Special situations private equity firm

Paceline Equity Partners

At a glance

Latest fundPaceline Equity Partners Opportunity Fund II, $780M (May 2024) S6
Deal typesPlatform, Add-on, Growth S3
GeographyNorth America S3
SectorsIndustrial & Manufacturing, Construction Services, HVAC, Plumbing & Electrical, Distribution

What Paceline Equity Partners buys

Paceline Equity Partners is a Dallas special situations investor whose five founding partners have worked together for close to 20 years. It runs private equity, corporate debt and real estate strategies. On the private equity side it wants control buyouts where something makes the deal hard for other buyers, such as a division a big company is shedding, a turnaround, a lender that ended up owning a business, or an owner who needs liquidity or growth capital. Its second fund, Paceline Equity Partners Opportunity Fund II, closed at its $780 million hard cap in May 2024, and the firm says it now manages more than $1 billion.

Paceline calls itself industry agnostic, but its recent deals cluster in flooring and building products manufacturing, site development, electrical and mechanical contracting, and distribution of plumbing and electrical supplies. It does not publish revenue or EBITDA limits. Besides buyouts it writes preferred equity and growth checks, such as a $40 million preferred equity investment in Kassel Mechanical in April 2025, capital that sits between a loan and a full sale.

Recent deals

Announced in the 24 months before October 20, 2026.

DateCompanyTypeSectorSource
Sep 2026Kelso IndustriesPreferred equity in the mechanical, electrical and plumbing services company was repaid in full when its sponsor, Peterson Partners, closed a continuation vehicleExitHVAC, Plumbing & ElectricalSource
May 2026DiverzifyLed a $240 million recapitalization of the national commercial flooring and facility services platformInvestmentConstruction ServicesSource
May 2026R.E.L.A.M.Agreed to sell the North American lessor of rail maintenance and hi-rail equipment, a platform built from a Caterpillar carve-out in 2020ExitTransportation & LogisticsSource
January 2026TRIO ElectricAcquired the Houston commercial electrical contractor, founded in 2003PlatformHVAC, Plumbing & ElectricalSource
December 2025First ChairPartnership with a short-term rental management platform serving ski and coastal marketsInvestmentSource
Oct 2025EventLink GroupSignificant equity investment in a Michigan experiential marketing and event services companyGrowthSource
Jun 2025Everflow SuppliesEquity investment in a New Jersey master distributor of plumbing, electrical and fire protection productsGrowthDistributionSource
Apr 2025Kassel Mechanical$40 million preferred equity investment in a Columbus, Ohio mechanical, electrical, plumbing and fire suppression contractorInvestmentHVAC, Plumbing & ElectricalSource
Dec 2024Falcon EquipmentCanadian specialty truck and equipment company added to R.E.L.A.M.Add-onTransportation & LogisticsSource

Portfolio by sector

From the firm's portfolio page S4.

Corporate Debt

  • Kassel Mechanical
  • Data Axle
  • GCOM
  • Promise Confections

Private Equity

  • AHF Products
  • B&S Site Development
  • Diverzify
  • EventLink Group
  • Everflow Supplies
  • First Chair
  • Quick Fitting
  • TRIO Electric
  • Wyndham Collection

Past investments: R.E.L.A.M., Kelso Industries, Optimal Blue

Greymont’s take

How Paceline Equity Partners fits a seller

Paceline is worth a call when a company's story is complicated: a business recovering from a rough stretch, a division a larger parent wants to sell, an owner who needs liquidity on a short clock, or a contractor that has grown faster than its balance sheet. The firm says it aims to close with certainty and speed, and its underwriting rule is that a deal must return its full cost even in a severe downturn, so expect close attention to downside cases and deal structure.

A deal can be a control buyout, as with TRIO Electric and Wyndham Collection, or a preferred equity or growth investment where the current team keeps running the company, as with Kassel Mechanical and Everflow Supplies. Owners offered preferred equity should ask what return it carries, when it must be repaid, and what happens if the company cannot repay on time.

Questions owners ask

Does Paceline buy whole companies or only provide capital?

Both. Its private equity strategy targets control buyouts, and recent ones include TRIO Electric in January 2026 and Wyndham Collection in October 2024. It also makes preferred equity and growth investments, such as Kassel Mechanical and Everflow Supplies in 2025, and runs separate corporate debt and real estate strategies.

What kinds of situations does Paceline look for?

Its focus areas list control buyouts where there is complexity, corporate divestitures, turnarounds and restructurings, owners who want liquidity or growth capital, and joint ventures. It invests in North America and says it screens for sectors that suit this approach rather than sticking to a fixed list.

How big is Paceline's latest fund?

Paceline Equity Partners Opportunity Fund II closed in May 2024 with $780 million of commitments, well above its $500 million target. The firm said it had raised nearly $1.5 billion across its two funds and co-investment vehicles.

Sources

  1. S1Paceline Equity Partners home page Accessed October 20, 2026
  2. S2Paceline Equity Partners: About Us Accessed October 20, 2026
  3. S3Paceline Equity Partners: Focus Areas Accessed October 20, 2026
  4. S4Paceline Equity Partners: Our Portfolio Accessed October 20, 2026
  5. S5Paceline Equity Partners: News Accessed October 20, 2026
  6. S6Paceline Closes Oversubscribed Second Fund at $780 Million Hard Cap (May 21, 2024) Accessed October 20, 2026
  7. S7Paceline Provides $40 Million Investment in Kassel Mechanical (April 10, 2025) Accessed October 20, 2026
  8. S8Paceline Equity Partners Agrees to Sell R.E.L.A.M. (May 11, 2026) Accessed October 20, 2026
  9. S9Diverzify Completes $240 Million Recapitalization (May 21, 2026) Accessed October 20, 2026
  10. S10Paceline Fully Realizes its Investment in Kelso Industries (September 15, 2026) Accessed October 20, 2026
  11. S11Paceline portfolio: TRIO Electric (investment date January 2026) Accessed October 20, 2026

Compiled by Greymont Advisors from public sources, including the firm’s own website and press releases. Greymont is not affiliated with Paceline Equity Partners. Figures are as reported on the dates shown and may have changed. Request a correction

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