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Redwood Services
Redwood Services, led by John Conway, acquires and operates HVAC, plumbing, and electrical businesses using a permanent-hold model from Memphis.
Redwood Services
Redwood Services launched in 2020 in Memphis, Tennessee, founded by operating executive John Conway alongside investors Richard Lewis and David Kyle. The firm targets essential residential trades — heating, cooling, plumbing, and electrical services — where the average business owner is approaching retirement without a next-generation buyer. Redwood buys majority stakes in these companies, leaves the original brand and management intact, and provides back-office infrastructure, training, and capital for expansion. The firm's strategy sits at the intersection of private equity and permanent-hold investing, with no fund-life constraints forcing a sale. Portfolio companies keep their local names and operational autonomy while accessing shared resources for recruiting, marketing, and vendor negotiations. Confirmed acquisitions include A-Abel Heating & Cooling in Ohio, Advanced Air Systems in Florida, and Skagit Valley's Valley Heating & Cooling (per the firm's official communications). The geographic footprint spans the Southeast, Midwest, and Pacific Northwest, targeting metro areas with aging housing stock and strong owner-operator cultures. As of 2024, Redwood had completed over 15 platform acquisitions. The firm operates from its Memphis headquarters and backs each local partner with a dedicated operations team. The model mirrors the residential-services consolidation playbook that produced major public companies in pest control and lawn care, applied to the even more fragmented HVAC and plumbing trades where national chains hold low single-digit market share. In October 2023, the firm added three new partner companies in a single quarter, signaling accelerated deal flow. Redwood's structural differentiator is its permanent-capital mandate. Unlike conventional private equity funds that must exit within five to seven years, Redwood can hold businesses indefinitely, aligning with the multi-decade ownership horizon of the families it partners with. This eliminates the tension between short-term EBITDA optimization and the long customer relationships that define the best home-services brands.
General information
Firm type
Asset Manager
Year founded
2020
AUM
Undisclosed
Location
Region
North America
Country
United States
City
Memphis
Corporate office
Memphis, TN, United States
Principals
John Conway
CEO
Richard Lewis
Co-Founder & Partner
David Kyle
Co-Founder & Partner
Sector focus
Frequently asked questions
Who runs investment decisions at Redwood Services?
John Conway as CEO leads the partnership evaluation and acquisition strategy, working with co-founders Richard Lewis and David Kyle. The firm evaluates potential partner companies based on owner character, market position, and cultural fit rather than purely financial metrics. Day-to-day portfolio company oversight falls to the operations team, not a centralized investment committee.
How does Redwood Services source proprietary deal flow?
Redwood sources deals through industry trade networks, HVAC and plumbing manufacturer relationships, and direct outreach to business owners approaching retirement. The firm avoids auction processes that attract competing financial buyers. Many introductions come from existing partner operators who recommend peers in adjacent geographies.
Is Redwood Services structured as a single family office or does it operate more like a private equity firm?
Redwood operates as a permanent-hold acquisition platform rather than a traditional blind-pool private equity fund. It deploys committed institutional and family-office capital with no fixed exit timeline. The structure borrows from the family-office playbook of indefinite ownership but professionalizes operations like a PE-backed consolidator.
What investment stages does Redwood Services typically target?
Redwood targets mature, cash-flowing residential service companies with at least several million dollars in annual revenue and a demonstrated local reputation. The firm acquires majority control with the founder retaining meaningful minority equity. Target companies typically have 20-plus years of operating history and stable recurring maintenance contracts.
Which sectors does Redwood Services explicitly avoid?
Redwood focuses exclusively on the essential residential trades — HVAC, plumbing, and electrical — and avoids discretionary home improvement, new-construction-dependent trades, and commercial-service models. The firm has consistently declined to enter roofing, landscaping, or other weather-dependent verticals where revenue visibility is lower.
Does Redwood Services participate in fund commitments or only direct acquisitions?
Redwood deploys capital exclusively through direct majority acquisitions of operating companies. It does not invest as a limited partner in third-party funds, make minority investments, or pursue add-on acquisitions that sacrifice the original brand identity of partner companies.
What is Redwood Services' known posture on co-investments alongside external GPs?
Redwood has not publicly reported co-investing alongside outside general partners in its acquisitions. Each platform investment appears to be funded entirely from the firm's permanent capital base. The firm's preference for long-duration holding periods makes shared ownership with duration-constrained PE funds structurally unlikely.
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