Alliance Group has taken a 15% equity position in Louisville-based Discernity, a company that provides wireless high speed internet to apartments, condominiums, office buildings and hotels.  Chris Chase, Chief Executive Officer of Discernity chose Alliance Group for many reasons.  “It was an easy choice for me to go with Alliance,” Chase said.  “We could either go with several smaller investors or one big investor, which happened to be Alliance Group.  I feel that we made the right choice.  Our board is a lot easier to manage this way, and much more effective.”

Chase is also pleased with Alliance Group’s team and how the transaction was managed from start to finish.  “Les O’Nan and Mike Pitino have allowed us achieve our goals by aligning the operating agreement so that we’re all marching in the same direction.  That isn’t easy to do,” Chase said.  “I’ve heard horror stories about negotiating term sheets and operating agreements with investors, and I had an amazingly smooth and collegial experience with Alliance.”

Chase is looking forward to using this investment to expand into new geographies.  “We are now able to grow our sales force and the operations behind it more quickly,” Chase said.  “We want to enter more markets more aggressively, and because of this financial support from Alliance, we are now able to do that.”

Discernity uses a unique technical architecture that allows them to deliver the wireless signal further and more cost effectively than their competitors.  Additionally, and perhaps most importantly, Discernity sells their service instead of a bunch of hardware.  At a reasonable monthly service fee, customers receive equipment, service, support, maintenance and technology upgrades.  Alliance Group currently holds options to increase their equity position up to 40%.  It is Alliance Group’s full intention to take advantage of those options.

Chase has been extremely satisfied with his experience thus far with Alliance.  “I would refer others to Alliance in a nanosecond,” Chase said.  “Mike and Les worked diligently to keep their minds open and harmonize our goals throughout the entire transaction period.  There was a lot of mutual trust built quickly, and I know this deal could not have been as successful without them behind it.”