Pamlico Capital has completed a recapitalisation of EHS Insight, backed by growth investor Level Equity, in an undisclosed mid-market technology deal that underlines private equity’s sustained interest in niche compliance and safety software platforms.
The transaction, recently announced, injects fresh institutional capital into EHS Insight, a software provider focused on environmental, health and safety (EHS) management. While financial terms were not disclosed, the deal fits squarely within the European-style mid-market funding range typically targeted by both Pamlico and Level Equity, and is structured as a growth-oriented recapitalisation rather than a full buyout exit.
Deal structure and investor roles
Pamlico Capital is acting as the lead investor in the recapitalisation, with Level Equity participating alongside as a co-investor. The structure allows existing shareholders to partially de-risk while bringing in new capital for expansion initiatives. Recapitalisations of this kind are now a core tool in the mid-market to extend ownership horizons and fund the next phase of growth without a disruptive change of control.
The involvement of both a traditional private equity firm and a growth equity investor gives EHS Insight a blended capital base: Pamlico typically focuses on control and structured growth situations, while Level Equity is known for backing recurring-revenue software businesses with flexible minority or majority positions. Together, they are positioned to support both operational scaling and product development.
Strategic rationale: scaling specialist EHS software
EHS Insight operates in the technology segment, providing software designed to manage environmental, health and safety processes, reporting and compliance. Demand for such platforms is driven by tightening regulatory requirements, heightened corporate focus on workplace safety, and the growing integration of EHS metrics into broader ESG reporting frameworks.
By recapitalising the business rather than orchestrating a change-of-control sale, the investors signal confidence in the existing platform and management team, while creating capacity to accelerate growth. Typical priorities in similar mid-market EHS software deals include:
- Product expansion – broadening modules across incident management, audits, training, and regulatory reporting.
- Geographic growth – extending from core markets into additional regions where EHS compliance regimes are formalising and digitising.
- Go-to-market scale-up – investing in sales, channel partnerships and customer success to deepen penetration in industrial, energy, manufacturing and services sectors.
Mid-market relevance
Although the country of the target is not disclosed, the deal is emblematic of a broader mid-market pattern: established specialist software vendors in compliance-heavy verticals are attracting repeat rounds of private capital at valuations that reward recurring revenue and regulatory stickiness.
For mid-market investors, EHS platforms such as EHS Insight offer:
- Resilient demand – compliance and safety spend remains non-discretionary even in slower cycles.
- Long-term customer relationships – once embedded, EHS systems can be costly and risky for corporates to replace.
- Clear value creation levers – from pricing optimisation and cross-sell to international expansion.
Outlook
With Pamlico Capital and Level Equity now on the cap table, EHS Insight enters a new growth phase with a more institutional ownership profile and additional capital to pursue expansion. In the absence of disclosed valuation metrics, the deal nonetheless reinforces a clear message for the mid-market: specialised compliance and safety software continues to command strong private equity backing, and recapitalisations remain a preferred route to extend growth trajectories without forcing premature exits.