Target Information

SEP has made a strategic growth equity investment in Restrata, a leading provider of operational resilience software and services. Restrata partners with major global enterprises, particularly in the energy and industrial sectors, to enhance their operational security and resilience. The company’s flagship product, resilienceOS, has become essential for organizations striving to protect their personnel, assets, and operations across the globe. The investment from SEP will facilitate accelerated product development, particularly in artificial intelligence, and will support the expansion of Restrata’s services in North America, Europe, and the Middle East.

Industry Overview

The operational resilience sector has seen a remarkable upswing as enterprises grapple with unprecedented levels of global uncertainty. Increasingly, businesses are focused on ensuring the safety of their employees and maintaining operational integrity amidst potential disruptions. This growing emphasis has driven a demand for sophisticated technological solutions that enable organizations to efficiently mitigate and respond to operational challenges, all while maintaining robust oversight of daily activities.

In the UK, companies are particularly concerned about a wide array of threats, including localized industrial incidents, escalating political instability, extreme weather events, and various forms of organized crime. As enterprises seek to enhance their operational resilience, spending on customized solutions like resilienceOS is surging, contributing to a multi-billion-dollar industry projected to grow by more than 10% annually.

Restrata has positioned itself as a key player in this evolving landscape, having addressed the security and safety needs of organizations in challenging environments since its founding in 2006. The co-founders, Chris St George and Botan Osman, leveraged their extensive backgrounds in technology, security, military, and government sectors to create an integrated software solution that empowers companies to effectively protect their operations.

According to Botan Osman, the creation of resilienceOS was driven by the necessity to address the limitations of fragmented security systems and the need for a consolidated platform that enhances safety and operational management. With clients now leveraging resilienceOS to manage global security operations, the software's capabilities in overseeing incidents, ensuring traveler safety, and safeguarding assets have established it as an indispensable tool for modern enterprises.

Rationale Behind the Deal

SEP’s investment in Restrata is strategically aligned with the growing demand for operational resilience solutions. As organizations globally are increasingly focused on safeguarding their operations amid myriad risks, Restrata’s resilienceOS stands out as a robust tool tailored to meet these evolving needs. The anticipated acceleration in product development, particularly in artificial intelligence, will further enhance the platform's capabilities, maintaining its competitive edge in the market.

The partnership with SEP aims to leverage the significant market tailwinds, ensuring that Restrata continues to refine and adapt its offerings to meet the sophisticated demands of global enterprises seeking to secure their operations and workforce.

Investor Information

SEP, a prominent growth equity firm, has successfully led the investment in Restrata through the expertise of its team, particularly Tim Ankers and Jack Senior. They have expressed enthusiasm for collaborating with Restrata to harness the company’s momentum and facilitate its next phase of growth. SEP recognizes the strength of Restrata’s customer base and its innovative product offering, which is increasingly relevant in today’s market.

With a keen focus on sustainable investment and growth potential, SEP’s partnership with Restrata signifies confidence in the latter’s strategic direction and market position. The firm aims to support Restrata in its mission to deliver cutting-edge solutions that enhance operational resilience and safety on a global scale.

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From an investment perspective, SEP's decision to invest in Restrata appears to be a sound strategy, given the significant shifts in the demand for operational resilience solutions. As enterprises prioritize safety and resilience amidst escalating threats, Restrata’s comprehensive platform, resilienceOS, boasts a unique position within the growing market.

The strong revenue growth of resilienceOS, with a reported increase of over 50% in 2024, indicates robust market acceptance and a growing customer base that relies on its functionalities for critical operations. This positive trend underscores the validity of SEP's investment decision, as the market for these solutions is expected to continue expanding.

Moreover, the company's proactive approach to integrating AI capabilities into its platform aligns well with technological advancements and customer expectations in the industry. As businesses look for sophisticated and adaptive solutions, Restrata is well equipped to fulfill these needs, positioning itself favorably for future growth.

In conclusion, the partnership between SEP and Restrata is likely to be beneficial for both parties, providing Restrata with the resources needed to innovate and scale its operations while offering SEP a stake in a promising company operating within a rapidly evolving industry.

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