RLA Investments is a private equity firm that focuses on making investments in small and medium-sized companies. Based in New York, RLA has been active since 2013 and has made investments across a range of sectors including technology, healthcare, consumer products, and business services. Some key things to know about RLA Investments:
RLA primarily targets companies with $5-50 million in revenue for investment, though will consider larger companies in certain cases. It looks to invest $5-25 million per deal. RLA focuses on buyouts, recapitalizations, corporate divestitures, and growth equity investments. It has expertise in helping family-owned businesses and entrepreneur-led companies transition to institutional ownership. The firm takes a hands-on approach to creating value and helping management teams execute on growth strategies. RLA’s portfolio is diverse but it has particular expertise in tech-enabled services, healthcare services, and consumer products. The firm is based in New York but its portfolio companies are located across the US. RLA was founded in 2013 by experienced private equity professionals and has made over a dozen platform investments. Key members of the investment team previously worked at firms like Citigroup and Investcorp. The firm has approximately $500 million in assets under management. RLA stands out for its focus on the lower middle market and its network to source unique opportunities. The firm prides itself on being easy to work with for management teams. RLA has successfully exited several investments through sales to strategic acquirers and other financial sponsors.
RLA Targets the Lower Middle Market
RLA Investments focuses its investment activity on the lower middle market, which refers to smaller companies with revenues between $5-50 million. This is a segment where there is less competition from larger private equity firms, allowing RLA to source more proprietary deal flow. At the same time, lower middle market companies are large enough to already have an established business model and infrastructure. RLA believes that this segment provides the best risk-adjusted returns in private equity investing.
Experience With Specific Industry Sectors
While RLA Investments pursues deals across a range of industries, the firm has developed particular expertise in certain sectors. This includes technology-enabled services like healthcare IT, financial services IT, and education software. The firm also has experience in specialty healthcare services and consumer packaged goods. RLA’s focus allows it to leverage insights across its portfolio companies in specific industries to help create value.
Flexible Investment Structures
RLA can make controlling or non-controlling investments using a range of structuring options. This flexibility enables the firm to customize solutions to meet the needs of sellers and management teams. RLA may acquire a majority stake or minority stake. It is comfortable being the sole institutional investor or collaborating with others. The firm can provide equity capital, credit capital, or a combination. RLA’s ability to craft flexible approaches gives it an advantage in sourcing proprietary opportunities.
Value Creation Playbook
RLA Investments has developed a set of value creation strategies that it systematically applies to its portfolio companies. RLA assists with initiatives around accelerating growth, improving operational efficiency, enhancing management teams, and refining business models. Its due diligence process aims to identify specific opportunities to apply this playbook. RLA also helps facilitate best practice sharing across its portfolio companies. The firm takes an active board role and draws on its network of executive advisors to help management teams succeed.
Successful Exits to Strategics and Sponsors
Since its founding in 2013, RLA has exited several investments through sales to strategic acquirers and financial sponsors. This includes sales of portfolio companies to public companies and larger private equity firms. RLA’s ability to deliver attractive returns for its investors has enabled the firm to continuously fundraise and grow its assets under management. RLA’s successful track record provides validation that its investment strategies work.
In summary, RLA Investments is a private equity firm focused on the lower middle market that leverages industry expertise, flexible capital solutions, and a hands-on approach to create value for its portfolio companies. RLA targets smaller buyouts and growth equity opportunities where it can help management teams execute on their strategic vision. The firm has successfully executed its investment playbook across tech, healthcare, consumer, and business services sectors. RLA Investments has differentiated itself through its focus on the underserved small-cap segment and its network for sourcing proprietary deal flow.