Private Equity Pours Millions Into HVAC Plumbing Trades — Here’s Why

If you’ve ever been woken up at 3 a.m. by a broken furnace in January — or had to wait weeks for a plumber to fix a leaky pipe — you know one thing for sure: someone always needs HVAC and plumbing services. And right now, private equity firms are betting millions on this exact reality.

Private equity pours millions into HVAC plumbing trades — not because it’s trendy, but because it’s unstoppable. Unlike flashy tech startups, these trades offer steady demand, recurring revenue, and loyal customers. Whether you’re a trade professional, a small business owner, or just curious about where the money’s flowing, this isn’t just news — it’s a game-changer.

Let’s break down why this surge is happening, what it means for the industry, and how it could impact your wallet, career, or next business move.

Why Are Private Equity Firms Investing So Heavily in HVAC and Plumbing?

You might think private equity only chases Silicon Valley unicorns. But here’s the truth: they’re increasingly drawn to “boring” industries that never go out of style.

According to a 2024 report by Bain & Company, private equity firms deployed over $12 billion into the U.S. residential services sector last year — with HVAC and plumbing accounting for nearly 40% of that spend. Why?

• Recession-proof demand: When the economy dips, people don’t stop needing heat, AC, or clean water.
• Fragmented market: Over 90% of HVAC and plumbing businesses in the U.S. are independently owned — making them easy targets for consolidation.
• Recurring revenue: Service contracts, maintenance plans, and emergency calls = predictable income.

“These aren’t startups. They’re essential infrastructure,” says John Carter, Managing Partner at TPG Capital. “You can’t outsource a furnace repair to India. And when it’s 10°F outside, customers don’t care about your website — they care about your truck showing up.”

Private equity sees this as a goldmine: buy small, local companies, streamline operations, invest in marketing and tech, then scale them into regional powerhouses.

How Is Private Equity Changing the HVAC and Plumbing Industry?

It’s not just about money. It’s about transformation. Here’s how private equity is reshaping the trades:

Real example: In 2023, Patriot Capital bought 12 small HVAC companies in Ohio and merged them into Patriot Climate Solutions. Within 18 months, they increased revenue by 217%, reduced customer wait times from 72 hours to under 4 hours, and raised technician pay by 35%.

That’s not magic. That’s operational excellence — the kind private equity excels at.

What’s Driving the Surge? 3 Key Trends

1. Aging Workforce + Skills Gap

The average HVAC technician is 52 years old. By 2030, the U.S. could face a shortage of over 100,000 skilled tradespeople, according to the U.S. Department of Labor.

Private equity is stepping in to solve this — by funding apprenticeship programs, partnering with community colleges, and offering signing bonuses up to $10,000 for new technicians.

2. Climate Regulations Are Boosting Demand

New federal energy efficiency standards (like the 2023 DOE rules) require older HVAC systems to be replaced with higher-efficiency models. That’s millions of homes needing upgrades — and private equity is positioning companies to capture that wave.

“We’re seeing 3x more calls for heat pump installations since 2022,” says Maria Lopez, COO of Summit HVAC Group, a PE-backed company in Colorado.

3. Homeownership Trends

With 65.8% of U.S. households owning their homes (U.S. Census, 2024), and the average home age at 44 years, aging systems are everywhere. Private equity knows: old homes = old systems = constant repair needs.

The Pros and Cons: Is PE Investment Good for Tradespeople?

Let’s be real — not everyone loves private equity. Here’s a balanced look:

The bottom line? For technicians: better pay, better gear, better future.
For owners: exit strategy or growth opportunity.
For customers: faster service, clearer pricing, more reliability.

How Are PE-Funded Companies Winning Customers?

It’s not just about fixing pipes anymore. Here’s what’s working:

• Subscription plans: “Heating Care Club” — $99/year for 2 tune-ups + priority service.
• Digital booking: Customers book via app, get real-time technician tracking.
• Review generation: Automated SMS requests after service — 78% of PE-backed firms now have 4.8+ star ratings on Google.
• Local SEO dominance: Every location has a dedicated page optimized for “HVAC repair near me” — and they’re ranking #1.

