Microf, LLC, a leading provider of financing solutions to the HVAC industry, has entered into an agreement with Rotunda Capital Partners, LLC (Rotunda Capital), a lower-middle-market private equity firm, and with BrandBank, a full service bank with strong roots in the Atlanta area, for a combined $28 million debt and equity raise that will provide Microf with the funding needed to continue its’ aggressive growth and expansion in the HVAC market.

With this capital raise, Microf will maintain its leadership position and is well positioned for significant growth with its current network of manufacturer, distributor and dealer partners. This agreement establishes Rotunda Capital as the largest investor in Microf and positions industry veteran Craig Rosato as the CFO for Microf. Much of Rotunda’s investment will be used to fuel growth and improve operational technology to further enhance quality and timely approval decisions. BrandBank’s credit facility will enable Microf to continue helping HVAC contractors “Restore the Heating/Cooling Needs of the Consumer with an Affordable Monthly Payment.”

“Microf evaluated several potential investors to propel the company forward, and management unanimously selected Rotunda Capital as the ideal partner because of their deep knowledge in the space and willingness to actively work with our management team to drive the Company’s growth,” said Mitch Masters, CEO and Co-Founder of Microf. “We are excited to have Rotunda on board and leverage their expertise in specialty finance as we introduce our flexible rent-to-own financing option to consumers across the country.”

“Microf’s unique solution addresses a lack of financing options for credit constrained consumers that are challenged by a need to replace their HVAC system.  The company has received strong support from a leading HVAC manufacturer, many top distributors, hundreds of dealers and thousands of consumers,” said John Fruehwirth, managing partner at Rotunda Capital. “Rotunda Capital’s investment and desire to actively support existing management, coupled with Craig’s expertise, will provide additional support to attract new distributors and dealers as Microf rapidly rolls out the company’s innovative RTO product nationwide.”

“We see a significant replacement trend for aging residential HVAC equipment in the coming years and believe Microf is ideally positioned to capture market share by providing a financing option that is better for many consumers,” said Bob Wickham, partner at Rotunda Capital. “Microf represents the fourth specialty finance investment for the Rotunda Capital team and we are eager to partner with Microf to leverage its unique niche in an untapped market.”