RLJ Equity Partners
RLJ Equity Partners is a Bethesda, Maryland-based middle-market private equity firm founded in 2006 by Robert L. Johnson, managing approximately $440 million to invest $10-30 million in North American business services, industrial services, and value-added manufacturing companies with $25-100 million enterprise values.
- Company typePrivate
- Founded2006
- HeadquartersBethesda, United States
- Headcount1–10
- GTM typeB2B
- OfferingServices
What RLJ Equity Partners does
RLJ Equity Partners is a middle-market private equity firm founded in 2006 by Robert L. Johnson, the entrepreneur who founded Black Entertainment Television (BET) and sold it to Viacom for approximately $3 billion in 2001. Headquartered in Bethesda, Maryland, the firm manages approximately $440 million in capital across two funds (Fund I closed at $230M in June 2009; Fund II represents the current AUM) and operates with a lean investment team of seven professionals. The firm invests in North American companies with enterprise values between $25 million and $100 million, targeting equity investments of $10-30 million per transaction in companies generating EBITDA greater than $4 million with margins above 10%. Its three core sector pillars are Business Services, Industrial Services, and Value-added Manufacturing, with the portfolio spanning HVACR/plumbing services (Flow Service Partners), ServiceNow consulting (Crossfuze), association services (Naylor), BPO/customer experience (ERC), education (Ogle School), industrial logistics (Immediaship), entertainment analytics (MarketCast), and specialty manufacturing (Fleischmann's Vinegar, LAI International).
The firm makes money through two standard private equity revenue streams: recurring management fees (typically 1.5-2% of committed capital) charged annually during the investment period, and carried interest (typically 20%) on profits from successful portfolio exits. Go-to-market is relationship-driven and proprietary, relying on Robert L. Johnson's personal Fortune 500 executive network, the RLJ Executive Network of former Fortune 500 C-suite advisors, and direct outreach to founders and management teams seeking non-auction partnership deals. The firm was founded in strategic alliance with The Carlyle Group, which holds a 20% equity stake in the general partnership and provides co-investment and deal flow support. Differentiated value-add includes MBE (Minority Business Enterprise) certification support for portfolio companies seeking access to Fortune 1000 supplier diversity programs. Underlying technology is limited to standard SEC-registered investment adviser infrastructure (Investor VDR, professional website); there is no proprietary technology platform, product, or AI capability.
RLJ Equity Partners firmographics
Firmographics- Name
- RLJ Equity Partners
- Legal name
- RLJ Equity Partners, LLC
- Website
- https://rljequitypartners.com
- Company type
- Private
- Founded year
- 2006
- Operating status
- Operating
- Headcount range
- 1–10 employees
- Short description
- RLJ Equity Partners is a Bethesda, Maryland-based middle-market private equity firm founded in 2006 by Robert L. Johnson, managing approximately $440 million to invest $10-30 million in North American business services, industrial services, and value-added manufacturing companies with $25-100 million enterprise values.
- Ownership category
- akta.pro rank
RLJ Equity Partners industry classification
Industry- Product category
- Private Equity Investment Management
- NAICS
- Portfolio Management and Investment Advice (523940), All Other Financial Investment Activities (52399)
- SIC
- Investment Advice (6282)
- akta.pro primary industry
- Multi-Sector / Generalist Growth Equity (FSANACAO)
- akta.pro secondary industry
- Industrials & Manufacturing Growth Equity (FSANACAF)
Keywords
Where RLJ Equity Partners is headquartered
LocationHeadquarters
- HQ city
- Bethesda
- HQ country
- United States
- HQ region
- North America
Offices1 record
Markets served
RLJ Equity Partners business model
Business model- GTM type
- B2B
- Offering type
- Services
- Cost components
- Personnel, Operations, Marketing or Sales, Technology or R&D, Others
Revenue model
- Management Fees: Private equity management fees charged on committed capital under management, typically 1.5-2% of committed capital annually during the investment period.
