#IndustrialTech

Integrated Facilities Management

After 50 years, commercial building systems start to fail and the renovation or replacement of major infrastructure becomes too high-risk to ignore. The average age for commercial buildings in the U.S. is now 53 years, forcing operators to address complex issues like code and ADA compliance, energy performance, faulty red flag systems and environmental contaminants, and driving an increased need for outsourced support.1

LLR seeks to partner with Integrated Facilities Management companies helping building operators streamline operational processes and control operating costs. Reach out to Tim Mounsey to discuss relevant investment opportunities.

Why Operators are Outsourcing Facilities Management

Hybrid Model Delivery

The hybrid service delivery model, where vendors self-perform work in dense markets and create a network of third-party subcontractors in other geographies, allows IFM providers to effectively service customers across multiple regions or a national footprint.

Shift to Multiservice Solutions

Facility managers are increasingly consolidating vendor relationships in favor of integrated, multiservice solutions that can deliver a “one stop” solution across geographies and trade categories. Integrating multiservice solutions allows IFMs to create a competitive edge against self-perform facility management companies.

IoT Revolution

The implementation of IoT devices has raised the industry’s technical floor, but a lack of technological expertise and the high cost of retaining in-house technical staff has led to an increase in outsourcing to vendors with technical capabilities.

Growing Focus on Outsourced Solutions

25%
2
of total indirect spending can be dedicated to facilities management
20%
2
of outsourced market held by IFM, and growing
$1.9T
2
The global market for in-house and outsourced facilities management by 2024

Get to Know LLR Partners

20+ Years of Investing

  • Founded in 1999, LLR is a growth-oriented private equity firm investing in growth technology and service companies.
  • Raised over $6.0 billion of capital across seven funds.
  • We are focused on organic, topline growth initiatives and complementary acquisitions to create value for all stakeholders.
  • Dedicated focus on technical service organizations.

Operational Support

  • Leverage best practices developed through codifying successful strategies across our 130+ investments since inception.
  • Access LLR’s Value Creation Team (strategy, talent, S&M, Product, finance, M&A) to help accelerate growth.

Focus on Partnership

  • Flexible capital provider (majority or minority ownership).
  • Reward and motivate key players with equity.

Investment Criteria

  • Platforms: Proven business model with $7M – $25M of EBITDA, and the ability for LLR to invest $40 – $150M of equity.
  • Add-on Acquisitions: Proven business model with > $1M of EBITDA.
Relevant Investment Experience

LLR invests in the sectors where our investment experience indicates there are attractive business models and market trends supporting strong growth potential. Here are some of our related investments in industrial services.

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See You There?

March 17, 2024
RFMA 2024
Learn More
October 9, 2024
IFMA 2024
Learn More

Meet the LLR Team

Michael Levenberg

Michael Levenberg
Katie Lankalis

Katie Lankalis
Mike Zabin

Mike Zabin
Tim Mounsey

Tim Mounsey
Sahil Parikh

Sahil Parikh
Jacob Shiff

Jacob Shiff
Brandon Jones

Brandon Jones

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References

  1. Kyle Christiansen. “Growing Old: 6 Risks of Aging Facilities,” Maintenance World, 2023, https://maintenanceworld.com/2023/04/06/growing-old-6-risks-of-aging-facilities/
  2. Sourav Das Adhikari, Steve Hoffman, and Britta Lietke. “Six emerging trends in facilities management sourcing,” McKinsey, 2019, https://www.mckinsey.com/capabilities/operations/our-insights/six-emerging-trends-in-facilities-management-sourcing
Disclaimer:

The information presented herein is intended for an audience of potential LLR portfolio companies and the intermediaries supporting their capital raise processes. Named LLR investments presented herein do not reflect a complete list of LLR investments and are provided for informational purposes only. Certain statements about LLR made by portfolio company executives and other quoted parties herein are intended to illustrate the work of LLR’s Value Creation Team with such portfolio companies or reflect the individual’s perspective on the featured industry sector. Such portfolio companies are controlled by investment vehicles managed by LLR. Quoted parties were not compensated in connection with their participation, although they generally receive compensation and investment opportunities in connection with their portfolio company or Senior Operating Advisor roles, and in certain cases are also owners of portfolio company securities and/or investors in LLR-sponsored vehicles. Such compensation and investments subject participants to potential conflicts of interest in making the statements herein.