ST. PETERSBURG, Fla.--(BUSINESS WIRE)--Applied Real Intelligence (“A.R.I.”), a prominent provider of innovation financing solutions, is pleased to announce a strategic term loan investment in InnoVen Services, Inc. (“InnoVen”), a rapidly growing Dallas-based platform specializing in HVAC, plumbing, and electrical services. The term loan facility will support InnoVen’s acquisition-driven roll-up strategy, focused on consolidating the fragmented residential services market. By leveraging advanced data, technology, and processes, InnoVen aims to streamline operations, enhance customer service, and build a scalable, integrated home services platform across Texas and the broader Southwest region.
Fueling Growth Through Strategic Capital and Innovation
The term loan from the A.R.I. Senior Secured Growth Credit Fund will enable InnoVen to continue its acquisition-driven expansion across Texas and the Southwest. InnoVen has already acquired nine businesses in key markets, including Dallas-Fort Worth and Hill Country, positioning itself as a market leader in the region. The capital infusion from A.R.I. will accelerate the integration of advanced technology and operational efficiencies, driving significant value creation while minimizing equity dilution for the company’s founders.
“A.R.I.’s investment in InnoVen is rooted in a clear, compelling thesis: the home services sector is a growing, recession-resistant market that generates consistently strong cash flows,” said Zack Ellison, Managing General Partner and Chief Investment Officer of the A.R.I. Senior Secured Growth Credit Fund.
“This industry remains highly fragmented, with no dominant players and minimal regulation, making it an ideal environment for InnoVen’s roll-up strategy. The company’s proven acquisition and integration framework, combined with its advanced technology and data platform, positions it well for continued growth through intelligent, selective acquisitions and strong organic expansion.”
Jennifer Post, Co-Chair of Thompson Coburn LLP’s Emerging Companies Group, served as A.R.I.’s primary deal counsel on the transaction. With extensive experience in venture debt and private credit, Post’s expertise ensured a seamless and efficient process, aligning with A.R.I.’s disciplined approach to structuring growth-focused financing solutions.
Transforming the Home Services Market with InnoVen’s Proven Roll-Up Strategy
The residential services sector, valued at approximately $500 billion, is growing at more than twice the rate of GDP due to rising demand for energy-efficient solutions, government incentives, and increased consumer focus on indoor air quality. Additional tailwinds from population growth, new housing developments, and the need for upgrades to aging homes are creating substantial opportunities for InnoVen.
InnoVen is capitalizing on these favorable trends through a focused roll-up strategy, acquiring well-established businesses at attractive valuation multiples of three (3x) to six (6x) times EBITDA. The company integrates these acquisitions into a unified, technology-driven platform, enhancing value through operational efficiencies, improved margins, and multiple expansion. By consolidating HVAC, plumbing, and electrical services, InnoVen delivers bundled solutions that meet a full range of residential needs, driving higher customer retention and satisfaction.
Godson Udeh, Co-Founder and CEO of InnoVen, commented, “A.R.I.’s debt financing process was seamless, allowing us to focus on executing our M&A strategy without disruptions. With A.R.I.’s financial support, we’ve been able to accelerate the integration of acquired businesses, streamline back-office functions, optimize procurement, and enhance employee training and retention. This partnership has significantly improved our operational capabilities and enabled us to implement effective cross-selling initiatives, all while preserving our founders’ equity stake.”
Daniel Seon, Co-Founder and CFO of InnoVen, added, “Zack Ellison, Godson Udeh, and I have shared a close professional relationship for 14 years, dating back to our time together at The University of Chicago Booth School of Business. A.R.I. has gone well above and beyond what any other lender would do by providing invaluable support in facilitating our equity raise. A.R.I. has provided strategic advice, meticulous planning, and well-timed introductions to key investors, significantly accelerating our equity fundraising efforts that will help fuel our acquisition pipeline.”
“A.R.I.’s partnership with InnoVen aligns perfectly with our strategy of backing safe, scalable, technology-centric businesses that deliver essential services in underserved American markets,” said Ellison. “This investment underscores our commitment to supporting high-growth roll-ups that leverage technology to transform traditional industries and create lasting value in the American innovation economy.”
A.R.I.’s Expanding Portfolio of High-Growth, American Innovators
A.R.I.’s investment in InnoVen builds on the firm’s momentum from recent successes with Lights Out Sports and Civitech, underscoring its commitment to backing visionary founders who are transforming their industries.
A.R.I.’s strategic investment in Lights Out Sports, founded by NFL legend Shawne Merriman, enabled the company to scale its Lights Out Xtreme Fighting events, grow its Lights Out Sports TV streaming platform, and launch The Ultimate Fan Zone, an innovative pre-game show spotlighting the fan experience at NFL tailgates. A.R.I.’s strategic growth capital propelled the brand to new heights, attracting major advertisers and expanding its reach across multiple digital channels.
Similarly, A.R.I.’s investment in Civitech, a veteran-led company based in Austin, Texas, accelerated the expansion of its innovative voter engagement tools aimed at boosting participation and strengthening democracy. Civitech’s technology platform has enabled campaigns to effectively connect with underrepresented voters, making a significant impact in the lead-up to the 2024 elections.
The A.R.I. Senior Secured Growth Credit Fund offers loans with mid-teens income potential and significant equity upside, providing a safer way for investors to access high-growth opportunities. By focusing on underserved segments of the American innovation economy – including niche industries, emerging regions, and diverse founder profiles – A.R.I. aims to deliver strong portfolio diversification and enhanced downside protection. The firm’s portfolio is designed to generate compelling financial returns while driving transformative industry-wide change, creating lasting value for investors and the broader American economy.
About Applied Real Intelligence (A.R.I.)
You built it. A.R.I. helps you keep it. At Applied Real Intelligence, we provide funding to fuel growth, empowering founders to retain control of the companies they’ve built through customized financing solutions that minimize equity dilution. For investors, A.R.I. creates a safer way to access innovation by investing in high-growth businesses with carefully managed risks in underserved segments of the American innovation economy. To learn more, visit www.arivc.com.
