Third Space Partners Acquires Quest Events, Targets Further Growth

By Olivia Hart

Quest Events says it supports more than 17,000 events annually from 17 locations and serves more than 5,000 customer accounts. Third Space Partners has acquired the national provider of drape, modular scenic systems, staging and event furnishing solutions, extending the private equity firm’s investments across live entertainment and the experience economy.

What did Third Space Partners acquire?

Founded nearly 30 years ago, Quest Events designs, builds and installs drape and modular scenic environments for ballrooms, convention halls and other venues. The systems transform those spaces for corporate meetings, entertainment productions and special events. Its product portfolio includes the proprietary AV Drop modular system.

Quest’s service range covers concept development, in-house design, custom fabrication, installation, on-site crews and load-out. Together, those functions carry a project from early concept through installation and load-out.

Matt Settle, founder and managing partner of Third Space Partners, said: “We invest in the essential businesses behind live experiences, the ones you never notice until they’re missing, and Quest is a perfect example.” Quest supplies the physical environments and crews behind those live experiences.

Takeaway: Third Space has acquired a scaled event-production and installation platform with a national footprint.

How does Quest serve customers across multiple markets?

Quest’s service chain covers six functions, connecting early design with on-site execution. The company handles each stage:

• Concept development.
• In-house design.
• Custom fabrication.
• Installation.
• On-site crews.
• Load-out.

Quest’s customer roster spans several organizer and venue categories:

• Audiovisual production companies and event producers.
• Experiential agencies and meeting planners.
• Venues and other organizations supporting live experiences.

In select markets, Quest also provides services through specialty divisions including Drape Kings and A & D Scenery. Its 17-location network supports customers running events across multiple markets while maintaining installation and service capabilities in different regions.

The existing management team, led by founder and CEO Lee Dunlap, will continue operating Quest Events. Dunlap said: “We’re excited to work with a partner that shares our vision and brings industry knowledge, relationships and resources to help us grow.”

Takeaway: Management continuity and a national field network give Third Space an established base for expansion.

Where does Third Space expect growth to come from?

Third Space Partners said it sees opportunities to expand Quest into additional segments by drawing on the firm’s relationships across music, sports, entertainment and related industries. It also plans four forms of investment:

• Invest in Quest’s sales and service capabilities.
• Broaden its scenic product offerings.
• Open additional locations.
• Pursue complementary acquisitions.

The announcement sets no deadline, cost or numerical target for those commitments, including the number of new locations. That leaves the scale and pace of expansion undefined.

Quest operates in a fragmented industry, with many competitors remaining local or regional. Third Space Partners says Quest’s national network can support customers running events across multiple markets while maintaining installation and service capabilities in different regions.

Takeaway: Quest offers Third Space a national platform in a market dominated by smaller regional operators.

Who advised and financed the acquisition?

McGuireWoods served as legal counsel to Third Space Partners, according to the announcement. Funds affiliated with BDT & MSD Partners provided debt financing for the acquisition. The announcement did not state the financing amount.

Third Space focuses on founder- and family-owned companies that provide essential services and infrastructure to live events, sports, entertainment and recreation. Quest’s founder-led management team will remain in place, keeping the operating leadership unchanged after the transaction.

Takeaway: Third Space combined equity backing with acquisition debt while leaving Quest’s existing management structure intact.

What does the announcement leave unanswered?

The acquisition announcement, as reported by Pulse 2.0, did not disclose the purchase price, valuation, revenue, debt amount or closing date. It also omitted numerical targets for new locations, sales and service investment, broader scenic products and follow-on acquisitions. Those omissions prevent outside readers from testing the deal’s return assumptions against Quest’s financial performance.

Third Space has identified where it plans to invest, while Quest brings more than 17,000 annual events and more than 5,000 customer accounts. The next test is whether that base produces measurable location growth, a wider product range and stronger sales and service coverage.

Takeaway: The next test is whether Third Space can turn Quest’s 17-location base into measurable expansion; the announcement offers no financial benchmarks.