Apex Service Partners to receive minority investment at $10 billion valuation 

Residential HVAC, plumbing, and electrical platform Apex Service Partners is set to receive a minority investment from asset management giant Apollo, according to a person with knowledge of the matter.  

What’s happening: The transaction values Apex at $10 billion, the person said, speaking on the condition of anonymity as the financial terms are confidential. 

• Goldman Sachs advised on the deal. A representative for Apex declined to comment, and Apollo didn’t immediately return a request for comment. 

Zoom out: Founded in 2019 with backing from California-based Alpine Investors, Apex is the largest private equity-backed residential HVAC, plumbing, and electrical platform in the U.S.

• The company generates over $500 million of EBITDA, according to a person familiar with the company, on more than $3 billion of annual revenue, according to investor documents viewed by Homepros. 
• In late 2023, Alpine completed a $3.4 billion secondary market transaction solely to fund Apex’s continued growth. 
• Apex operates 75 local contracting brands across 46 U.S. states and counts 13,000 technicians, according to the documents. 

The big picture: The deal — expected to close later this year, the person said — follows a string of private equity-backed platform activity over the past year, including Redwood Services’ majority investment from Altas Partners, Blackstone’s $2.5 billion acquisition of Champions Group, and the reported sale processes of American Residential Services (ARS) and USA Hometown Experts.

• This is breaking news. Check back for updates.