Point Broadband (“Point”) was formed in 2017 with a mission to improve lives by delivering 100% fiber networks and best-in-class customer service to underserved areas of rural America. Through partnerships with communities and local utility companies, Point has helped fuel economic development and allowed small-town businesses and families to enjoy a level of broadband connectivity normally only found in big cities.
Stephens Capital Partners (SCP) led a minority investment round into Point in 2019, which provided capital to purchase the remaining ownership interest in an operating subsidiary from its previous owners. The capital SCP provided also helped enable Point to refinance its senior credit facility under more attractive terms. In 2020, SCP further supported Point with an additional equity investment, which helped Point finance three acquisitions, further expanding Point’s geographic reach into three new states.
The COVID-19 pandemic created a significant and rapid increase in telecommuting, distance learning and telehealth services, all of which placed an increased importance on reliable in-home broadband connectivity. This created a dramatic increase in demand for Point’s services over the course of 2020, as many neighboring communities across Point’s footprint urged Point to expand its fiber broadband networks to their communities as quickly as possible.
The heightened awareness of the need for quality broadband led to an enormous amount of attractive capital deployment opportunities, which was much larger than what the shareholder base at Point could reasonably support.
As such, in 2021, Stephens assisted Point Broadband in finding a new majority capital partner, GTCR, which purchased majority control in Point and also provided incremental capital to support Point’s attractive growth opportunities. SCP rolled a significant portion of its invested capital into the new capital structure, and remains a supportive board member and capital partner today.