Private Equity Conversations with Fexingo · 2026-07-16 · 11 min
Private equity has been systematically consolidating residential HVAC service companies across the United States. In this episode, Lucas and Luna examine one specific platform: Service Champions Group, which has rolled up more than a dozen regional HVAC contractors since 2018. They discuss the buy-and-build model, why HVAC generates such reliable cash flow, and what it means for homeowners facing higher repair bills. With U.S. residential HVAC systems reaching a median age of 13 years and replacement costs averaging $8,500, the opportunity for PE firms to aggregate fragmented local businesses is enormous. The hosts also explore how the Inflation Reduction Act's heat pump rebates have created a tailwind for these platforms, and whether consolidation ultimately improves service quality or just raises prices. A focused look at one of the hottest corners of middle-market private equity.
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