Three Cities Research has sold 10East to Railcar Management, a portfolio company of The Carlyle Group's Growth Partners Group. 10East provides software as a service (SaaS) solutions to the North American railroad industry for its signal and communications infrastructure. Carlyle acquired Railcar Management, an information services provider to the rail transportation industry, in June of 2007.
Companies involved in the railroad industry one way or another have surprisingly not been a common target of private equity investors. In the past five years only 19 companies have received private equity investment, according to the PitchBook Platform. The median investment amount for the industry is only $50 million, with many deals well under that amount. One firm that has made a few investments in the industry is The Riverside Company, with a couple of add-on acquisitions for its railroad track and supplies manufacturer Nordco.