Subsea Technology & Rentals (STR)
Mission-critical subsea sensor technology for the offshore energy transition
Invested: Jan. 2022 | Exited: Dec. 2024 | Headquarters: Aberdeen, Scotland
About STR
STR is a global subsea sensor equipment and solutions provider to the offshore energy, infrastructure and marine science markets. For over 20 years, the company has delivered mission-critical solutions supporting offshore survey, ROV, IRM, positioning, environmental and subsea construction activities.
Operating an equipment-as-a-service (EaaS) model, STR provides best-of-breed rental solutions, combining third-party technology with a growing portfolio of proprietary in-house innovations, to support the inspection, construction and maintenance of offshore energy structures, with an increasing focus on offshore wind. The business is differentiated by strong technical capability and the largest technical geophysical survey fleet in the industry, with the data it captures critical to the safety, efficiency and cost of customer projects in challenging subsea environments.
Measurable Outcomes
Growth in U.S. revenue over our hold period
Strategic investment into STR's global rental fleet
Opened in Houston, Singapore & Perth
Why Baird Capital Invested in STR
STR is optimally positioned to support and benefit from the energy transition. With roughly 90% asset fungibility between end markets, its fleet can serve both offshore wind and oil & gas, future-proofing the asset base as the energy mix shifts. We were drawn to a number of compelling characteristics of the business, including:
- Its status as a clear market leader in subsea sensor technology, operating the most modern pool of technology in the industry.
- Strong structural tailwinds, including rising energy demand, accelerating offshore wind investment, an increasing propensity to rent, and record customer backlogs underpinning near- and medium-term growth.
- Its focus on serving Tier 1 global contractors expected to be the winners of the energy transition.
Partnering with STR's Founders
STR chose to partner with Baird Capital ahead of our January 2022 investment. The decision was driven by our complementary vision for growth; ability to provide capital for organic expansion and potential M&A; our experience and track record supporting founder transitions and the professionalization of high-growth SMEs; access to Baird professionals located across STR's key geographic markets; industrial know-how; and overall cultural fit.
I chose to work with Baird Capital given our strong alignment around collaboration, culture and values. Since the investment, they have been an exceptionally supportive and pragmatic partner to enable the international growth of STR. They have a keen understanding of what drives value in private equity backed businesses and are very willing to work alongside the STR team.
Stephen Steele, Chief Executive Officer, STR
The Situation:
How Baird Capital Supported STR
Under our ownership, STR grew from an ad-hoc, top-up equipment provider into a strategic, embedded framework partner for its key customers. Our value-creation approach focused on professionalizing the business, deepening customer intimacy, driving growth in the renewables sector and at geographic scale, and aligning the business with the right buyer pool for a competitive exit. Together, we:
- Expanded STR's international hub network, adding presence in the U.S. (Houston), Singapore and Australia (Perth) to meet customer-led demand across global energy hotspots.
- Invested approximately £30 million into STR's global rental fleet to capture the fast-growing offshore wind market.
- Adopted global framework agreements with Tier 1 customers, supporting operational efficiency and increasing revenue share from existing customers.
- Implemented an enhanced data management and reporting system to enable improved operational efficiency and data-driven decision-making.
- Professionalized key functional areas including sales & marketing, HR and finance.
During our hold period, strategic customer wins with blue-chip contractors and the shift to embedded framework partnerships enabled STR to grow EBITDA significantly. In December 2024, Baird Capital exited its investment in STR to Star Capital, achieving a full realization that marked another chapter in our team’s longtime focus on sustainability and the global energy transition.