- Carried Interest (Performance Fees): RLJ earns carried interest (typically 20%) on profits from successful portfolio company exits, aligning investor and GP interests. This is the primary driver of fund returns and GP economics.
Pricing tiers
| Model | Billing | Price |
|---|---|---|
| Other | Multi-year contract | Control investments in middle-market companies |
Go-to-market motion1 record
Distribution channels2 records
Marketing channels5 records
RLJ Equity Partners product offering
Product offeringCore offering
RLJ Equity Partners is a middle-market private equity firm that invests equity capital in North American companies with enterprise valuations between $25 million and $100 million (EBITDA greater than $4M and margins greater than 10%), executing control buyouts, leveraged recapitalizations, growth equity infusions, and add-on acquisitions. The firm focuses on three core sectors — Business Services, Industrial Services, and Value-added Manufacturing — and partners with existing management teams who invest alongside RLJ. Capital is deployed through Fund I ($230M, closed 2009) and Fund II (~$440M AUM), and the firm provides operational support, add-on acquisition capital, and access to Robert L. Johnson's Fortune 500 executive network.
Product overview
RLJ Equity Partners is a middle-market private equity firm offering two distinct fund products (Fund I with $230M and Fund II with approximately $440M in capital under management) that provide investment capital for traditional buyouts, leveraged recapitalizations, growth equity infusions, and add-on acquisitions. The funds primarily invest in North American companies with enterprise valuations between $25 million and $100 million, focusing on Business Services, Industrial Services, and Value-added Manufacturing sectors. The portfolio consists of current and exited investments across diverse industries including HVACR services, association services, customer experience management, education, retail, logistics, and manufacturing.
Differentiator
Problem solved
Functional benefit
Products and services
- Fund I RLJ Equity Partners' first private equity fund with $230 million in committed capital, deploying control equity into middle-market leveraged buyouts, recapitalizations, and growth equity investments in North American companies.
- Fund II RLJ Equity Partners' second private equity fund with approximately $440 million in capital under management, focused on control investments in North American middle-market companies with enterprise values of $25M-$100M in Business Services, Industrial Services, and Value-added Manufacturing.
- Flow Service Partners Portfolio company providing commercial HVACR (heating, ventilation, air conditioning, refrigeration) and plumbing services across the Midwest, Southeast, and Mid-Atlantic U.S., with operations in Delaware, Florida, Indiana, Kentucky, Maryland, and Pennsylvania. Exited November 2024.
- Crossfuze Portfolio company providing ServiceNow consulting, advisory, implementation, and support services for digital transformation; an award-winning global ServiceNow Elite partner with Certified Master Architects on staff.
- Naylor Association Solutions Portfolio company providing end-to-end B2B marketing, engagement, and outsourced business and communications services for the North American association marketplace, serving over 450 associations since 1969.
- Enhanced Resource Centers (ERC) Portfolio company providing customer experience management solutions and contact center-based business process outsourcing services to blue-chip clients in financial services, media, retail, and telecommunications.
- Ogle School Portfolio company providing cosmetology and esthetics career education in Texas with nine campuses in Dallas, Houston, and San Antonio offering part-time and full-time programs.
- Growers House Portfolio company operating an online retail business for hydroponic cultivation supplies and equipment, plus the Growers Network web forum and CannaCribs YouTube series.
- Immediaship Portfolio company operating an asset-light third-party logistics freight brokerage business serving the B2B industrial market.
- MarketCast Portfolio company providing proprietary marketing analytics, materials testing, and strategic insights to marketers and researchers in the global entertainment industry using quantitative and qualitative research methods.
- Native Maine Produce & Specialty Foods Portfolio company operating as the largest independent fresh foodservice distributor in Maine with over 1,500 customers and over 3,000 produce items.
