Strategic Growth Capital Investment for the Only HVAC Industry Rent-to-Own Specialty Finance Firm
Microf, LLC, a leading provider of financing solutions to the HVAC industry, has entered into an agreement with Rotunda Capital Partners, LLC (Rotunda Capital), a lower-middle-market private equity firm, and with BrandBank, a full service bank with strong roots in the Atlanta area, for a combined $28 million debt and equity raise that will provide Microf with the funding needed to continue its’ aggressive growth and expansion in the HVAC market.
With this capital raise, Microf will maintain its leadership position and is well positioned for significant growth with its current network of manufacturer, distributor and dealer partners. This agreement establishes Rotunda Capital as the largest investor in Microf and positions industry veteran Craig Rosato as the CFO for Microf. Much of Rotunda’s investment will be used to fuel growth and improve operational technology to further enhance quality and timely approval decisions. BrandBank’s credit facility will enable Microf to continue helping HVAC contractors “Restore the Heating/Cooling Needs of the Consumer with an Affordable Monthly Payment.”
“Microf evaluated several potential investors to propel the company forward, and management unanimously selected Rotunda Capital 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 and Co-Founder 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 consumers across the country.”
“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 see a significant replacement trend for aging residential 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 investment for the Rotunda Capital team and we are eager to partner with Microf to leverage its unique niche in an untapped market.”
Microf was established by Mitch Masters and Jay Kimbro in 2010 to accommodate the growing demand for more flexible finance options surrounding the replacement of residential heating/cooling systems. Microf’s goal is to “Restore the Heating/Cooling Needs of the Consumer with an Affordable Monthly Payment” through a strategic network of actively enrolled dealers. The Microf team is eager to add value to its dealers, distributors and consumers by offering flexible and affordable options to restore comfort with competitive solutions across the United States. Microf LLC is a Georgia limited liability company and a member of the Better Business Bureau (BBB). Microf is committed to treating each of our partners fairly, honestly, and with respect in all circumstances. For additional information on the benefits of Microf, please visit www.microf.com.
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.
BrandBank was chartered as The Brand Banking Company in 1905 and is the oldest bank in Gwinnett County, GA. With total assets of $1.9 billion, the full service bank is committed to combining authentic personal service with the benefits of modern technology. The bank’s retail branch network includes offices in Buford, Duluth, Flowery Branch, Grayson, Lawrenceville, and Snellville. Loan production offices are located in Buckhead and Winder. BrandExpress locations are located in Buckhead, Suwanee, and Winder. To learn more about BrandBank, please visit www.thebrandbank.com. Member FDIC.
LANE (for Rotunda Capital)