Fix-It 24/7

New Harbor identified the home services industry as an attractive area to pursue our technology-enabled services investment thesis. We believe the home services sector is highly fragmented with an estimated 80% of the U.S. market comprised of operators with fewer than 10 employees. The sector is generally characterized by steady and stable growth, supported by non-discretionary, break-fix consumer demand drivers. In addition, we believe technology innovation within the home is accelerating the need for home services, with complex smart homes and energy efficient systems replacing legacy installs. As a result, the home services industry presents a significant opportunity to gain scale advantages through operational sophistication as well as technology and systems deployment to provide a better customer and employee experience. We believe Fix-It 24/7, a provider of home maintenance, repair, and replacement services, was positioned to deploy these tools.

Fix-It represents a differentiated opportunity for New Harbor to partner with a seasoned owner-operator, George Donaldson, who has enjoyed a successful career scaling multiple home services businesses. George purchased Fix-It as a small business in 2017 and over the subsequent years rapidly scaled the business. At the time of New Harbor’s investment, Fix-It 24/7, through a 40-person field staff, was serving the Denver market with significant near-term growth plans both within and beyond its current market.

The Company’s Investment Management plan focuses on deploying technological and operational sophistication with excellence while rapidly scaling the Company. Key initiatives include system implementation to provide more insightful and real-time KPIs to management and field staff, formalization of field staff recruiting and training – including an in-house certification program, targeted marketing strategies, and corporate organization build out to support an expanded geographical footprint. Beyond organic initiatives, the plan is to accelerate growth through the acquisitions of high-quality and reputable brands; notably, the Company closed on its first acquisition within two months of New Harbor’s initial investment.

*Certain statements about New Harbor Capital made by portfolio company executives herein are intended to illustrate New Harbor Capital’s business relationship with such persons, including with respect to New Harbor Capital’s facilities as a business partner, rather than New Harbor Capital’s capabilities or expertise with respect to investment advisory services.  Portfolio company executives were not compensated in connection with their participation, although they generally receive compensation and investment opportunities in connection with their portfolio company roles, and in certain cases are also owners of portfolio company securities and/or investors in New Harbor Capital-sponsored vehicles. Such compensation and investments subject participants to potential conflicts of interest in making the statements herein.