Southern Ute Growth Fund acquires specialty contractor through private equity arm

The Southern Ute Indian Tribe Growth Fund has acquired Minnesota-based specialty contractor The Berg Group through its direct private equity subsidiary Kava Equity Partners, expanding the Tribe's portfolio into integrated and industrialized construction services whilst targeting lower middle market businesses aligned with long-term economic objectives.

Tribal Business News reported that the transaction adds Berg, founded in 1967, to Kava's growing portfolio. The company provides interior and exterior building systems nationwide, combining design-assist services, building information modeling, prefabrication and modular construction for advanced manufacturing, data centre and mission-critical projects. Financial terms were not disclosed.

James Dudley, managing director of Kava Equity Partners, said the partnership reflects commitment to investing in companies that honour the values of the Southern Ute Indian Tribe whilst delivering strong long-term economic opportunity. Berg will retain its existing management team and continue operating under its current brand.

The acquisition reflects the Growth Fund's strategy of deploying long-term capital into operating companies aligned with the Tribe's economic objectives. Kava Equity Partners was established in 2023 to pursue majority and minority investments in lower middle market businesses, targeting companies with established management teams and earnings before interest, taxes, depreciation and amortization between $5m (€4.6m) and $30m (€27.8m).

In 2024, Kava completed its first acquisition with the purchase of Arrowhead Contracting, an environmental remediation firm. The private equity subsidiary generally pursues longer hold periods than traditional private equity funds, reflecting the Tribe's patient capital approach to portfolio development.

KeyBank Native American Financial Services acted as sole lender on senior secured credit facilities supporting the transaction. Holland & Hart LLP and Maynes, Bradford, Shipps & Sheftel, LLP advised Kava, whilst Hennepin Partners and Best & Flanagan LLP represented Berg.

Access complete transaction details and portfolio strategy for the tribal investment fund.