RZC Investments, the personal fairness agency of Walmart heirs Tom and Steuart Walton, has paused new investments and is reconsidering the longer term construction of the fund, in line with two individuals accustomed to the matter. A spokesperson from RZC confirmed the pause.
Certainly one of RZC’s two companions, Don Huffner, left the fund final yr and is within the technique of giving up his board seats, in line with the 2 individuals, who Fortune granted anonymity as a result of they weren’t approved to talk about the agency.
RZC is a multi-stage fund primarily based in Walmart’s hometown, Bentonville, Ark., and funded by the 2 grandchildren of Walmart founder Sam Walton. Steuart Walton is a present member of the retail large’s board. The fund made each majority and minority investments, with a deal with out of doors firms. It acquired the British biking attire firm Rapha Biking Membership in 2017 for reportedly round $260 million, and made minority investments within the biking GPS firm Wahoo Health and the American bicycle firm Allied Cycle Works.
A spokesperson for the fund mentioned RZC had approached its investments, partly, as a strategy to convey extra buyers and operators into the Northwest Arkansas area and broader state. “That posture and dedication continues as we actively handle our present portfolio and consider the most effective construction for future funding exercise,” they mentioned.
It’s unclear precisely why RZC Investments is pausing its funding actions. Whereas RZC confirmed the fund was pausing new investments, it wouldn’t touch upon why. The out of doors business—and significantly the biking business—has been battered by tariffs and declining gross sales in recent times. Rapha has posted losses annually since RZC acquired the corporate in 2017. The bicycle firm Allied was one of some U.S. firms to fabricate its bicycle frames within the U.S., however it introduced it was transferring future manufacturing to Asia not lengthy earlier than President Trump introduced widespread tariffs.
RZC has made different investments, too, together with in Acres, a Fayetteville, Ark.-based land knowledge and mapping startup that offered the brokerage a part of its enterprise final summer season.
Matt Tarver, RZC’s different accomplice, continues to supervise the RZC portfolio, governance, and funding relationships.
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