waste Harmonics — growth that leapfrogged even our own grand expectations we set at the beginning of our partnership.”

TM Capital served as Waste Harmonics’ exclusive financial advisor in this transaction.

To discuss related opportunities, please contact Brett Holcomb or Erik Maurer.