One firm, ComfortFirst, increased leads by 300% in 12 months by simply investing $50K in Google Ads + local landing pages. No magic. Just strategy.

What Does This Mean for You?

👷‍♂️ If You’re a Technician:

• Opportunity: PE-backed firms are hiring aggressively. Many offer tuition reimbursement for certifications.
• Action: Get NATE-certified. Learn to use diagnostic tools. Apply to firms with “career path” in their job posts.

🏢 If You Own a Small HVAC/Plumbing Business:

• Opportunity: Sell for 5–8x EBITDA (profit). Or partner with PE to scale without taking on debt.
• Action: Clean up your books. Get your Google Reviews in order. Document your processes.

🏠 If You’re a Homeowner:

• Benefit: More competition = better service, faster response, fairer pricing.
• Tip: Look for companies with “PE-backed” or “nationwide network” — they’re more likely to have trained staff and warranties.

A Quick Look at the Big Players

Here are 3 major private equity firms actively investing in HVAC/plumbing (as of 2025):

(Source: Private Equity International , 2024)

💡 Fun fact: Blackstone’s Evergreen Services now operates in 32 states — and handles over 1.2 million service calls annually.

How PE Investment Could Shape the Future of Trades

By 2030, experts predict over 30% of all HVAC and plumbing businesses in the U.S. will be owned or partially owned by private equity.

That doesn’t mean mom-and-pop shops are dead. But it does mean:

• The “lone ranger” technician will become rare.
• Brands will matter more than word-of-mouth.
• Technology will be the new wrench.

And for the first time in decades, the trades are being treated like scalable businesses — not just hard work.

Frequently Asked Questions (FAQ)

Q1: Is private equity buying up all the good HVAC companies?

Not all — but they’re targeting the most profitable ones. Many small operators are selling because they’re tired, retiring, or overwhelmed. If you’re a strong operator with good systems, you’ll still have options — including staying independent.

Q2: Will PE ownership make services more expensive?

Not necessarily. PE firms often lower prices initially to gain market share. Then they use subscription models and upsells to increase revenue long-term. The key? Transparency. Look for companies that clearly list pricing online.

Q3: Are technicians getting paid more under PE ownership?

Yes — significantly. The average HVAC tech salary in a PE-backed firm is now $68,000/year, up from $52,000 in 2020 (per ASHRAE). Many also get health insurance, retirement plans, and paid training.

Q4: Should I start an HVAC business now?

Yes — but do it smart. Start small. Focus on service quality and online reviews. If you build something solid, you could sell to PE later — or partner with them to grow. The window is open.

Q5: Is there a risk of corporate greed hurting customer service?

There’s always a risk. But top PE firms know: customer retention is their #1 KPI. One bad review can cost them millions. That’s why they invest heavily in training, CRM systems, and service guarantees.

Q6: How can I find a PE-backed HVAC company near me?

Search for companies with:

• Multiple locations in your state
• Professional websites with service areas listed
• “Founded in [Year]” + “Now part of [Brand Name]”
• 4.8+ Google ratings and hundreds of reviews

Conclusion: This Isn’t Just Money — It’s a Renaissance for the Trades

Private equity pours millions into HVAC plumbing trades — not because it’s easy, but because it’s essential.

This isn’t Wall Street exploiting blue-collar workers. It’s Wall Street finally recognizing that the backbone of American homes isn’t apps or AI — it’s skilled hands, reliable trucks, and honest service.

For technicians: better pay, better tools, better futures.
For homeowners: faster service, clearer pricing, more peace of mind.
For the industry: a long-overdue upgrade.

If you’re in this field — whether you’re holding a wrench or running a business — this is your moment. The trades are no longer “just a job.” They’re a valuable, growing, respected industry.

👉 Share this article with a technician, a small business owner, or a friend thinking about a career change. The trades are rising — let’s make sure everyone knows it.