Invitation

Hello SMB Deal Hunters!

I wanted to invite you to participate in a business acquisition opportunity I’m investing in.

This is a fully passive investment led by an experienced sponsor. Through Hunter Equity Partners, our investment arm, I’ve secured an exclusive allocation in the deal and am pooling capital from the SMB Deal Hunter community. I’m leading the syndicate and managing the investment vehicle, so you can gain exposure to this opportunity without having to operate the business yourself.

The acquisition target is a market leader in lighting controls and energy management systems (“EMS”) that power the next generation of intelligent, energy-efficient buildings. According to the sponsors:

• The company designs, manufactures, and deploys proprietary hardware and software platforms that control lighting, HVAC, and metering systems across large industrial and commercial sites. Its solutions are trusted by enterprise clients like Costco and integrated into Lutron as their exclusive outdoor lighting technology provider. These systems deliver up to 30% (or more) energy cost savings through zoning, scheduling, and smart automation.

• A new strategic partnership with Lutron embeds the company into one of the world’s most prestigious lighting ecosystems, creating a global distribution channel and validating its technology. The company now has over two million devices deployed and recently posted the strongest revenue months in its history, driven by this rollout.

• The sponsor brings a proven track record with 7 successful platform exits and an average gross IRR of 41.7% and 2.9x MOIC, including their most recent exit in 2024 that achieved a 10x return and over 100% annualized IRR, reflecting a consistent ability to scale and grow profitable companies.

Quick summary:

• 2024 EBITDA: $7.8MM

• 2024 Revenue: $21.8MM

• Purchase Price: $51MM

• Equity Target Raise: $4.9MM

• Target Investor IRR: 24.9%

• Target Investor MOIC: 3.1x

• Target Investment Period: 5 years

• Target Close: Dec 1, 2025

• Minimum Investment: $50K

Note: You have to be an accredited investor to participate

Here’s why I’m investing in this deal:

1. Two fast-growing energy markets. Both the EMS and Networked Lighting Control sectors are projected to grow at ~15–18% CAGR over the next five years, driven by rising power demand (including from AI and data centers), tightening building-efficiency standards, and expanded policy incentives like the §179D deduction for energy-efficient commercial properties. Together, these forces are creating one of the strongest multi-year tailwinds in the smart-building space as governments, corporations, and property owners race to modernize infrastructure and reduce energy costs.

2. Blue-chip validation and hard-to-replicate tech. Deployed at large, complex sites (e.g., Costco warehouses and Oracle Park, home of the San Francisco Giants), the company’s proprietary wireless mesh network is known for reliability in difficult RF environments.

3. Strong financials with incremental upside from Lutron. Importantly, Lutron-related revenue is minimal in historicals, so future sales from this channel are incremental.

4. Attractive entry multiple. We’re acquiring at significantly below industry comparables (5.8x lower). Purchase price to budgeted 2025 adjusted EBITDA multiple is only 7.5x compared to industry average comps of 13.3x. This was a proprietary, off-market transaction sourced directly through long-standing industry relationships, allowing us to secure favorable terms well below market valuations.

5. Meaningful seller alignment. Sellers are rolling $10MM, so they have real skin in the game alongside investors.

6. Additional tax advantages through QSBS. The acquisition is structured through a C-Corp that qualifies for Qualified Small Business Stock (QSBS) treatment under Section 1202, allowing investors to potentially exclude up to 100% of capital-gains taxes on exit. These savings are not included in the modeled IRR projections, representing additional upside to investor returns. If you’re interested in learning more, request an invite to review the data room. You must be an accredited investor to participate:

If you’re interested in learning more, request an invite to look at the data room. You must be an accredited investor to participate:

Thanks,

Helen Guo

P.S. I’ll also be inviting those who have requested more information above to a private webinar where I’ll be interviewing one of my partners Kyle (Head of Investments at Hunter Equity Partners, the investment arm of SMB Deal Hunter) with an opportunity for Q&A on Wednesday, Nov. 12.

Legal Disclaimer: The information herein concerns a private placement of equity securities offered under Regulation D as promulgated by the Securities and Exchange Commission. This email is not an offer for the sale of securities. The Offering referenced herein is qualified entirely by a certain private placement memorandum circulated by the issuer of this Offering, and securities may only be offered and sold pursuant to such memorandum and applicable securities laws.