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Ariel Alternatives, the private equity arm of Ariel Investments, one of the largest Black-owned money managers in the U.S., has expanded its reach in industrial services under Mellody Hobson with the acquisition of Groome Industrial Service Group, a provider of industrial cleaning and maintenance that supports some of the largest power and manufacturing facilities.
The deal, backed by a minority investment from JPMorgan Asset Management, will be housed under Ariel Alternatives’ $1.45 billion Project Black fund. The platform was created to scale minority-owned and minority-led businesses, giving them access to capital and opportunities to compete on a larger stage.
Expansion into energy and industrial services
Groome, which employs more than 900 workers across 20 locations, was acquired from Argosy Private Equity. Its business spans industrial cleaning, emissions control and mechanical work for refineries, utilities and data-heavy operations. Ariel noted that Groome is positioned to benefit as artificial intelligence drives power demand, straining older plants and pushing companies to find specialized maintenance partners.
Founded in 1969, Groome has built a national footprint with proprietary technology such as its “KinetiClean” system. The company has also expanded through acquisitions, including its purchase of W-S Companies earlier this year. Ariel said there is further potential to grow by adding complementary services and expanding Groome’s customer base.
Project Black’s wider ambition
The deal adds to Project Black, launched in 2021 by Hobson and private equity veteran Les Brun. The initiative aims to scale minority-led businesses so they can compete for contracts with Fortune 500 supply chains. In 2023, Ariel raised $1.45 billion to fund the effort, with commitments from corporate partners and institutional investors.
“At Ariel Alternatives, our mission is to back companies and leadership teams with a strong vision for growth,” Brun said. “In Jeff and the Groome team, we have found exactly that.”
Challenges remain. Groome operates in a sector that is labor-heavy and tightly regulated, and it has faced legal disputes related to silo-cleaning operations. Ariel’s plan will require careful integration, safety compliance and customer diversification beyond utilities.
Hobson’s broader role
Hobson, who also serves as co-CEO of Ariel Investments, has become a widely recognized voice in U.S. finance. She sits on the boards of Estée Lauder and DreamWorks Animation, chairs the Chicago nonprofit After School Matters, and has authored a New York Times bestselling children’s book on financial literacy.
By bringing Groome into Project Black, Ariel Alternatives is betting on steady demand for energy and infrastructure services while advancing its push to create more opportunities for minority-led businesses. For Hobson, the deal reflects a mix of finance, corporate partnerships and a broader effort to reshape who owns and leads in capital-intensive industries.
