LEHI, Utah--(BUSINESS WIRE)--Maddix Capital Services Fund II (“Maddix Services”), the second private equity fund under the Maddix Capital banner, has been launched out of Utah to infuse hundreds of millions of dollars into scalable service-based investments. As of today, 30% of the fund has been soft-committed with plans to segment the remainder amongst family offices, ultra-high-net-worth individuals, and institutional investors. Launched as a services-centric fund on the heels of one of Maddix Capital’s most successful investments to date (AK Masonry, a leading masonry and concrete contractor, earlier this year), Maddix Services is a target $125+ million closed-end fund – $100M in equity plus a $25M opportunistic credit piece. The fund identifies service-based industries that remain largely untapped by conventional private equity players but have proven to be highly profitable when backed by the right resources, teams, and partners.
Maddix Services aims to offer incentives, deal structures, and outcomes that align founders, investors, and the fund in a way that benefits all parties simultaneously. To achieve this, its team maintains a sharp focus on shared services, bolt-on M&A strategies, balanced leverage, expedited liquidity events, and entrepreneur-favorable earnouts. Maddix Services also bridges the gap between private equity and private credit as a “total return” investment vehicle, offering a hybrid growth-and-income generation model that is expected to yield both quarterly distributions and liquidation events for investors.
“One thing that we learned from the AK Masonry transaction is that not all outside capital should be treated equally,” said Jake Gubler, Partner at Maddix Services. “The entrepreneurs that we plan to back at Maddix Services can expect more favorable terms, more likely outcomes, and more sustained growth through hands-on support.”
This second fund leverages the deep understanding and lived experience of its team of operators and founder, Jesse Silva – who, earlier in his career, sold his service business for a nine-figure valuation, only to witness how traditional private equity funds can drain the entrepreneurial culture and profits out of a business in benefit of the fund. Determined to identify a better way to achieve positive outcomes faster for all parties involved, Silva and his team launched Maddix Services to offer a tested, validated, and uniquely operator-first investment model to service-based businesses. This novel approach is designed to allow entrepreneurs to capture much larger segments of their markets through strategic M&A opportunities and ongoing operational support as they scale.
“Many private equity funds lack real-world operator experience, expertise, and aligned incentives, often leading to suboptimal results,” said Silva. “This can look like an unwillingness to be in the weeds or a lack of wherewithal to weather the ‘unsexy’ storms of scaling a business. Our team understands the heavy weight of trying to make payroll when funds are tight and feeling broke when in growth mode, because we’ve all lived through it ourselves. That shared experience, coupled with our expertise in corporate M&A and service-based businesses, has armed us with the insights necessary to help the companies in our portfolio successfully scale and exit in a fraction of the typical timeline – and, ultimately, with much higher returns.”
The launch of Maddix Services is part of a larger strategy to expand Maddix Capital's offerings and redefine existing private equity paradigms. An additional Maddix Services Partner that brings supplemental experience operating and scaling services-based businesses will be named at a future date. As part of this strategy, the fund has carefully positioned itself to cater to both institutional and individual investors, offering a range of investment options to suit different investor profiles. For more details, please visit maddixcapital.com.
ABOUT MADDIX SERVICES
Maddix Capital Services Fund II (“Maddix Services”), the second private equity fund under the Maddix Capital banner, is a target $125+ million closed-end fund that blends equity and opportunistic credit investments within service-based industries. Maddix Services is designed to disrupt the private equity space by leveraging its team’s vast experience in operating and scaling “unsexy” but profitable service-based businesses while uplifting the entrepreneurs who build them and the LPs who invest in them. Maddix Services’ core thesis aims to create incentives, deal structures, and outcomes that align founders, investors, and the fund in a mutually beneficial way. Through its focus on post-close support services, bolt-on M&A strategies, balanced leverage, expedited liquidity events, and entrepreneur-favorable earnouts, Maddix Services bridges the gap between private equity and private credit in the service-based business space. For more information, please visit maddixcapital.com/services.