Investment in Gravitate's AI-Enabled Energy
Logistics Software
CHARLOTTE, N.C. and TULSA, Okla., July 16,
2024 /PRNewswire/ -- Gravitate, a leading provider of
AI-enabled fuel management and energy logistics software announced
a significant growth investment from Falfurrias Management Partners
("Falfurrias"), a Charlotte-based
investment firm focused on growth-oriented, middle-market
businesses. The investment is a testament to Gravitate's innovative
approach to optimizing fuel supply for retailers, refiners,
wholesalers, and carriers. With Falfurrias' support, Gravitate is
poised to continue its growth trajectory and mission of
transforming the energy logistics landscape through AI-enabled
cutting-edge technology.
Gravitate's fuel management software offerings address the fuel
value chain across the secondary fuel logistics market serving
refiners, wholesalers, carriers, and retailers. The company,
founded in 2011, has established itself as a leader in this market,
historically characterized by outdated and manual solutions.
Customers leverage Gravitate's suite of solutions to manage and
optimize fuel supply and logistics, optimize rack and customer
pricing, and provide fuel customers with online channels for
dynamic fuel purchasing. Notably, Gravitate's Supply & Dispatch
product is the only AI-integrated optimization and dispatch
solution for supply and logistics decisions in the fuel industry.
This product, along with others in their portfolio, can deliver a
40% or greater reduction in overhead in dispatching departments and
a 5-10x ROI through supply and asset optimization. As part of the
transaction, Gravitate has been spun-out of its parent company,
capSpire, which also received a growth investment from
Falfurrias.
Founder and CEO, Mike Scharf, and
COO, Bernard Wehbe, will continue to
lead the company. "Gravitate has established itself as a pivotal
player in the fuels industry, providing critical infrastructure for
clients looking to transform their business operations across
refined fuel, wholesale, retail, and transportation segments," said
Scharf. "This partnership with Falfurrias marks the beginning of
our next chapter. We're excited about this next stage of growth and
the opportunities it presents to further solidify our market
leadership, provide more value to our existing customers, invest in
our core offerings, scale operations, and invest further in product
development, ensuring that Gravitate remains at the forefront of
the industry." The full Gravitate team will remain unchanged and
Scharf and Wehbe will remain key owners of the business.
"We are enthusiastic about the innovation and return on
investment Gravitate is bringing to the market," said Michael Clifton and Amy
Brandt, Partners at Falfurrias. "Their expertise in the
energy sector and commitment to their customers' success combined
with our resources and operational expertise, will undoubtedly lead
to continued remarkable success in the market." Kevin Hesselbirg, an Industry First executive
with Falfurrias, will serve as Gravitate's Chairman, bringing 25
years of experience leading and growing software and services
businesses.
Equity for this investment comes from Falfurrias Growth Partners
I, a growth fund strategy launched by Falfurrias in 2023 and builds
on the firm's experience in the information services and
tech-enabled services sectors.
Hall Estill, Philip Lee LLP, and Lopp Law Firm provided legal
counsel to Gravitate. McGuireWoods LLP served as legal advisors to
Falfurrias.
About Gravitate
Gravitate is a leading provider of
AI-enabled energy logistics software, transforming fuel supply
optimization in the energy sector. Committed to innovation and
exceptional customer service, Gravitate delivers solutions that
enhance efficiency and value for clients, including convenience
store operators, fuel wholesalers, refiners, and purchasers. For
more information, visit gravitate.energy.
About Falfurrias Growth Partners
Falfurrias Growth
Partners is an operationally focused middle-market investment fund
focused on investing in high-growth companies in the software and
business services sectors. The team is comprised of investors and
proven operators, as well as in-house resources across strategy
& market insights, finance / integration, human capital, and
technology. The new fund strategy was launched in 2023 and is led
by Cam Dyer, Partner and Chairman of
Falfurrias Growth Partners I's investment committee. The fund is
managed by Falfurrias Management Partners, a Charlotte-based investment firm founded in
2006 by Hugh McColl Jr., former
chairman and CEO of Bank of America; Marc
Oken, former CFO of Bank of America; and Managing Partner Ed
McMahan. The firm has raised $2.2
billion across six funds and invests in growing,
middle-market businesses in sectors where the firm's operational
resources, relationships, and sector expertise can be employed to
complement portfolio company executive teams in support of growth
objectives. For more information, visit www.falfurrias.com.
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SOURCE Falfurrias Management Partners