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, to whom Fortune granted anonymity because they weren’t authorized to speak about the firm.
RZC is a multistage fund based in Walmart’s hometown, Bentonville, Ark., and funded by 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.
A spokesperson for the fund said RZC had approached its investments, in part, as a way to bring more investors and operators into the Northwest Arkansas region and broader state