Pittsburg, Kans.-based Watco Companies LLC (Watco) on June 17 reported receiving a “minor equity investment” of more than $600 million from Duration Capital Partners (Duration), a private investment firm that in 2024 completed its spin-out of Oaktree Capital Management L.P.’s Transportation Infrastructure business.
According to Watco, it has partnered with Duration on multiple transactions since 2018, “building a long-term relationship based on aligned values and a shared commitment to investing in essential transportation infrastructure.”
Proceeds from the new investment will be used to support Watco’s “long-term strategic objectives,” including its assumption of full ownership of Industrial Rail Services, according to Watco, an owner and operator of short lines, terminals, ports and mechanical shops. Industrial Rail Services operates the rail assets at six Dow Chemical facilities in the U.S. and Canada. The result will be Watco having 100% ownership of these assets, Watco said.
“This investment from Duration is not just capital—it’s a long-term vote of confidence in our people, our strategy, and our future,” Watco CEO Dan Smith said. “We’re grateful for their trust and energized by the opportunity to continue to grow with our customers.”
“The team at Duration shares our commitment to long-term thinking and operational excellence,” added Rick Baden, Executive Vice President and CFO of Watco. “Together, we’ve navigated several important initiatives over the years, and this expanded partnership positions us for continued success.”
“This investment is a testament to the strength of our partnership with Watco,” said Josh Connor, Co-CEO of Duration. “Watco exemplifies the type of company we want to support for many years to come—focused on safety, customer service, and operational excellence. It is a privilege to continue growing together.”
“We believe in building durable, values-driven businesses alongside exceptional management teams,” noted Emmett McCann, Co-CEO of Duration. “Our relationship has grown into a deep collaboration, and we have helped many customers expand their businesses. Watco is a world-class operator, and we are proud to be their long-term partner.”
