Heating and cooling industry finance veteran Jeffrey Simpson announced the formation of private investment firm Notch Capital, LLC to partner with founder and family-owned fuel distribution, HVAC and home services companies. The firm will invest private capital for majority business purchases and equity recapitalizations.
Notch Capital will structure acquisition transactions to permit owners to sell their stake in its entirety if desired or to roll over a portion of the owner’s equity so that the seller may benefit from the future growth of the company.
The firm’s preference is to keep the existing management team in place while providing strategic guidance on future growth objectives through its team and network of industry thought leaders.
Before founding Notch Capital, Simpson spent more than 20 years working as a delivered fuels and HVAC industry specialized banker, asset manager and advisor to principals on financial, mergers and acquisition, and banking matters. He most recently served as Managing Director of Angus Energy’s financial advisory group for 12 years.
“What I’ve learned from working with over a hundred business leaders and managing a niche investment fund is that owners are acutely aware of the growing need to reach scale to achieve longevity in the retail heating and cooling industry. Creative capital options are needed for both succession planning and to keep pace with the leading firms in the industry,” said Simpson.
Retail heating and cooling industry businesses facing the challenges of accelerating industry consolidation and emerging environmental regulation will see new capital options available from Notch Capital to support acquisitions and organic growth to achieve long-term success. “The founding mission of Notch Capital is to give lower middle market business owners greater options beyond being absorbed by a competitor or taking on more and more debt for acquisitions. Our transactions will present owners with the ability to cash in some or all of their hard-earned equity and will provide the financial muscle and industry-specific guidance required to address today’s challenges,” said Simpson. Based in Connecticut, Notch Capital’s initial geographic focus will cover the eastern United States, with plans to expand its investments in companies nationwide by 2025. Learn more at www.notchcap.com or contact Notch Capital at (860)299-3358.