- Details
- By Brian Edwards
- Real Estate
The Southern Ute Indian Tribe Growth Fund has acquired The Berg Group through its direct private equity subsidiary, Kava Equity Partners, expanding the Tribe’s portfolio into integrated and industrialized construction services.
The transaction adds the Minnesota-based specialty contractor to Kava’s growing lower middle market portfolio. Berg, founded in 1967, provides interior and exterior building systems nationwide, combining design-assist services, building information modeling, prefabrication and modular construction. The company serves advanced manufacturing, data center and other mission-critical projects. Financial terms were not disclosed.
The acquisition reflects the Growth Fund’s strategy of deploying long-term capital into operating companies aligned with the Tribe’s economic objectives. Kava Equity Partners was established in 2023 to pursue majority and minority investments in lower middle market businesses. In 2024, Kava completed its first acquisition with the purchase of Arrowhead Contracting, an environmental remediation firm.
Kava has said it targets companies with established management teams and earnings before interest, taxes, depreciation and amortization between $5 million and $30 million, while generally pursuing longer hold periods than traditional private equity funds.
“This partnership reflects our commitment to investing in companies that honor the values of the Southern Ute Indian Tribe while delivering strong long-term economic opportunity,” James Dudley, managing director of Kava Equity Partners, said in a statement.
Berg will retain its existing management team and continue operating under its current brand.
The acquisition was backed by $30 million in senior secured credit facilities arranged by KeyBanc Capital Markets. According to a recent transaction announcement, the financing closed Feb. 1 and provided funding for Kava Equity Partners' purchase of Berg as well as related transaction costs.
KeyBanc said it was selected as sole lender based on its transaction experience and long-standing relationship with the Southern Ute Indian Tribe and the Tribe's Growth Fund. The financing marks another step in Kava's effort to build a portfolio of lower middle market companies through direct private equity investments.
Holland & Hart LLP and Maynes, Bradford, Shipps & Sheftel LLP advised Kava on the transaction, while Hennepin Partners and Best & Flanagan LLP represented Berg.
Editor's Note: This story has been updated to include details about the acquisition financing.
