Market Overview

Hyphen Solutions Announces Investment From GreyLion Capital & Stone Point Capital

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Investment will accelerate strategic growth initiatives

Hyphen Solutions ("Hyphen" or "the Company"), the leading provider of cloud-based residential construction management software, has announced a significant equity investment from GreyLion Capital and Stone Point Capital LLC to support Hyphen's rapid growth and new product introductions. The terms of the investment were not disclosed.

"We are thrilled to welcome Stone Point as our partner," stated Hyphen CEO Felix Vasquez. "Hyphen now enjoys the substantial backing of two proven investors, both of which focus on supporting our accelerated growth. Hyphen looks forward to delivering new and innovative products as we continue to grow within our markets, while pursuing strategic acquisitions." Hyphen is the market leader within residential construction software. GreyLion Capital, whose funds first invested with the Company in 2016, is committed to Hyphen's long-term growth and success and will remain a significant company owner.

"Felix and his team have built an exceptional platform that provides an all-encompassing software and payment management solution for the residential real estate construction industry," stated Chuck Davis, CEO of Stone Point. "We are excited to join GreyLion, who has been integral in helping accelerate Hyphen's growth and development over the last four years, in partnering with the Hyphen team to bolster and expand its client-focused offerings and, in turn, further grow its market share."

The latest infusion of capital will support Hyphen in scaling its new integrated payments solution, Hyphen Wallet, accelerate sales across new products such as SupplyPro GM, launch new workflow solutions, and support expansion into new markets and geographies via organic and inorganic growth initiatives.

Chip Baird, Co-Founder and Managing Partner of GreyLion Capital, said "Following substantially expanded R&D investments over the past four years, Hyphen is now well positioned to continue growing its product offering to deliver accelerated growth and increased market share. We are pleased for Stone Point to join GreyLion and management in the next phase of growth and look forward to scaling these integrated payment solutions as Hyphen expands into new markets and grows its loyal customer base."

William Blair served as the exclusive financial advisor to Hyphen, and Weil, Gotshal & Manges and Baker Botts L.L.P. are its legal advisors. Kramer Levin Naftalis & Frankel LLP and Kirkland & Ellis LLP are providing legal counsel to Stone Point.

As part of the investment, Chip Baird and Henry Heinerscheid, Partners of GreyLion Capital, and Agha Khan and Rory Shaw, Senior Principal and Vice President, respectively, of Stone Point Capital, will join Mr. Vasquez, Hyphen's CEO on the Company's Board of Directors. David B. Deniger, the previous Chairman of the Board and the founding general partner of Hyphen Solutions sold a majority of his interest in the Company and will continue to serve as a member of the Board of Directors.

About Hyphen Solutions, LLC

Hyphen Solutions, LLC provides over 70,000 builders, installers, and manufacturers with industry-leading supply chain scheduling, procurement, and collaboration solutions for North America's top home builders and their suppliers. Hyphen's SaaS applications deliver greater operational control, better communications and increased productivity for home builders and their building partners who use the applications. The Hyphen Network services over 500 builder divisions which built approximately 300,000 new homes in 2019. This existing network executed over 20 million home builder purchase orders last year totaling in excess of $36 billion.

Hyphen's product base includes: BuildPro for scheduling, Hyphen CRM for relationship management, SupplyPro for trade management, BidConnect for bidding, SupplyPro Connect for trade automation, Inspections for punch-list management, Storm Water Inspections Management for SWPPP inspections, Progress Pay for land management, Lien Release for lien waiver management, Hyphen Wallet for streamlining payments, SupplyPro GM for all of a supplier's back office and field service needs, and Warranty Management for homeowner satisfaction.

For more information about Hyphen, please visit www.hyphensolutions.com or contact Payton Bowen at pbowen@ihyphen.com.

About GreyLion Capital

GreyLion Capital (formerly known as PWP Growth Equity) focuses on investing in high-growth businesses in the lower middle market. We seek to partner with existing owners and management teams across the industrial, consumer, software and services sectors to deliver capital in tailored and flexible minority and control structures. GreyLion invests $25-$125 million of capital per investment, primarily within the United States. GreyLion currently manages private equity funds with aggregate commitments of $1.35 billion.

For more information on GreyLion Capital, please visit https://www.greylioncapital.com/ or contact Jody Shechtman at jody@greylioncapital.com.

About Stone Point Capital

Stone Point Capital is a financial services-focused private equity firm based in Greenwich, CT. The firm has raised and managed eight private equity funds – the Trident Funds – with aggregate committed capital of more than $26 billion. Stone Point targets investments in companies in the global financial services industry and related sectors.

For more information, please visit www.stonepoint.com or please contact Mary Catherine Manin at mmanin@stonepoint.com.

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