Focus

RFE Pursues Growth Strategies In U.S. Lower Middle Market Companies.

We are focused on control investments in businesses with revenues <$100mm and EBITDA between $3mm and $15mm.

RFE has stayed true to this segment of the market since inception, and we are now investing out of our ninth fund. Our specialization has helped guide 85+ companies in a wide range of industries through the challenges of growing from $25-$75mm of revenue to $150mm+ while addressing typical organizational issues: lack of senior management infrastructure to scale for growth, reactive sales organizations, and absence of actionable business information processes. We have repeatedly solved these challenges for our portfolio companies while collaborating with the senior team on corporate vision, acquisition strategy, and capital resource optimization.

Target sectors

RFE has extensive experience investing in a variety of service sectors across a multitude of end markets, with an emphasis and successful history in the following segments:

  • Residential and Facility Services
  • Outsourced and Professional Services
  • Sustainability
View our Companies
End markets in these sectors tend to have significant fragmentation; our strategy is focused on organic growth along with an average of 3+ acquisitions per platform.

Investment Profile

The companies in which we invest have some or all of the following characteristics:

  • Strong vision for growth
  • Unique and differentiated approach in the market
  • Leadership (local or regional) in a fragmented market
  • Predictable revenue and demand drivers
  • Asset-light
  • Proven ability to operate in multiple verticals
  • Acquisition/integration experience

Our Approach

RFE’s approach to value creation includes:

  • Focus on building management infrastructure
  • Foster employee centric cultures to recruit and retain the best talent
  • Minimize debt in early in the capital structure so that teams can focus on value creation and investments for growth – not debt limitations
  • Flexibility to invest in infrastructure
  • Sponsored portfolio companies peer-group networking