CHARLOTTE – March 31, 2011 – Carmichael Partners today announced that it has completed a $22 million venture capital investment in Bandwidth.com, Inc. (“Bandwidth”). Headquartered in Research Triangle Park, North Carolina, Bandwidth is the nation’s fastest growing phone network and provider of PhoneBooth™ cloud-based phone services and Broadband.com business Internet services.
This represents the first investment for Carmichael Partners, which was founded in 2010 by veteran private equity investor Brian Bailey and former FCC Chairman Kevin Martin. Carmichael’s largest investment partner in the transaction is Fenton Place Capital, a private equity investment firm founded by Carter Meiselman, the former President of Eastern Federal Theatres. Robinson, Bradshaw & Hinson, P.A. acted as legal advisor to Carmichael in the transaction.
Carmichael’s investment punctuates a series of recent major achievements for Bandwidth. The company acquired dash Carrier Services, a provider of 911 emergency services, in February and announced a landmark commercial deal with the Verizon wireline companies in January. Bandwidth completed a record-setting 2010 as it added thousands of new customers, became the sixth-largest provider of phone number based services in the United States and launched PhoneBooth Mobile™ and Broadband.com.
“We are excited to partner with Bandwidth as the company continues to build upon its extraordinary record of innovation and rapid growth in the communications space,” noted Carmichael co-founder Kevin Martin. Brian Bailey added, “We believe this investment will enable the company to expand its service offerings and capitalize on numerous business opportunities with both existing and new customers.”
Bandwidth.com is among the nation’s largest and fastest growing communication networks, providing services that demand millions of phone numbers annually and billions of minutes of calls for over 6,000 business customers in all fifty states, including industry leaders such as Skype and Pinger. For small and medium sized businesses, Bandwidth also provides integrated office phone systems, smartphones, and business-grade Internet connectivity. Founded in 1999, Bandwidth is a profitable company located in Research Triangle Park, NC. For more information, please visit http://www.bandwidth.com/
About Carmichael Partners
Carmichael Partners is a private investment firm that is focused on growth-oriented equity investments in three sectors – media, communications and information services. Carmichael’s investment strategy is to work actively with portfolio companies in these sectors to build and transform market-leading businesses. Carmichael believes that this operationally-focused approach appeals to certain families, founders and managers who seek an involved and value-added investment partner to help pursue growth and strategic opportunities, capitalize on industry trends and preserve the cultures of their companies. Carmichael was founded by veteran private equity investor Brian Bailey and former FCC Chairman Kevin Martin. For more information, please visit http://www.carmichaelpartners.com/
About Fenton Place Capital
Fenton Place Capital is an internally-funded private equity firm serving the lower-middle and middle markets and focused specifically on media, communications and business services. FPC invests significant amounts of its own capital into each of its transactions and purposefully limits the number of investments that it makes, ensuring greater operational and strategic support for each. Without timetables dictated by external capital, FPC is focused on building long-term value rather than short-term returns. FPC was founded by Carter Meiselman, the former President of Eastern Federal Theatres. For more information, please visit http://www.fentonplacecapital.com/