- Pro-Vac Portfolio company providing environmental, infrastructure, and municipal services in the Pacific Northwest including hydro-excavation, storm and sewer maintenance, pipe/line jetting, industrial vacuum cleaning, CCTV inspection, and commercial sweeping.
- Fleischmann's Vinegar Company Portfolio company operating as the largest manufacturer of food-grade industrial vinegar in North America, with seven manufacturing facilities serving packaged food manufacturers and food retailers.
- LAI International Portfolio company manufacturing precision engineered components and assemblies for aerospace & defense, healthcare, and power generation industries using waterjet, laser, and electrical discharge machining.
- EnviroVac Portfolio company providing industrial cleaning and maintenance services focused on routine plant maintenance and outages, using high-pressure washing and vacuum equipment for pulp, paper, chemical, steel, oil and gas, and power industries.
- RLJ Thompson Trucking Portfolio company operating as a regional trucking company serving industrial and municipal customers including aggregates companies, industrial recyclers, and waste collection companies in Virginia and northern North Carolina with a fleet of over 150 tractors, 100 dump trucks, and 500 trailers.
- Media Source Portfolio company providing information content and expert advice to K-12, public, and academic librarians through Collection Development (Junior Library Guild) and Information Business (Library Journal, School Library Journal, The Horn Book).
- Phase One Consulting Group Portfolio company providing technology-oriented consulting and solution services for the public sector, specializing in IT planning, agile development, and Platform-as-a-Service solutions.
- CVC Brasil Portfolio company operating as the largest tour operator in Latin America with primary focus in Brazil, organizing flights, cruises, hotels, and receptive services into vacation packages sold through over 400 retail locations.
- Tok & Stok Past portfolio company operating as the leading specialty furniture and décor retailer in Brazil, selling home products through 35 stores in 19 cities.
- J&J Transport Past portfolio company operating as a logistics provider specializing in transport of containerized and dry bulk cargoes throughout East and Southern Africa along the Beira corridor, linking Zambia, Malawi, Zimbabwe, and DRC to the Port of Beira in Mozambique.
Quantifiable outcome
- Flow Service Partners revenue more than tripled from 2021 to 2024 through organic growth and strategic acquisitions
- +2 more outcomes
Companies that use RLJ Equity Partners
Customer profileNamed customers8 records
Segments5 records
Ideal customer profiles3 records
RLJ Equity Partners technology and API
TechnologyTechnology focussed No
API detail
- Has API
- No
- API docs
- API detail
Core technology
AI maturity
App detail
RLJ Equity Partners partnerships and signals
Strategic signalPartnerships
One partnership is on record.
- CVC Brasil Operadora e Agência de Viagens S.A.minorRLJ made a minority co-investment in Carlyle's buyout of CVC, Brazil's largest tour operator, in December 2009. CVC organizes flights, cruises, hotels, and receptive services into vacation packages sold through over 400 retail locations. RLJ participated as co-investor alongside Carlyle's $13.7B flagship fund and South America Buyout Fund.
Scale indicators3 records
Recent moves6 records
Expansion highlights5 records
RLJ Equity Partners competitors and assessment
Company assessmentBroad incumbents
- The Carlyle Group: Global private equity firm that holds a 20% equity stake in RLJ Equity Partners and has provided co-investment capacity since 2006. Comparable as a PE manager but with vastly larger AUM and broader sector coverage.
- Thomas H. Lee Partners: Established middle-market PE firm with broader sector coverage and larger AUM than RLJ. Comparable as a long-tenured middle-market buyout specialist with similar holding periods and value creation approach.
- Bain Capital: Large diversified PE firm with middle-market buyout activities overlapping RLJ's business services and industrial focus, though at much greater scale and broader portfolio.
Direct peers
- Sterling Group: Houston-based middle-market PE firm focused on industrial services, distribution, and manufacturing businesses. Directly comparable in sector focus and operational value-add approach to lower middle-market industrial companies.
