"RZC Investments, the private equity firm of Walmart heirs Tom and Steuart Walton, has paused new investments and is reconsidering the future structure of the fund, according to two people familiar with the matter. A spokesperson from RZC confirmed the pause. One of RZC's two partners, Don Huffner, left the fund last year and is in the process of giving up his board seats, according to the two people, who Fortune granted anonymity because they weren't authorized to speak about the firm."
"RZC is a multi-stage fund based in Walmart's hometown, Bentonville, Ark., and funded by the two grandchildren of Walmart founder Sam Walton. Steuart Walton is a current member of the retail giant's board. The fund made both majority and minority investments, with a focus on outdoor companies. It acquired the British cycling apparel company Rapha Cycling Club in 2017 for reportedly around $260 million, and made minority investments in the cycling GPS company Wahoo Fitness and the American bicycle company Allied Cycle Works."
"It's unclear exactly why RZC Investments is pausing its investment activities. While RZC confirmed the fund was pausing new investments, it wouldn't comment on why. The outdoor industry-and particularly the cycling industry-has been battered by tariffs and declining sales in recent years. Rapha has posted losses each year since RZC acquired the company in 2017. The bicycle company Allied was one of a few U.S. companies to manufacture its bicycle frames in the U.S., but it announced it was moving future manufacturing to Asia."
RZC Investments has paused new investments and is reevaluating the fund's future structure while actively managing its current portfolio. One partner, Don Huffner, left last year and is in the process of relinquishing board seats. The multi-stage fund is based in Bentonville, Arkansas, and is funded by Tom and Steuart Walton, with Steuart serving on Walmart's board. RZC focuses on outdoor companies, making majority and minority investments including Rapha, Wahoo Fitness, and Allied Cycle Works. The firm aims to bring investors and operators to Northwest Arkansas. The pause comes amid industry headwinds such as tariffs, declining sales, Rapha's ongoing losses, and Allied's move of manufacturing to Asia.
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