Longtime builder Davis Homes acquired by Fort Wayne-based investment firm

A central Indiana homebuilder with roots dating to the 1950s is under new ownership.

Fort Wayne-based investment and management firm Defy Investments announced Tuesday that it has acquired Indianapolis-based Davis Homes, one of the area’s largest residential builders. Financial terms were not disclosed.

Defy Investments was launched by Rival Holdings in Fort Wayne in November as an investment and management company focused on acquiring and growing commercial and residential construction companies.

President David McDonald told Inside INdiana Business that Davis Homes was an attractive goal for Defy, which is focused on investing in Indiana-based companies.

“Davis does a great job sort of taking that hybrid approach to home building … that land-light approach that’s being popularized among many builders, and also just the way that they build–the price points very accessible for Indiana homeowners,” McDonald said. “In addition to that, Indianapolis, of course, is a great market to be in, and Fort Wayne, where we are based, is also growing. So we’re just bullish on Indiana.”

Davis Homes was founded in the late 1950s by O.E. Davis and his son, Charles Davis. The company is now run by Charles’ son, Bradley Davis, who serves as CEO, as well as Chief Operating Officer Don Chesney. Through the years, businesses operated by the Davis family have built more than 25,000 homes in Indiana.

In 2008, Davis Homes ceased operations as a result of the housing crisis that led to the Great Recession. Bradley Davis continued in the housing sector, however, forming Davis Building Group LLC, which focused on renovating foreclosed homes instead of building new ones.

In 2014, Davis re-entered the building market under the Davis Building Group name, which now does business as Davis Homes.

Davis Homes is the seventh-largest homebuilder in the Indianapolis area, having filed 173 building permits in 2023, according to the latest IBJ research. It reported revenue of $69.2 million the same year.

As part of the acquisition, Bradley Davis will continue as CEO and retain a minority ownership stake in the company. Defy Investments said all other Davis employees will continue in their positions.

McDonald said getting to know the leadership team at Davis Homes was another key part of the decision to move forward with the acquisition–a process that took about a year to complete.

“We want to empower the leadership that’s in place,” he said. “We want to grow and expand. We know that private equity, private capital, sort of has a negative connotation from time to time, but the way that we approach it is we want to be an investment company, meaning that we can allocate capital and resources as needed, and we want to be a partner.”

With the current team in place, McDonald said he believes Davis Homes is primed for continued growth.

“I think that Davis has cast a vision to grow from where they are today to significant and robust growth over the next five years,” he said. “And we believe that the home building market sets up perfectly for that. We think Indiana sets up perfectly for that. And so there are some distinct regions within the state where we could see expansion opportunities in the years ahead.”

Davis Homes is the second company under Defy Investments’ umbrella. The first was Mason, Michigan-based Laux Construction, which was acquired by Defy’s parent, Rival Holdings, in June 2024.

“We are honored to join forces with Defy Investments and look forward to achieving new heights together, building on our shared values and dedication to excellence,” Bradley Davis said in written remarks.