ECI Partners exits CSL with 3.5x return & new fund backing
ECI Partners has exited its investment in CSL, a critical IoT connectivity company, transferring the business into its first continuation fund and achieving a 3.5x return on its original investment.
Since ECI Partners acquired a stake in CSL in 2020, the firm reports that CSL has achieved approximately 20% organic annual growth. The expansion has been attributed to entering new geographies and broadening the range of sectors CSL serves, beyond its established presence in building management, security, and telehealth.
CSL has pursued opportunities in several additional verticals, now supplying services to sectors including transport and logistics, commercial property, retail, hospitality, and utilities. The company has also secured notable projects, such as being selected by Vodafone as the UK National Lottery Partner, providing critical connectivity services.
Product expansion
CSL launched the rSIM product in 2024, described as a resilient and intelligent SIM card that actively monitors connectivity and can switch its network profile to maximise system uptime. This technology has been developed with a focus on guaranteeing operational continuity for life-critical, business-critical, and mission-critical applications in diverse industries.
As CSL continues forward with ECI's support, the business expects to maintain its active expansion strategy. This includes the potential for mergers and acquisitions, entry into further sectors or territories, and development or acquisition of new technological solutions.
Ed Heale, CEO of CSL, commented: "We're incredibly proud of what we've achieved with ECI's support over the last five years. Our innovative approach means we continue to evolve our customer offering, and the launch of new products such as rSIM has been an exciting step forward for the business. CSL today is well positioned to be the market leader in critical connectivity across our regions and geographies and I'm looking forward to partnering with ECI again as we continue to scale our business."
First continuation vehicle
This exit represents ECI's first use of a continuation fund, an investment structure that allows existing investors to reinvest in a business for a second holding period. The fund is led by established ECI investors Carlyle AlpInvest, HarbourVest Partners, and Pantheon, signalling their continued confidence in CSL's prospects and growth potential.
Chris Watt, Managing Partner at ECI, noted the company's experience in the cloud and digital sectors, explaining that CSL is ECI's fourth investment in the IoT sector. He stated,
"We're proud to have helped facilitate CSL's impressive performance over the last five years and are looking forward to continuing to support the company's next growth phase. We're very familiar with the cloud and digital sector, with CSL being our fourth investment in the IoT space and a standout business in its market. We are also delighted that ECI's offering to investors is continuing to evolve through our first Continuation Vehicle."
Advisory roles
Evercore acted as lead financial advisor for the transaction, supported by IA Global Capital, with legal advice provided by Paul, Weiss, Rifkind, Wharton & Garrison LLP. OC&C conducted commercial due diligence, and PwC conducted financial due diligence. Squire Patton Boggs LLP provided further legal due diligence.
