L Squared Capital Acquires Functional Devices To Expand Building Automation Platform

The acquisition reflects L Squared's investment focus on building automation and controls, a market supported by long-term tailwinds.

Published on Feb. 25, 2026

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L Squared Capital Partners, a private equity firm, has announced the acquisition of Functional Devices, a provider of field devices for building automation and emergency lighting systems. Functional Devices is known for its RIB (Relay in a Box) brand, which has become an industry standard for relays, current sensors, power supplies, and other power control products used across commercial buildings, data centers, healthcare facilities, and other high-performance environments. The acquisition is part of L Squared's strategy to build scaled platforms around established brands with mission-critical products and loyal customer bases, while making incremental investments in product development and strategic acquisitions.

Why it matters

The building automation and controls market is supported by long-term tailwinds, including energy-efficiency requirements, electrification, growing system complexity, and accelerating data center infrastructure investment. Functional Devices' products play a central role in HVAC, lighting, and building management systems, where reliability and uptime are critical. As buildings become more intelligent and data-driven, demand for dependable control and relay solutions continues to increase.

The details

L Squared plans to support Functional Devices through continued investment in product innovation, commercial expansion, and add-on acquisitions. The firm is evaluating a robust pipeline of opportunities and is actively seeking complementary businesses within the building automation peripheral components market to deepen its position in core categories and expand into adjacent offerings.

  • L Squared Capital Partners announced the acquisition on February 25, 2026.

The players

L Squared Capital Partners

A private equity firm with more than $2 billion in assets under management, headquartered in Newport Beach, California. The firm focuses on long-term investments in growth companies across education technology, technology-enabled services and software, and industrial technology and services.

Functional Devices

A provider of field devices for building automation and emergency lighting systems, headquartered in Sharpsville, Indiana. The company is best known for its RIB (Relay in a Box) brand, which has become an industry standard for relays, current sensors, power supplies, and other power control products.

Mark Fernandes

The President and CEO of Functional Devices, who invested alongside L Squared in the transaction and will continue to lead the business.

Sean Barrette

The Managing Partner at L Squared, who expressed excitement about partnering with the Functional Devices team and seeing the company as a market standard within building automation systems.

Tyler Huez

A Partner at L Squared, who stated that Functional Devices fits squarely within L Squared's core investment strategy, combining a trusted brand, critical products, and a strong operating foundation.

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What they’re saying

“Partnering with L Squared is a significant milestone for Functional Devices. We share a long-term vision for the business that is grounded in delivering dependable, high-quality products and investing in the people who make that possible. L Squared's belief in our team, our new product development engine, and our acquisition strategy make this a natural fit. We are excited to build on our momentum, pursue strategic acquisitions, and create even greater value for our customers, employees, and the buildings and communities we serve.”

— Mark Fernandes, President and CEO of Functional Devices (pulse2.com)

“We are excited to partner with the FDI team, who have established themselves as a market standard within building automation systems. Building automation has been a core area of focus for L Squared, and we see a highly fragmented landscape of mission-critical businesses that can benefit from the scale, resources, and brand strength of the Functional Devices platform.”

— Sean Barrette, Managing Partner at L Squared (pulse2.com)

“FDI fits squarely within L Squared's core investment strategy, combining a trusted brand, critical products, and a strong operating foundation. We look forward to applying our repeatable value-creation playbook alongside the FDI team to drive the next phase of growth.”

— Tyler Huez, Partner at L Squared (pulse2.com)

What’s next

L Squared plans to support Functional Devices through continued investment in product innovation, commercial expansion, and add-on acquisitions, as the firm evaluates a robust pipeline of opportunities and actively seeks complementary businesses within the building automation peripheral components market.

The takeaway

The acquisition of Functional Devices by L Squared Capital Partners reflects the growing importance of building automation and controls, as the industry faces long-term tailwinds such as energy efficiency, electrification, and the increasing complexity of building systems. The partnership aims to leverage Functional Devices' trusted brand, critical products, and strong operating foundation to drive the next phase of growth in this dynamic market.