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A Los Angeles-based private equity firm called RLH Equity Partners has announced an investment in Red Clay, a consultancy that assists utilities with the implementation of Oracle software.

An investment can mean multiple things in the private equity world. Often, it means an acquisition rather than the simple purchase of a company stake. RLH didn’t provide information about the terms of the transaction.

Red Clay’s main specialty is helping utilities such as electric grid operators install Oracle software. Oracle, one of the world’s top business software vendors, provides a line of applications built specifically for the needs of utilities. Setting up those applications can take years in some cases as well as plenty of specialized expertise, which is where consultancies like Red Clay come into the picture.

Red Clay provides software implementation and project management services. It also operates in a few other areas. It can train a client organization’s employees how to use and maintain Oracle software, as well as integrate that software with the other IT systems already up and running in a utility’s network.

RLH managing director Kevin Cantrell and vice president Paul Fortin issued a joint statement saying that “Red Clay Consulting and RLH Equity Partners will continue to deliver upon the high expectations of its clients and invest in even more comprehensive client solutions.”

Private equity firms often seek to realize a return on their investments by giving the companies they back access to additional capital. The companies’ leadership teams then use that capital to hire more employees and close new deals. In other cases, private equity firms might merge a business they bought with another portfolio company that has complementary offerings.

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