- American Industrial Partners: Middle-market PE firm focused on industrial businesses including industrial services, manufacturing, and aerospace/defense components—closely overlapping with RLJ's Industrial Services and Value-added Manufacturing verticals.
- Flexpoint Ford: Middle-market PE firm focused on financial services and business services companies. Comparable in fund size and lower middle-market deal profile.
- Madison Dearborn Partners: Chicago-based middle-market PE firm with similar focus on buyouts and growth equity in U.S. companies. Comparable investment size range and sector mix (business services, industrial) make it a direct peer.
- Garnett & Helfrich Capital: Diversified middle-market PE firm investing across business services, industrial, and consumer sectors at similar enterprise value ranges. Directly comparable as a generalist middle-market PE competitor.
- NewSpring Capital: Middle-market PE firm focused on business services and specialty industrial companies in the lower middle market. Comparable in fund size, sector focus, and relationship-driven deal sourcing approach.
- Court Square Capital Partners: Middle-market PE firm investing in business services and industrial sectors at similar enterprise value ranges ($50M-$500M). Directly comparable in deal size and sector focus.
Market position
Strengths4 records
Weaknesses4 records
Competitive moat4 records
Key risks5 records
Key highlights6 records
Customer concentration
RLJ Equity Partners social profiles
Digital presenceRLJ Equity Partners financial estimates
Financial estimateRevenue estimate
Valuation estimate
RLJ Equity Partners leadership team
Management profileNumber of profiles
Profiles7 records
RLJ Equity Partners subsidiaries and ownership
Company hierarchySubsidiaries8 records
RLJ Equity Partners funding detail
Funding detailFunding overview
Funding rounds
Investors
Funding detail is available on the Subscription and Enterprise plan.Contact sales →
RLJ Equity Partners M&A and investment
M&A and investmentM&A12 records
Investments2 records
M&A and investment is available on the Subscription and Enterprise plan.Contact sales →
Frequently asked questions about RLJ Equity Partners
What does RLJ Equity Partners do?
RLJ Equity Partners is a middle-market private equity firm that invests equity capital in North American companies with enterprise valuations between $25 million and $100 million (EBITDA greater than $4M and margins greater than 10%), executing control buyouts, leveraged recapitalizations, growth equity infusions, and add-on acquisitions. The firm focuses on three core sectors — Business Services, Industrial Services, and Value-added Manufacturing — and partners with existing management teams who invest alongside RLJ. Capital is deployed through Fund I ($230M, closed 2009) and Fund II (~$440M AUM), and the firm provides operational support, add-on acquisition capital, and access to Robert L. Johnson's Fortune 500 executive network.
Is RLJ Equity Partners a public or private company?
RLJ Equity Partners is a private company. It is classified as founder individual operated bootstrapped and is currently operating.
When was RLJ Equity Partners founded?
RLJ Equity Partners was founded in 2006. It employs 1 to 10 people.
Where is RLJ Equity Partners based?
RLJ Equity Partners is headquartered in Bethesda, United States, in the North America region.
How does RLJ Equity Partners make money?
Two revenue lines are on record. Management Fees are the primary driver. The others are carried Interest (Performance Fees).
Who are RLJ Equity Partners's main competitors?
Broad incumbents on record are The Carlyle Group, Thomas H. Lee Partners and Bain Capital. Direct peers are Sterling Group, American Industrial Partners, Flexpoint Ford, Madison Dearborn Partners, Garnett & Helfrich Capital, NewSpring Capital and Court Square Capital Partners.
Does RLJ Equity Partners have an API?
No public API is recorded for RLJ Equity Partners.
What industry is RLJ Equity Partners in?
RLJ Equity Partners's product category is Private Equity Investment Management. Its primary akta.pro industry code is FSANACAO, Multi-Sector / Generalist Growth Equity, with a secondary code of FSANACAF, Industrials & Manufacturing Growth Equity. Its NAICS code is 523940 and its SIC code is 6282.