HV Capital Investors (HVCI) recently announced its investment in SHR Capital Partners, a search fund headquartered in Greenwich, Connecticut. The investment was made through HVCI’s affiliate, RHV Capital (RHV).
“Capital is available to those with sound business plans,” said Glenn Healey, Managing Director of HVCI. “The team at SHR Capital has a strong background and their approach to investing is complementary to our own.”
A search fund is a pool of capital raised to financially support the efforts of an entrepreneur, or a team of entrepreneurs, to locate a privately held company for acquisition. SHR seeks acquisition candidates in the business services, consumer services, and health care services industries.
RHV was formed in 2008 to focus on search fund investments. It has completed 24 search fund investments since its formation.
“We’re very excited to have RHV as an investor,” states Haas Ragab, founder of SHR. “RHV has a reputation for backing innovative strategies paired with strong business fundamentals. Their investment is a validation of our overall approach.”
“HVCI focuses on the lower middle-market and looks for companies with recurring service revenues,” said Healey. “Search funds are using similar investment criteria, so forming RHV to make search fund investments was a natural extension of our investment strategy. That extension has worked out very well and led to several good follow-on equity investments.”