Rotunda Capital Invests $12.3 Million in Microf, LLC
Growth Capital Investment for Only HVAC Industry Rent-to-Own Specialty Finance Firm
WASHINGTON & CHICAGO--(BUSINESS WIRE)--Rotunda Capital Partners, LLC (Rotunda Capital), a lower middle-market private equity firm, has invested $12.3 million in Microf, LLC, an innovative consumer finance firm that provides rent-to-own (RTO) solutions for the residential HVAC industry. The investment provides growth capital for Microf and establishes Rotunda Capital as the company’s largest investor. Rotunda Capital has sourced industry veteran Craig Rosato to join the company as the chief financial officer and will add two members to the board.
“Microf’s unique solution addresses a lack of financing options for credit constrained consumers that are challenged by a need to replace their HVAC system. The company has received strong support from a leading HVAC manufacturer, many top distributors, hundreds of dealers and thousands of consumers,” said John Fruehwirth, managing partner at Rotunda Capital. “Rotunda Capital’s investment and desire to actively support existing management coupled with Craig’s expertise, will provide additional support to attract new distributors and dealers as Microf rapidly rolls out the company’s innovative RTO product nationwide.”
“We are excited to have Rotunda on board and leverage their expertise in specialty finance as we introduce our flexible rent-to-own financing option to homeowners across the country.”
Microf’s first-to-market RTO product provides unmatched flexibility to consumers through quick response times, flexible product offerings, specialized HVAC expertise and its proprietary relationships with Carrier-branded distributors and dealers across the United States. These strategic partnerships grant Microf access to a preferred network of trusted HVAC sales and installation professionals.
“Microf evaluated several potential investors to propel the company forward, and management unanimously selected Rotunda as the ideal partner because of their deep knowledge in the space and willingness to actively work with our management team to drive the Company’s growth,” said Mitch Masters, CEO of Microf. “We are excited to have Rotunda on board and leverage their expertise in specialty finance as we introduce our flexible rent-to-own financing option to homeowners across the country.”
“We see a significant replacement trend for aging HVAC equipment in the coming years and believe Microf is ideally positioned to capture market share by providing a financing option that is better for many consumers,” said Bob Wickham, partner at Rotunda Capital. “Microf represents the fourth specialty finance platform for the Rotunda Capital team, and we are eager to partner with Microf to leverage its unique niche in an untapped market.”
About Microf Financial Services.
Microf was established by Mitch Masters and Jay Kimbro in 2010 to accommodate the growing demand for more flexible options surrounding the replacement of residential heating and cooling systems. The company’s goal is to restore the consumers’ heating and cooling needs with an affordable monthly payment through a strategic network of actively enrolled dealers. The Microf team is eager to add value to its dealers and consumers by offering flexible and affordable options to restore comfort with competitive solutions across the United States.
About Rotunda Capital
Rotunda Capital Partners is a private equity firm that invests equity capital in established and profitable lower middle market companies. As an independent deal sponsor, Rotunda Capital raises and invests the capital of its principals, institutions, family offices and high net worth individuals on a deal-by-deal basis. The firm uses a rigorous approach to identify market-leading companies with identifiable growth opportunities and capable management teams in targeted sectors, including distribution, logistics, specialty finance, and business services. Rotunda Capital partners with industry leading operating executives to grow each portfolio company. Since 2009, Rotunda Capital has completed eight platform investments and realized two exits. The partners of Rotunda Capital actively provide guidance and draw on deep industry and financial relationships to contribute to the successful execution of Rotunda’s companies’ strategic plans.
LANE (for Rotunda Capital)