Dubin Clark makes 5x its money on Sila Heating & Air Conditioning, Webster preps sale of CenExel

Webster's CenExel readies sale and MSCP joins booming HVAC mark.

Morning, everybody!

Heat wave: In case you haven’t noticed, a lot of consolidation has been occurring in the home services universe. This one hits close to home as I am patiently awaiting new AC installment before the next hot spell hits New York…

Morgan Stanley Capital Partners recently backed Sila Heating & Air Conditioning in a bid to capitalize on the growing consolidation opportunity within the residential HVAC services universe, writes PE Hub’s Karishma Vanjani. With the transaction, exiting investor Dubin Clark generated a 250 percent IRR and over 5x return in under two years, a source said.

Over the past few years, the HVAC services industry has transformed. For starters, providers have invested heavily in technology, MSCP managing director Adam Shaw said: “Years ago they would come with a carbon copy page; now it’s about having the right tablet in the salesperson hand.”

Sila, which has serviced HVAC units for more than 30 years, has also benefitted from scale, having developed an HR team among other things. This solves a common industry problem: a shortage of technicians. “We are competing against the one-to-five-person team down the street that can’t invest in an HR team,” Shaw said.

Read PE Hub’s full report here.

Clinical site opportunity: Pre-covid, CROs and pharma companies would look to dozens of clinical research sites to execute their studies, but managing a large collections of sites has proven less efficient through the pandemic, I’m told.

That dynamic is likely to bode well for one such asset preparing for a sale — CenExel Clinical Research, a portfolio company of Webster Equity Partners. CenExel, a clinical site organization, has a concentrated model with facilities of scale offering centralized capabilities. It helps conduct studies in post-op pain (analgesia), neurology, psychiatry, vaccines and sleep on behalf of pharmaceutical companies.

Fireside chats are going on right now and a formal process is poised to soon launch, sources familiar with the matter told me. Rothschild, out of London, and Edgemont Partners have been mandated to advise on the process.

Check out my full report on PE Hub.

That’s it for today! Have a great week ahead, and as always, write me at springle@buyoutsinsider.com with tips, comments or just to say hello!