QXO Start-Up Raises $620M in New Private Placement

After closing, the company anticipates having $5B in cash and no debt

A picture of the vault inside the Federal Reserve Bank of St. Louis. — After the latest private placement funding round closes, start-up QXO will have $5 billion in cash and no debt. The round includes a $150 million investment by Affinity Partners, which was founded by Jared Kushner, the son-in-law of former President and current presidential candidate Donald Trump.
— Image courtesy of the Federal Reserve Bank of St. Louis

QXO, Inc., a new ‘behemoth in the making’ that hopes to become a market leader in the construction materials distribution space, announced Monday that it entered into purchase agreements with institutional and accredited investors for an additional $620 million in private placement financing.

According to a July 22 company news release, the transaction involves more than 67 million shares of QXO common stock at $9.14 per share. The latest funding round also includes a $150 million investment from Jared Kushner, son-in-law of former President Donald Trump and founder of Affinity Partners.

Jared Kushner, founder of Affinity Partners, made a $150M investment in QXO. QXO said that Kushner has joined the QXO board of directors as an independent director, taking the fifth of seven seats, effective immediately. The deal is expected to close on July 25. Additionally, QXO confirmed its previous financing round, totaling $3.5 billion, closed on July 19, 2024.

Following this latest round of capital, QXO said the company will be debt-free and have approximately $5 billion cash on hand. That sum includes a reported initial investment of $900 million from QXO founder Brad Jacobs through Jacobs Private Equity and $100 million from Sequoia Heritage and other co-investors.

QXO’s sale of securities thus far is shielded from the Securities Act of 1933 since the company has not yet made shares available to the public through an initial public offering. Following the latest financing round, QXO anticipates having approximately 409.4 million outstanding shares of common stock, and the company stated it plans to use the proceeds raised to grow its business through acquisitions.

After closing, the company said it will have approximately 889.4 million outstanding shares of common stock (or approximately 739.0 million if warrants are exercised on a cashless basis at a per-share price equal to the new private placement).

QXO said it has agreed to use “commercially reasonable efforts” to file a registration statement with the SEC regarding the resale of the common stock sold in the private placements.

Goldman Sachs and Morgan Stanley are joint lead placement agents for the private placements; Paul, Weiss, Rifkind, Wharton & Garrison LLP served as QXO's legal adviser.

For more information, visit QXO.com.

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Bryan Gottlieb is the online editor at Engineering News-Record (ENR).

Gottlieb is a five-time Society of Professional Journalists Excellence in Journalism award winner with more than a decade of experience covering business, construction, and community issues. He has worked at Adweek, managed a community newsroom in Santa Monica, Calif., and reported on finance, law, and real estate for the San Diego Daily Transcript. He later served as editor-in-chief of the Detroit Metro Times and was managing editor at Roofing Contractor, where he helped shape national industry coverage.

Gottlieb covers breaking news, large-scale infrastructure projects, new products and business.