Private equity firms play an important role in funding and supporting the growth of lower and middle market (LMM & MM) companies, which will typically have revenues ranging from $50 million to $500 million. In this blog post, we will look at the top five middle-market private equity investors and what sets them apart from the competition after working with thousands and personally investing into hundreds.
LLR Partners, a well-known middle market private equity firm based in Philadelphia, PA, that invests in the technology, healthcare, and financial services sectors, is at the top of the list because of how hands-on they are with their portfolio companies (operator-first approach) and how much the firm focuses on creating value through operational improvements and strategic initiatives.
Another significant name in the private investment industry is Monomoy Capital Partners, which specializes in investing in companies experiencing an operational or financial transition. The firm is distinguished by its extensive operational knowledge and close collaboration with portfolio companies aimed at driving growth and improving profitability.
PE firm Centre Lane Partners specializes in middle-market investments in industries such as consumer, industrial, and services. The firm has a hands-on approach and emphasis on value development through operational improvements, inorganic growth, and other industry veteran-led initiatives.
Bregal Sagemount, a private equity firm focused on the lower and middle market, invests in high-growth firms in the technology, healthcare, and industrial sectors. The firm is well-known for its strong industry knowledge with firm leaders having operational and direct industry experience, and attempts to assist portfolio firms in reaching their full potential through strategic investments and operational improvements.
Finally, Wind Point Partners is a lower middle market private equity firm that invests in leading middle market businesses in the consumer products, industrial, and services industries. The firm is known for its value creation and sector expertise, as well as its dedication to collaborating with portfolio firms to drive development and enhance operations.
In summary, these five middle-market private equity firms provide distinct viewpoints and skills, making them great partners for companies seeking to realize their full potential, but have already experienced material growth. These firms have a proven track record of performance and return generation in the lower and middle market, with a focus on value creation through operational improvements, extensive industry understanding, and a hands-on approach to working with portfolio companies.