In June 1998, Arcapita and its co-investors acquired WaterMark, one of the top three manufacturers and sellers of kayaks, canoes and paddle sports accessories. The original investment was made to purchase the well-known Dagger and Perception brands within the kayak and canoe industry. Shortly thereafter, the company acquired the Harmony brand, and, in turn, created the world’s most complete line of paddle sports equipment and accessories. Arcapita’s original investment was premised on the thesis that the kayak and canoe industry would benefit from consolidation of multiple brands under one sales, marketing and distribution umbrella. This ultimately made WaterMark an attractive acquisition for Confluence. In August 2001, the water sports division of WaterMark, Inc. was acquired by Confluence Watersports Company, a privately-held entity in the same line of business as WaterMark.