Key Takeaways
- • Fusion Capital Partners acquired AQUALIS, a stormwater and wastewater management and engineering services provider, from DFW Capital Partners in a transaction that represents Fusion's first platform acquisition of 2026 and fourth overall platform investment since January 2025.
- • AQUALIS, founded in 2001 and headquartered in Morrisville, North Carolina, serves more than 1,750 customers across the U.S., including municipalities, commercial property owners, and industrial operators, with a comprehensive service suite spanning water quality testing, permitting, inspections, preventative maintenance, infrastructure rehabilitation, and emergency response.
- • DFW Capital Partners held AQUALIS for approximately eight years following its June 2018 acquisition (when the company was named Restoration + Recovery), exiting through Fusion, which targets North American companies with $10 million to $30 million EBITDA in engineered products and essential services sectors.
- • Fusion's water management focus reflects structural tailwinds including aging stormwater and wastewater infrastructure, increasing regulatory complexity, and weather volatility driving demand for strategic compliance and asset management partners in the middle market.
- • The transaction included Harris Williams as financial advisor to AQUALIS, and Baird and Stifel as financial advisors to Fusion, positioning the deal within established sponsor-to-sponsor continuation frameworks.
Summary
Fusion Capital Partners has completed the acquisition of AQUALIS, a provider of stormwater and wastewater management, engineering, and compliance services, from DFW Capital Partners. The transaction marks Fusion's entry into the water management infrastructure space and represents the Los Angeles-based firm's first platform acquisition in 2026, following three prior platform investments since its January 2024 founding: Excel Engineering (December 2025), Relevant Solutions (May 2025), and Tavoron (January 2025).
AQUALIS, headquartered near Raleigh in Morrisville, North Carolina, and led by CEO Richard Matero, operates across the full lifecycle of water infrastructure asset management. The company's service offerings encompass runoff control, water quality testing, permitting, inspections, preventative maintenance, repairs, infrastructure rehabilitation, emergency response, and compliance consulting. With over 1,750 customers nationwide including municipalities, commercial property owners, and industrial operators, AQUALIS addresses regulatory and operational requirements for stormwater and wastewater infrastructure. Founded in 2001, the company was previously known as Restoration + Recovery when DFW Capital Partners acquired it in June 2018 through its fifth fund, holding the asset for approximately eight years before the current sale.
Fusion Capital Partners specializes in control investments in North American companies with EBITDA between $10 million and $30 million, with particular focus on engineered products and essential services businesses serving industrial and commercial markets. Jeff Chaney, principal and co-founder of Fusion, cited sustained tailwinds in water management driven by aging infrastructure, heightened regulation, and increasing weather volatility as key factors positioning AQUALIS for accelerated growth. The firm's stated strategy centers on leveraging operational expertise to build AQUALIS into a leading middle-market platform.
DFW Capital Partners, a New York City-based sponsor focused on outsourced business and industrial support services and healthcare investments, completed the exit as part of its portfolio optimization activities. DeVer Warner, a DFW partner, characterized the partnership as transformational, crediting Matero and his leadership team with establishing AQUALIS as a national provider of comprehensive water compliance services. Harris Williams advised AQUALIS on the transaction, while Baird and Stifel served as financial advisors to Fusion, reflecting standard sponsor-to-sponsor transaction mechanics.
AQUALIS, headquartered near Raleigh in Morrisville, North Carolina, and led by CEO Richard Matero, operates across the full lifecycle of water infrastructure asset management. The company's service offerings encompass runoff control, water quality testing, permitting, inspections, preventative maintenance, repairs, infrastructure rehabilitation, emergency response, and compliance consulting. With over 1,750 customers nationwide including municipalities, commercial property owners, and industrial operators, AQUALIS addresses regulatory and operational requirements for stormwater and wastewater infrastructure. Founded in 2001, the company was previously known as Restoration + Recovery when DFW Capital Partners acquired it in June 2018 through its fifth fund, holding the asset for approximately eight years before the current sale.
Fusion Capital Partners specializes in control investments in North American companies with EBITDA between $10 million and $30 million, with particular focus on engineered products and essential services businesses serving industrial and commercial markets. Jeff Chaney, principal and co-founder of Fusion, cited sustained tailwinds in water management driven by aging infrastructure, heightened regulation, and increasing weather volatility as key factors positioning AQUALIS for accelerated growth. The firm's stated strategy centers on leveraging operational expertise to build AQUALIS into a leading middle-market platform.
DFW Capital Partners, a New York City-based sponsor focused on outsourced business and industrial support services and healthcare investments, completed the exit as part of its portfolio optimization activities. DeVer Warner, a DFW partner, characterized the partnership as transformational, crediting Matero and his leadership team with establishing AQUALIS as a national provider of comprehensive water compliance services. Harris Williams advised AQUALIS on the transaction, while Baird and Stifel served as financial advisors to Fusion, reflecting standard sponsor-to-sponsor transaction mechanics.
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