NewPath lands $30 million

Two investment funds are pumping $30 million into NewPath Networks, a 5-year-old Seattle company that brings wireless coverage to corporate campuses, sports arenas, dense neighborhoods and other areas that are hard to reach for wireless carriers.

NewPath works with wireless carriers such as Verizon, AT&T and T-Mobile to extend wireless coverage in those areas where it is not practical to build a cell tower. It uses underground fiber as well as small antennas mounted on light poles in order to bolster call and network coverage.

"In hard-to-zone communities or on large corporate, retail or university campuses, NewPath enables multiple wireless operators to improve coverage and capacity while eliminating community aesthetic concerns," the company notes on its Web site.

As part of the deal, New York private equity firm Charterhouse Group is investing $20 million and Denver-based Meritage Funds is investing $10 million. They also have committed to fund future rounds in order to support NewPath's growth.

The two firms previously co-invested in Cencom Cable, the St. Louis cable company that eventually became Charter Communications. Interestingly, Charterhouse Group sold its stake in Charter Communications to Paul Allen in 1998, realizing an internal rate of return of nearly 50 percent. (Allen didn't fare as well with his investment.)

NewPath is led by by Chairman Bill Marraccini and CEO Mike Kavanaugh. Marraccini previously worked with Charterhouse as an executive at AAT Communications, while Kavanaugh previously served as an executive at OpenCell Corp. and Metawave Communications.

"Charterhouse and Meritage's telecom knowledge and capital resources enable NewPath to continue on its rapid organic growth trajectory," said Kavanaugh in a press release. "Increasing wireless network capacity demands necessitated by the growth in data and multi-media applications make this a very exciting time to focus on expanding our footprint and pursuing strategic acquisitions."

Competitors include Houston-based Crown Castle and San Jose, Calif.-based NextG Networks. The new cash is part of a $47 million financing deal that also included participation from Sweetwater Capital, an investment firm led by Marraccini.

READ MORE and COMMENT, more