New State Capital Partners has taken a majority stake in Harrell-Fish Inc. (HFI) — a commercial and institutional HVAC and plumbing company — with HFI's leadership team retaining ownership and remaining in place, according to Plumbing & Mechanical magazine's 2026 coverage. The partnership aims to expand the company's HVAC and plumbing capabilities, pursue strategic acquisitions, and build on its position in key commercial and institutional markets.

The Harrell-Fish transaction follows the now-standard structure for PE investment in commercial HVAC and mechanical services: the institutional investor takes a majority stake to provide growth capital and strategic resources, while the existing management team retains meaningful ownership (typically 20-40%) and operational control. This structure aligns incentives — HFI's leadership team benefits from the future value their continued operational excellence creates, while the PE sponsor benefits from management's market relationships and technical expertise.

Who Is Harrell-Fish Inc?

Harrell-Fish Inc. is a commercial and institutional HVAC and plumbing service and construction company operating in the Southeast United States. The company has built its position in commercial and institutional markets — hospitals, universities, government facilities, and commercial buildings — where the technical complexity and relationship depth required creates more defensible market positions than residential services.

The institutional market focus is strategically significant: hospitals and universities are the most stable customers in the commercial mechanical services market. Their HVAC maintenance budgets are driven by regulatory requirements and patient or student safety standards rather than discretionary spending — which makes the revenue stream more durable through economic cycles than commercially-discretionary markets.

New State Capital Partners' majority investment in Harrell-Fish Inc. — with HFI's leadership team retaining ownership and staying in place — is a standard PE-minority structure designed to fund HVAC and plumbing capability expansion and strategic acquisitions in key commercial and institutional markets in the Southeast US.

The Investment Thesis for Commercial Institutional HVAC

New State Capital Partners' investment in HFI reflects a specific investment thesis that is becoming increasingly common in commercial HVAC: institutional facilities — hospitals, universities, government buildings — require HVAC services that are non-discretionary, technically demanding, and relationship-based. The contractor who is trusted to maintain a hospital's HVAC system has a defensible revenue stream that pure residential contractors cannot access.

• Non-discretionary demand: Hospital and university HVAC maintenance is required by regulatory standards and facility operation requirements — it cannot be deferred the way residential replacement can be.

• Technical barrier to entry: Institutional HVAC — operating room pressure relationships, pharmaceutical clean room standards, research laboratory environmental controls — requires specialised expertise that limits the competitive field.

• Long-term contract structures: Institutional customers typically award multi-year service agreements that provide predictable recurring revenue — exactly the revenue quality that PE investors target.

Frequently Asked Questions

What is Harrell-Fish Inc?

Harrell-Fish Inc. (HFI) is a commercial and institutional HVAC and plumbing company serving hospital, university, government, and commercial facility customers in the Southeast US. New State Capital Partners acquired a majority stake in 2026, with HFI's leadership team retaining ownership and remaining in operational control.

What is New State Capital Partners?

New State Capital Partners is a private equity firm that acquired a majority stake in Harrell-Fish Inc. in 2026 to support the company's HVAC and plumbing capability expansion and strategic acquisition strategy in commercial and institutional markets.