Exclusive: The Walton family–funded PE firm that owns Rapha Cycling Club presses pause on all new investments

Fortune

by Jessica Mathews

February 13, 2026

AI-Generated Deep Dive Summary

RZC Investments, the private equity firm backed by Walmart heirs Tom and Steuart Walton, has halted all new investment activities and is reevaluating its future structure. The firm confirmed the pause but declined to provide specific reasons for this decision. Notably, one of RZC's partners, Don Huffner, left the fund last year and is in the process of relinquishing his board seats. RZC, based in Bentonville, Ark., focuses on outdoor companies and has investments in firms like cycling apparel company Rapha Cycling Club, cycling GPS company Wahoo Fitness, and bicycle manufacturer Allied Cycle Works. The firm's decision to pause new investments comes amid challenges in the outdoor industry, particularly the cycling sector, which has faced declining sales and tariffs. Rapha, acquired by RZC in 2017 for $260 million, has reported annual losses since then. Additionally, Allied Cycle Works, one of few U.S.-based manufacturers, announced plans to shift future production to Asia before the imposition of tariffs under President Trump. This development matters to readers interested in business and private equity because it highlights the broader challenges facing the outdoor industry and the strategic decisions being made by investors. RZC's focus on bringing more investors and operators to northwest Arkansas underscores its role in local economic growth, while the pause in investments reflects broader market conditions affecting even well-funded firms. The outcome of RZC's restructuring could provide insights into how private equity adapts to industry shifts and economic pressures.

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Originally published on Fortune on 2/13/2026