Private Equity's New Blueprint for the American Roof

WASHINGTON, DC – June 25, 2026 – In a move that signals intensifying private equity interest in essential home services, Awani Capital Management today announced the recapitalization of two major residential roofing companies, NewHaus Construction and Universal Roofing & Construction. The transaction merges the two California-based firms into a single, formidable platform focused on the cash-pay retail market in California and Texas, creating a significant new player in a historically fragmented industry.

While financial terms were not disclosed, the strategic intent is clear: to build a scaled leader in the non-discretionary residential repair and replacement (R&R) sector. The newly formed entity, headquartered in Los Angeles County, will leverage the combined operational footprint of NewHaus and Universal across the Los Angeles, Bay Area, and San Diego markets, as well as NewHaus's existing presence in Dallas and Houston. This consolidation is a classic private equity play, aimed at capturing efficiencies and market share in an industry buoyed by powerful long-term trends.

A Calculated Bet on Aging Infrastructure

Awani Capital's investment is not a speculative venture but a calculated move grounded in solid market fundamentals. The U.S. residential roofing market, valued at an estimated $32.5 billion in 2026, is propelled by a powerful and non-cyclical demand driver: America's aging housing stock. With re-roofing and replacement activities accounting for over 60% of industry revenue, the need for essential R&R services is constant.

"The residential roofing sector benefits from the long-term secular demand driver of aging U.S. housing stock," said Daphne Dufresne, Founder and Managing Partner at Awani, who will join the new company's Board of Directors. This sentiment underscores the core of the investment thesis. As homes age, roofs inevitably fail, creating a resilient and predictable stream of business.

Awani, a firm launched in 2024 by Dufresne, a seasoned executive with over two decades of experience at firms like GenNx360 and RLJ Equity Partners, specializes in exactly these kinds of opportunities. The firm's strategy, backed by a reported $269 million in assets, focuses on control investments in fragmented but essential business and industrial services. This roofing platform fits squarely within its thesis of building regional and national leaders through consolidation.

"The Company operates in a highly attractive segment of the roofing sector, delivering critical R&R services to homeowners," noted Nigel Howard, Partner at Awani, who will step in as Chairman of the Board. By combining two established operators, Awani is creating a platform with the scale to professionalize service delivery, standardize quality, and optimize supply chains in ways smaller, independent contractors cannot.

The Cash-Pay Advantage: Sidestepping Insurance

A particularly telling growth signal is the platform's explicit business model: a 100% retail, cash-pay focus with no insurance exposure. This is a strategic pivot away from the often cumbersome and lower-margin work associated with insurance claims, which dominate the storm-damage segment of the industry. While this approach narrows the addressable market, it offers compelling advantages that are highly attractive to a private equity owner.

By dealing directly with homeowners, the company can achieve healthier profit margins, faster payment cycles, and vastly reduced administrative overhead. This model fosters a direct-to-consumer relationship where the focus is on value, quality, and service rather than navigating the bureaucracy of insurance adjusters. The challenge, however, is overcoming the high upfront cost of a new roof for the average homeowner.

The new platform appears well-prepared for this. NewHaus Construction already had a robust consumer financing program, offering options like zero-down, 0% interest loans. This capability will be critical for the combined entity, making large-ticket, out-of-pocket projects accessible to a wider range of customers and serving as a powerful tool for customer acquisition.

This cash-only strategy allows the company to differentiate itself through a "premium, white-glove service model," as described in the announcement. With 90% of revenue coming from roofing and 10% from ancillary services like gutters, siding, and solar, the platform can offer a comprehensive, high-touch solution for homeowners willing to invest directly in their properties.

Forging a Multi-State Powerhouse

The merger brings together two well-regarded, albeit distinct, operators. Universal Roofing & Construction, based in Glendale, CA, brings over two decades of experience in both residential and commercial roofing across Southern California, along with a wide array of ancillary home improvement services. NewHaus Construction, headquartered in Burbank, CA, has established a strong presence not only in California but also in the key Texas markets of Dallas and Houston, supported by its savvy consumer financing model.

The founders of both companies expressed optimism about the partnership, highlighting a shared culture of customer service and operational quality. "The NewHaus and Universal teams share a common belief in providing homeowners with a superior re-roofing experience," said Art Simonian of NewHaus. His partner, Mike Gabikyan, added, "We are excited to partner with Awani as we continue building upon our strong foundation and expand into new markets."

This sentiment was echoed by Armen Ter-Petrosyan of Universal. "Awani shares our commitment to customer service, operational excellence, and supporting our employees, and we believe this partnership positions the Company for continued long-term success," he stated. The integration of Universal's deep operational history with NewHaus's modern, finance-driven customer acquisition model creates a powerful foundation for the new platform.

The Road to National Dominance

This transaction is not an end point but a beginning. Awani Capital has made it clear that this platform is the cornerstone of a much larger ambition. The firm is now "actively seeking to partner with additional residential roofing businesses" that fit its retail cash-pay model. This is a public declaration of a roll-up strategy, signaling to smaller operators across the country that Awani is looking to acquire and expand.

"We look forward to working alongside the founders and management team in its next phase of growth to build a leading national retail-focused residential roofing platform," said Howard. This vision of national leadership will require navigating significant challenges, including the persistent labor shortages that plague the construction trades and the complexities of integrating diverse company cultures and systems under a single operational framework.

However, Awani's leadership team brings a deep well of experience in executing such strategies. Dufresne's track record includes completing 31 add-on acquisitions in a previous role, demonstrating a practiced hand in post-acquisition integration and value creation. With Awani's capital and strategic oversight, the newly formed roofing company is well-positioned to accelerate its growth, not just within California and Texas, but potentially across the nation, reshaping the competitive landscape for residential services one roof at a time.