LOS ANGELES, Oct. 24, 2023 – Kingswood Capital Management, LP (together with its affiliates, “Kingswood”) announced today that it has acquired Covenant Testing Technologies (“Covenant” or the “Company”), a well-flow management and equipment rental company. Kingswood partnered with industry veterans James Stewart and Doug Scott on the transaction. Kingswood Operating Partner James Stewart will serve as Chief Executive Officer and Chairman of the Board of Directors, and Doug Scott will serve on the Board of Directors of Covenant.
Headquartered in Houston, Texas, Covenant is a leading provider of flowback, production and sand management, and pressure control equipment rentals and associated technical services.
“Covenant has built a strong reputation for technical employees, top-tier service, high-quality equipment, and leading technology,” said James Stewart, “I am excited to partner with both Kingswood and Doug Scott. Given Covenant’s current asset base and operating footprint, we are confident in our ability to expand their customer base and service offering.”
“We are thrilled to partner with James Stewart again on this exciting opportunity,” said Alex Wolf, Managing Partner of Kingswood. “We have a longstanding relationship with James and believe his extensive relationships and deep industry experience, including his leadership at large service companies, such as Nextier, will drive significant profitable growth at Covenant. Doug Scott’s operational expertise will optimize efficiencies and quality across Covenant’s operations.”
Goodwin Procter LLP and Grant Thornton advised Kingswood on the investment.
About Covenant Testing Technologies
Headquartered in Houston, Texas, Covenant is a leading provider of flowback, production and sand management, and pressure control equipment rentals and associated services. Covenant operates in the Permian Basin, DJ Basin, Eagle Ford Shale, and Haynesville Shale, across Texas, New Mexico, Colorado, and Louisiana, making it one of the largest independent specialist service providers in the country. For more information, please refer to the Covenant website at www.ctest.com.
About Kingswood Capital Management, LP
Kingswood Capital Management, LP is a private investment firm primarily focused on investing in businesses in transition. In addition to access to capital, Kingswood brings relevant industry relationships and a broad network of internal and external operating resources that can strengthen the businesses it partners with and enhance value. Kingswood has extensive experience with complex transactions where it provides tailored solutions that balance the objectives of all constituents. For more information, please refer to the Kingswood website at www.kingswood-capital.com.