Audax Private Equity’s Origins Strategy Completes Thermogenics Exit
The first investment out of Audax’ debut lower middle market strategy now represents its first realization.
The sale comes less than three years after Audax Private Equity closed its inaugural Origins fund.
BOSTON & SAN FRANCISCO, June 18, 2025 — Audax Private Equity (“Audax”), a capital partner for middle and lower-middle market companies, announced today that it has completed the sale of Thermogenics, a provider of industrial and commercial boiler service and maintenance across North America. Morgan Stanley Capital Partners (“MSCP”) acquired Thermogenics as part of a new investment in the company that closed on June 10, 2025. Terms of the deal are not disclosed.
“Thermogenics represented our very first investment through our Origins strategy,” noted Greg Smith, a Managing Director at Audax Private Equity. “As the strategy’s first exit – almost three years to the day since we closed the acquisition – we think the investment demonstrates the impact of our Buy & Build approach to help lower middle market companies create a foundation for accelerated growth and provide management teams with the tools and resources to execute on their vision through M&A and organic value creation initiatives.”
“When we initially partnered with Audax, the scale and depth of resources stood out,” noted Ross Garland, Chief Executive Officer of Thermogenics. “Now, in hindsight, the collaboration of their Strategic Resources Group, the breadth of Audax’ business development and sourcing function, and the deep experience of the investment team, each played a critical role in positioning Thermogenics to capitalize on the opportunity set in front of the business. We’re looking forward to building on this momentum and embarking on our next phase of growth with MSCP.”
Based in Aurora, Ontario, and with over 250 employees, Thermogenics is a provider of boiler lifecycle solutions to a diverse set of commercial and industrial customers. Under Audax’ ownership, Thermogenics expanded its executive team and added key roles to facilitate growth; upgraded and enhanced its IT infrastructure, including the implementation of a new ERP system; and completed and integrated six acquisitions that expanded the company’s geographic footprint in the U.S., while enhancing its service offering. During the hold, Thermogenics’ top- and bottom-line performance more than doubled.
The investment in Thermogenics was made through Audax’ debut Origins Fund, announced in 2023, which closed above target with $965 million, inclusive of GP co-investment vehicles, to deploy across the North American lower middle market.
“Throughout our hold, we leveraged our deep experience in Industrial Services & Technologies, a sector where we have completed over 60 platform investments through our Flagship and Origins strategies and have deployed over $3 billion,” noted Don Bramley, a Partner at Audax Private Equity.
“We want to thank Ross and the entire management team at Thermogenics,” added Jay Mitchell, a Partner at Audax Private Equity. “When we launched our Origins strategy in 2022, our objective was to leverage our deep investment in our organization and extend our Buy & Build approach to lower middle market companies. Our conviction in the strategy, the investment thesis, and the management team translated into what we consider to be a tremendous outcome for Thermogenics, Audax and our investors. It’s an investment we’re proud of and believe helps to set the tone for our strategy going forward.”
Solomon Partners served as sell-side lead advisor, while KeyBanc Capital Markets served as co-advisor. Kirkland & Ellis LLP provided legal counsel to the sellers, while Debevoise & Plimpton LLP served in the same capacity to MSCP.
ABOUT THERMOGENICS:
Thermogenics is a provider of boiler lifecycle solutions in North America, offering boiler service & maintenance, equipment sales, and rental solutions for its customers’ mission critical boilers in industrial, commercial, and institutional sectors. With 24/7 factory-trained technician support and its boiler rentals solution set, Thermogenics and its affiliated brands function as a one-stop shop for its customers’ most complex steam and heating needs.
Headquartered in Aurora, ON, Thermogenics operates across North America with locations in Ottawa, ON, Cincinnati, OH, Jacksonville, FL, Orlando, FL, Sioux City, IA, West Hartford, CT, Greensboro, NC, Apache Junction, AZ and Las Vegas, NV.
ABOUT AUDAX PRIVATE EQUITY:
Headquartered in Boston, with offices in San Francisco, New York, London and Hong Kong, Audax Private Equity manages three strategies: its Flagship and Origins private equity strategies, seeking control buyouts in the core middle and lower middle markets, respectively, and its Strategic Capital strategy that provides customized equity solutions to PE-backed portfolio companies to help drive continued growth. With approximately $19 billion of assets under management as of March 2025, over 290 team members, and 100-plus investment professionals, Audax has invested in more than 175 platforms and over 1,350 add-on acquisitions since its founding in 1999. Through our disciplined Buy & Build approach, across six core industry verticals, Audax seeks to help portfolio companies execute organic and inorganic growth initiatives with the aim of fueling revenue expansion, optimizing operations, and significantly increasing equity value. For more information, visit www.audaxprivateequity.com or follow us on LinkedIn.
