Key Takeaways
- • Audax Private Equity completed the sale of Thermogenics, a North American boiler lifecycle services provider, to Morgan Stanley Capital Partners (MSCP), marking the first realization from its debut Origins lower middle market strategy.
- • The new MSCP investment closed on June 10, 2025; Audax announced the completion on June 18, 2025, with terms not disclosed.
- • The Thermogenics exit came almost three years to the day after Audax closed the acquisition, per Audax management.
- • Under Audax ownership, Thermogenics' top- and bottom-line performance more than doubled, and the company completed six add-on acquisitions.
- • The investment was made through the $965 million Origins Fund, which closed above target and deploys capital across the North American lower middle market.
Summary
Audax Private Equity has completed the sale of Thermogenics, a provider of industrial and commercial boiler service and maintenance across North America, to Morgan Stanley Capital Partners ("MSCP"), according to a Business Wire announcement. MSCP's new investment in the company closed on June 10, 2025. Terms of the transaction were not disclosed.
Thermogenics is the first investment made through Audax's Origins strategy and represents the strategy's first realization. Greg Smith, a Managing Director at Audax Private Equity, said the exit came almost three years to the day after Audax closed the acquisition, and cited the investment as evidence of the firm's Buy & Build approach for lower middle market companies. The sale comes less than three years after Audax closed its inaugural Origins fund.
Based in Aurora, Ontario, with more than 250 employees, Thermogenics provides boiler lifecycle solutions to commercial and industrial customers. During Audax's ownership, the company expanded its executive team, upgraded its IT infrastructure including a new ERP system, and completed and integrated six acquisitions that broadened its U.S. geographic footprint. Audax stated that Thermogenics' top- and bottom-line performance more than doubled over the hold period. Ross Garland, Chief Executive Officer of Thermogenics, credited Audax's Strategic Resources Group, business development and sourcing function, and investment team with positioning the business for growth.
The investment was made through Audax's debut Origins Fund, announced in 2023, which closed above target at $965 million including GP co-investment vehicles. Don Bramley, a Partner at Audax, said the firm has completed more than 60 platform investments in Industrial Services & Technologies across its Flagship and Origins strategies, deploying over $3 billion. Jay Mitchell, a Partner at Audax, said the Origins strategy was launched in 2022 to extend the firm's Buy & Build approach to lower middle market companies.
Solomon Partners served as sell-side lead advisor and KeyBanc Capital Markets as co-advisor. Kirkland & Ellis LLP represented the sellers, and Debevoise & Plimpton LLP represented MSCP. Audax, headquartered in Boston, manages approximately $19 billion in assets under management as of March 2025 across its Flagship, Origins and Strategic Capital strategies.
Thermogenics is the first investment made through Audax's Origins strategy and represents the strategy's first realization. Greg Smith, a Managing Director at Audax Private Equity, said the exit came almost three years to the day after Audax closed the acquisition, and cited the investment as evidence of the firm's Buy & Build approach for lower middle market companies. The sale comes less than three years after Audax closed its inaugural Origins fund.
Based in Aurora, Ontario, with more than 250 employees, Thermogenics provides boiler lifecycle solutions to commercial and industrial customers. During Audax's ownership, the company expanded its executive team, upgraded its IT infrastructure including a new ERP system, and completed and integrated six acquisitions that broadened its U.S. geographic footprint. Audax stated that Thermogenics' top- and bottom-line performance more than doubled over the hold period. Ross Garland, Chief Executive Officer of Thermogenics, credited Audax's Strategic Resources Group, business development and sourcing function, and investment team with positioning the business for growth.
The investment was made through Audax's debut Origins Fund, announced in 2023, which closed above target at $965 million including GP co-investment vehicles. Don Bramley, a Partner at Audax, said the firm has completed more than 60 platform investments in Industrial Services & Technologies across its Flagship and Origins strategies, deploying over $3 billion. Jay Mitchell, a Partner at Audax, said the Origins strategy was launched in 2022 to extend the firm's Buy & Build approach to lower middle market companies.
Solomon Partners served as sell-side lead advisor and KeyBanc Capital Markets as co-advisor. Kirkland & Ellis LLP represented the sellers, and Debevoise & Plimpton LLP represented MSCP. Audax, headquartered in Boston, manages approximately $19 billion in assets under management as of March 2025 across its Flagship, Origins and Strategic Capital strategies.
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