ATLANTA — Microf LLC, a provider of residential lease-to-own products for the HVAC industry, raised $96.7 million in growth capital. The combined debt and equity raise is funded through a new $40 million committed senior debt facility provided by Atalaya Capital Management with an additional $40 million accordion feature; a new $10 million senior debt facility provided by Microf’s existing lender, BrandBank; and $6.67 million in equity provided by current equity investors. These capital commitments continue Microf’s financial momentum after securing an initial investment from private-equity firm Rotunda Capital Partners in May 2015. The capital provides the company with a diversity of funding sources, staggered maturities, and ample senior capacity to fund its continued rapid growth.

“Microf is changing the way U.S. homeowners restore their heating and cooling needs with affordable monthly payments,” said Mitch Masters, CEO, Microf. “This round of funding will accelerate the profitable growth of Microf and allow us to assist many more homeowners who need alternative solutions to acquire a new HVAC system for their home.”

This capital raise comes on the heels of a string of significant milestones for Microf including:

  • A partnership with United Technologies Corp. to provide the Microf program to their entire nationwide network of Carrier, Bryant, Payne, and International Comfort Products (ICP) distributors and contractors;
  • The launch of a secure, stable, and scalable IT infrastructure and a proprietary decision engine that will allow Microf to grow well into the future; and
  • The launch of a simple online application process that delivers decisions within seconds through a secure platform.

“HVAC is a mature asset class in need of creative financing solutions,” said Masters. “According to industry statistics, fewer than 30 percent of U.S. homeowners have enough savings to pay for a new residential HVAC system. The market, as a whole, is in need of an affordable alternative to help homeowners purchase new systems through monthly payment options.”

“With our strong relationship with United Technologies, our scalable technology, and our focus on the distributor/contractor/homeowner relationship, Microf is uniquely positioned to shape the next phase of evolution for alternative payment options in the HVAC Industry,” said Jay Kimbro, chairman of the board, Microf.

Publication date: 5/24/2017