Buy and build the HVAC, plumbing and electrical companies that keep American homes running.
HVAC, plumbing and electrical services in the US generate roughly $180B of annual revenue. The work is recurring, local and non-discretionary. Ownership is spread across more than 100,000 mostly single-location businesses, which is exactly the condition a disciplined roll-up is built for.
Roughly 4.8 turns of multiple arbitrage before a single dollar of EBITDA growth. Growth is upside on top.
Cedarline runs a concentrated book. Three control platforms, each built out with bolt-ons, so capital and operating attention stay focused. Roughly a third of the fund is reserved for follow-on bolt-on capital.
Across earlier roles the principals deployed roughly $340M into essential-services platforms, with four of six realised. Two representative deals are carried forward as case studies. Attributed track record is illustrative and fictional.
Cedarline's principals bought a founder-owned HVAC business and added nine bolt-ons across adjacent metros. Dispatch and pricing were professionalised, the membership base tripled, and the platform was sold to a larger sponsor after roughly four and a half years.
A plumbing platform built across three markets with a 24/7 service desk and a doubled book of service agreements. The recurring revenue and multi-market density made it a natural acquisition for a national strategic buyer after about five years.
Sub-$50M-EV platforms and sub-$2M-EBITDA bolt-ons, bought proprietary at disciplined multiples, with an operator in the business. Too small for the big funds, too operationally demanding for the strategics.
| Case | Net MOIC | Net IRR | Assumptions |
|---|---|---|---|
| Downside | 1.6x | 11% | Slower deployment, ~7.5x exit, one platform underperforms |
| Base | 2.5x | 23% | 3 platforms, ~4.7x blended entry, 9.5x exit, plan hit |
| Upside | 3.1x | 29% | Faster bolt-on cadence, 11x exit, multiple expansion |
Sensitivity to platform exit multiple (base case): 8.0x → 2.1x / 18% · 9.5x → 2.5x / 23% · 11.0x → 2.9x / 27%. Full model and the J-curve are in Returns & Scenarios, or model your own commitment in LP Calc.
| Fund | Cedarline Capital Fund I, L.P. |
| Structure | Delaware limited partnership |
| Target / hard cap | $180M / $250M |
| GP commitment | 2.5% ($4.5M) |
| First close | Q4 2026 |
| Minimum LP commitment | $5M |
| Term | 10 yrs + two 1-yr extensions |
| Investment period | 5 years |
| Management fee | 2% (committed, then invested) |
| Carried interest | 20% |
| Preferred return | 8% |
| Waterfall | American, deal-by-deal, clawback |
Minimum LP commitment of $5M, negotiable for anchor investors. The GP commits 2.5% alongside. Data room access and a first meeting available on request.