UK Industrial Search Fund

Building enduring businesses within the UK's critical infrastructure.

RN Capital is a self-funded search vehicle, led personally by Dr. Sridhar Narayanan, to acquire and operate a founder-led UK industrial business — and grow it into the nucleus of a lasting regional or national platform.

Built for Equity co-investors Lenders Business owners & sellers Advisors & agents
Why RN Capital exists

Purpose, principle, and how we measure success.

The four ideas underneath every decision RN Capital makes — before a single deal is on the table.

P

Purpose

To build enduring businesses that enable the safe, efficient and resilient functioning of modern society.

I

Investment Philosophy

We invest in mission-critical capabilities whose long-term demand is driven by enduring societal needs rather than short-term economic cycles.

G

Growth Philosophy

We create value through operational excellence, disciplined capital allocation, and adjacent acquisitions that strengthen the whole ecosystem.

L

Legacy

Success is measured not only by financial returns, but by the long-term resilience we create for customers, employees, communities and future generations.

The Searcher

Dr. Sridhar Narayanan

SN

Dr. Sridhar Narayanan

Founder & Searcher, RN Capital

Twenty years operating at the intersection of complex engineering systems and large-scale commercial execution, across the power, energy, and industrial infrastructure markets.

I am launching this search to acquire and personally lead a business within the invisible layer of critical physical infrastructure the modern economy relies on to operate with absolute reliability.

Deep Technical Fluency

A Ph.D. in Electrical Engineering and experience as a Global Chief Engineer give me command of the underlying physics and technical complexity of mission-critical assets — and let me earn the trust of technicians, engineers, and blue-collar operational teams instantly.

Proven Value Creation Toolkit

Directly managed P&Ls up to $1.5B, delivering a 25% year-over-year increase in profitability and scaling a new business unit from zero to $50M. Fluent in the exact operational levers that scale a small business: CRM implementation, data-driven pricing, sales incentive architecture, and channel optimization.

Supply Chain & Operational Resilience

Maintained >90% first-fill rates through periods of massive global supply chain disruption — the discipline to insulate a business from macroeconomic shocks and protect delivery for customers.

My goal: find a founder-led business with a strong reputation in the water, power, cooling, or testing ecosystems — and apply a corporate execution playbook to turn it into an enduring regional or national champion.
Investment Thesis

The UK is not our first market — it is the complete investment thesis.

UK industrial businesses generating £5–30m revenue, with strong engineering IP but weak commercial execution, in resilient sectors — power infrastructure, electrification, industrial automation, critical infrastructure. Disciplined commercial transformation, selective operational improvement, and adjacent bolt-on acquisitions create disproportionate enterprise value.

We assume geopolitical fragmentation, trade barriers, supply chain disruption, and regulatory divergence are permanent, not temporary. We build businesses that compound despite them, not because they disappear. We are not seeking a company that survives uncertainty; we are seeking one that becomes more valuable because uncertainty exists.

Principles
  • 1
    Domestic SufficiencyMust compound for decades on the UK market alone. International growth is welcome, never assumed.
  • 2
    AntifragilityNot resilience, which merely survives shocks. The business should strengthen from energy volatility, labour shortages, regulatory change, infrastructure investment, reshoring, technological disruption, and geopolitical fragmentation.
  • 3
    Ecosystem PotentialThe acquisition is a nucleus, not an endpoint — room to add products, services, technology, adjacent acquisitions, recurring revenue, data, financing, or software.
Screening Tests
  • 1
    UK SufficiencyWould I still buy it if I could never leave the UK?
  • 2
    AdjacencyCan I double revenue by selling more to existing customers?
  • 3
    CapabilityDoes it solve a problem that becomes more important over time?
  • 4
    AntifragilityDoes uncertainty create demand rather than destroy it?
  • 5
    Standalone HealthIs the business already profitable and operationally self-sufficient, or does it need to be rescued before it can compound?
What We're Looking For

Sector focus & target criteria.

A ranked list of the ecosystems we know best, and the financial profile a target needs to fit our thesis.

Sector Focus

Ranked by operator advantage and adjacency opportunity

LanePriorityWhy
Critical power / electrical infrastructure1Maximum operator advantage
Industrial automation / controls2Technical + commercial + adjacency opportunity
Testing / inspection / asset integrity3Recurring / compliance revenue can improve EBITDA quality
Water / wastewater engineering4Essential infrastructure, fragmented ecosystem
Industrial cooling / thermal systems5Strong structural demand, particularly critical infrastructure

Target Criteria

Core range, with stretch flexibility for the right business

CriterionCore TargetStretch
Normalized EBITDA£1.5M – £5M£1M – £6M
Preferred entry multiple3 – 4×Up to 5×
Implied core EV£4.5M – £20M~£5M – £25M
EBITDA marginPreferably >10–12%Case dependent
Employees<200Hard-ish preference
EBITDA positiveYesYes
Cash conversionStrong / understandableMust be fixable
GeographyUKUK
The Ask

A self-funded search, with a deal-specific capital structure.

RN Capital is a self-funded search — no capital raised for the search phase itself. £100k of personal capital funds sourcing, diligence, travel, and advisor fees over an 18-month search window, with no salary draw against it.

This structure keeps 100% search autonomy with the searcher, minimizes dilution, and asks equity partners to underwrite a specific deal rather than an open-ended search.

Target capital structure at acquisition
Senior debt — ~60% Seller financing — 20–25% Co-invest equity — 15–20%
  • ~60% senior debt — up to X× EBITDA, lender-dependent (e.g. ThinCats or a UK bank).
  • 20–25% seller financing — split between a 5-year amortizing note and a second note (5-year, converting to 10-year on defined terms).
  • 15–20% equity — funded by co-investment partners at the point of acquisition. No capital called until a target is under LOI.
Let's Talk

Whoever you are, there's a reason to connect.

Equity Co-Investors

Underwrite a specific deal, not an open-ended search. Co-invest at the point of acquisition, alongside a searcher who has already funded diligence personally.

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Lenders

Senior debt sits at the base of every deal RN Capital structures — typically ~60% of the capital stack against a profitable, cash-generative UK industrial business.

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Business Owners & Sellers

If you've built a strong reputation in power, water, cooling, testing, or industrial automation and are thinking about what's next, let's have a conversation — in confidence.

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Advisors & Agents

Brokers, M&A advisors, and intermediaries with UK lower-middle-market industrial mandates — RN Capital moves quickly and diligences seriously.

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Contact

Start a conversation.

Tell me a little about who you are and what you're looking to discuss. I read every message personally and respond directly.

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