Graham Partners Secures a New Chapter with Gatekeeper Systems

Graham Partners Completes Single Asset Continuation Fund with Gatekeeper Systems

 Graham Partners (“Graham”), a private investment firm targeting advanced manufacturing and technology-enabled solutions, is pleased to announce the sale of its holdings in Gatekeeper Systems, Inc. (“Gatekeeper”) to a single-asset continuation fund managed by Graham and to Graham’s most recent flagship buyout fund. The continuation fund was anchored by lead investor HarbourVest Partners (“HarbourVest”), with funding also provided by other syndicate investors and existing limited partners of Graham. Graham believes there are additional organic and inorganic value creation opportunities for Gatekeeper and is excited to continue its partnership with the company.

Gatekeeper Systems, headquartered in Foothill Ranch, California, provides proprietary IoT-enabled loss prevention solutions that help retailers combat theft, while enhancing employee and shopper safety. The company’s patented solutions are rapidly gaining share in a market that is only ~6% penetrated globally.¹ Gatekeeper’s IoT solutions are deployed in many of the largest retailer chains, including in 48 of the top 50 cart-based retailers in North America, positioning the company as a platform to integrate technologies across the loss prevention ecosystem.

Graham originally invested in Gatekeeper in October 2019 to support a technology solution in its early adoption addressing the rise of retail theft. The thesis was underpinned by a conversion to Gatekeeper’s Purchek® solution, the company’s flagship theft prevention offering, due to the strong ROI it provides to retailers and the company’s attractive business model resulting in ~55% of revenue generated from recurring revenue streams. During Graham’s initial hold, Gatekeeper accelerated top-line growth globally, enhanced margins through improved operational efficiency, and implemented a multi-national supply chain strategy, which contributed to over 480% organic EBITDA growth since acquisition. Recently, Gatekeeper completed its first strategic acquisition under Graham’s ownership, FaceFirst, Inc., a developer and provider of comprehensive, purpose-built, and scalable AI-enabled loss prevention technology, which enhanced Gatekeeper’s position as an integrated retail loss prevention platform. Building on this momentum, Graham believes the company is still in its early global adoption phase, with a significant whitespace opportunity.

Rob Newbold, Managing Principal at Graham Partners, said, “With Gatekeeper, we saw an opportunity to partner with a business that we believe is supporting loss prevention efforts at retailers globally. We are proud to have supported the growth of such an innovative company and look forward to working alongside Gatekeeper through this next phase.”

Nick Bellisario, Managing Director at HarbourVest Partners, said, “We are excited to partner with Graham Partners and the entire Gatekeeper team to support the company’s continued success. This transaction demonstrates our approach to the GP-led secondary market whereby we seek to partner with experienced general partners to invest in high quality businesses that are poised for continued future growth.”

Evercore (lead advisor), Harris Williams (co-advisor), and Piper Sander (f/k/a Aviditi Advisors; co-advisor) served as advisors to Graham, and Latham & Watkins LLP and Dechert LLP served as legal counsel for Graham.

¹BCG Market Study, March 2024.

Note: Graham Partners has a commercial relationship with HarbourVest Partners, which may incentivize HarbourVest to make such statements. However, no compensation was paid for this endorsement.

 
ABOUT GRAHAM PARTNERS
Graham Partners is a private investment firm focused on investing in technology-driven companies that are spurring innovation in advanced manufacturing, resulting in product substitutions, raw materials conversions, and disruptions to traditional end markets. Graham Partners can offer control or minority capital solutions and typically targets companies with EBITDA up to $50 million. 
Since the firm’s founding in 1988 by Steven Graham, Graham Partners has closed over 160 acquisitions, joint ventures, financings, and divestitures. The committed capital raised since inception through the Graham Partners funds together with Graham-led co-investments totals approximately $6.8 billion as of December 31, 2024, pro forma for subsequent events, which differs from Graham’s Regulatory Assets Under Management of approximately $4.0 billion as of December 31, 2024. Investors include high-net-worth individuals, college and university endowments, foundations, pension plans, insurance companies, funds-of-funds, and other institutional investors. Based in suburban Philadelphia, the firm has access to extensive operating resources and industrial expertise and is a member of The Graham Group, an alliance of independent operating businesses, investment firms and philanthropic entities, which all share in the common legacy of entrepreneur Donald Graham.

ABOUT GATEKEEPER SYSTEMS
Gatekeeper Systems’ patented technologies are a cornerstone of loss prevention solutions and services. The company’s expanded suite of asset protection, loss prevention, and life-safety products and services offer technologies for retailer’s needs. Loss prevention and cart containment solutions utilize patented locking technology seeking to put an end to cart-based shoplifting, shopping cart loss, and uninformed decision making. Gatekeeper Systems’ solutions help to improve safety, minimize merchandise loss, bring critical insights into both cart and theft behavior, and, ultimately, improve store profits. With more than ten million enabled carts protected by their loss prevention systems, Gatekeeper Systems serves retailers worldwide. For more information, please visit gatekeepersystems.com.

ABOUT HARBOURVEST
HarbourVest is an independent, global private markets firm with over 42 years of experience and more than $138 billion of assets under management as of September 30, 2024. Their interwoven platform provides clients access to global primary funds, secondary transactions, direct co-investments, real assets and infrastructure, and private credit. HarbourVest’s strengths extend across strategies, enabled by their team of more than 1,200 employees, including more than 245 investment professionals across Asia, Europe, and the Americas. Across their private markets platform, their team has committed more than $61 billion to newly-formed funds, completed over $59 billion in secondary purchases, and invested over $43 billion in direct operating companies. They partner strategically and plan offerings innovatively to provide their clients with access, insight, and global opportunities.

FOR FURTHER INFORMATION CONTACT:  

Rob Newbold
Managing Principal
rnewbold@grahampartners.net

Mike Stewart
Principal
mstewart@grahampartners.net

Christina Morin
Managing Principal
cmorin@grahampartners.net

Legal Disclaimer: This press release is for informational purposes and is not an offer to sell, or a solicitation of an offer to buy, securities in the United States or elsewhere. Graham Partners is not utilizing this release to provide investment or other advice, and no information disclosed therein is to be relied upon for the purpose of making investment decisions. Past performance does not guarantee future results and any transactions described are included as representative transactions and are not necessarily reflective of overall performance. It should not be assumed that any investment described herein was or will be profitable. There can be no assurance that historical trends will continue. Graham Partners' market characterization is based on subjective determinations that it believes reasonable but others may disagree with such characterization. There is no guarantee that Graham Partners' initiatives will drive value for its investments or accelerate growth or lead Graham Partners' investments to become profitable