The Top 50 Lower Middle Market Healthcare Investors & M&A Advisors [2024]
Axial is happy to release its 2024 publication of the Top 50 Lower Middle Market Healthcare Investors and M&A Advisors:…
The Middle Market Review Insights on the Middle Market.
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We are thrilled to release the 2024 list of the Top 20 Independent Sponsors on Axial!
In the past year, Independent Sponsors have solidified their position as key players in the M&A landscape. The latest data from Axial highlights this trend, showcasing a 28.48% year-over-year increase in Independent Sponsors using the platform. In addition, Independent Sponsors accounted for 31% of all platform-sourced closed deals over the last 12 months, leading all buyer types.
Closed Deals By Buyer Type | L12M
Independent Sponsors are increasingly popular in lower middle market transactions due to their flexibility, personalized approach, and deep industry expertise. They often bring a hands-on, tailored strategy to each investment, which resonates well with business owners seeking a partner who can offer more than just capital.
Axial’s Independent Sponsor ranking is assembled based on the deal-making activities of 573 Independent Sponsors (full deal activity breakdown above) and is primarily driven by three factors:
- Total Closures: Total deals closed by the firm since inception
- Axial Closures: Total closed deals sourced via Axial
- Process Effectiveness: Ability to progress to the IOI or LOI stage on deals sourced via Axial
Congratulations to the featured Independent Sponsors for their achievements!
The Top 20 Independent Sponsors
| Rank | Firm Name | HQ |
|---|---|---|
| 1 | Pearl Street Capital Partners  |
NY |
| 2 | CMG Companies |
TX |
| 3 | Columbia River Partners LLC |
WA |
| 4 | Amalgam Capital, LLC |
NC |
| 5 | Pillar49 Capital |
ON |
| 6 | Evolution Strategy  |
TX |
| 7 | Willistown Capital |
TX |
| 8 | Metamora Growth Partners |
CA |
| 9 | Broadwing Capital |
TX |
| 10 | Parkstone Growth Partners |
NY |
| 11 | GraceCap Investors |
NJ |
| 12 | W Holdings LLC |
UT |
| 13 | Auricle Capital Partners |
CA |
| 14 | Pursuant Capital |
FL |
| 15 | LP First Capital |
TX |
| 16 | Polychrome Capital |
CA |
| 17 | Swift Anchor Holdings |
NY |
| 18 | EO Capital Partners LLC |
IN |
| 19 | Marigny Investments LLC |
CO |
| 20 | Hayden Creek Capital |
CA |
– 1 closed deal on Axial | – 2 or more closed deals on Axial
About The Top 20
“Pearl Street Capital Partners (“PSCP”) invests in outstanding family-owned and privately held businesses that have a track record of success in their markets. PSCP has committed capital from two family offices and a mandate to invest in attractive opportunities in the lower middle market. PSCP partners with founders/owners and management teams to deliver value and preserve business continuity while bringing strategic resources and capabilities to help businesses grow. We aim to build stronger businesses positioned for long-term success.
PSCP typically targets businesses with $1-7m of EBITDA and a multi-year track record of success in their markets.”
“CMG Companies is a collection of separate and independent entities, holding controlling investments predominantly in the multi-unit and franchise sector, spanning restaurants, hotels, retail, sports, automotive, and real estate industries.
We have partnered with or are currently associated with several renowned brands, including KFC, Taco Bell, Marriott, Hilton, IHG, Sonic, Little Caesars, Rent-A-Center, Ace Hardware, and Valvoline, among others.
From an investment standpoint, CMG Companies is unique. We have not only owned and operated our businesses but have also invested our own capital and raised funds from limited partners (LPs), including both institutional investors and high-net-worth accredited individuals.”
“Columbia River Partners (CRP) is a private investment firm integrating private equity, technology and special situations. CRP seeks to partner with management teams to invest in businesses going through transition or expansion with patient long-term capital. We focus on situations where we can bring technology and our network to drive change.
We are not afraid of complexity. We are not afraid of introducing technology to traditional business sectors. We are passionate about investing in people. Learn more about why we may be the right partner for you and your company.”
“Amalgam Capital, LLC is a private investment firm focused on small to medium sized acquisitions. We are a team of seasoned operators who plan to work closely with our portfolio companies to drive measurable value for all stakeholders.
We acquire and sustainably grow underrated businesses as independent sponsors.
Our multidisciplinary team of investors, entrepreneurs, and operators has created substantial value for others.”
“Pillar49 Capital provides liquidity, succession solutions, and growth capital to owners of small and medium-sized businesses while preserving and building on the factors that made them great – culture and people.
We partner with North American businesses with $1 to $10 million+ of EBITDA / cash flow, with a long growth runway and attractive industry characteristics.
At Pillar49, we take a different approach than most investors by “rolling up our sleeves” as active managers, providing our partners with the operational and financial resources to support and drive long-term growth. With over 20 combined years of experience investing, advising, and helping build businesses, we will be a foundational “pillar” for the next stage of your growth through our active ownership.”
“Evolution Strategy Partners is a differentiated, principled private equity firm with a unique approach to conducting business.
We consider our portfolio companies as true partners, not merely investments. Evolution values and respects the people with whom we work and believes its value-added involvement is only beginning at the time a transaction closes. We stay engaged and empower company leaders to accelerate the maximum potential of their businesses.
Evolution’s primary focus is on entrepreneur-owned businesses, but we remain flexible in exploring other opportunities where our knowledge and interests are aligned. We typically target industrial and commercial service businesses with under $75 million in revenue and select only a handful of new platform opportunities to pursue each year.”
“Willistown Capital is a Texas-based private investment firm that started in 2014 to partner with and invest in small businesses. We operate as an independent sponsor with committed capital from a family office and high-net-worth individuals. Our acquisitions strategy is focused on identifying high-quality businesses and owners/management teams where our capital, resources, and relationships can have a direct and positive impact on the business, its employees, and its customers. Our ownership period is indefinite, although we focus on businesses where we can help double revenue within the first five years.”
“Metamora Growth Partners is an investment firm focused on buying and growing software and technology-enabled services companies. We are committed to:
- Closing transactions efficiently
- Paying fair prices
- Honoring the legacy of the owners, we succeed through integrity and a commitment to taking care of existing customers and employees.
We differentiate with our deep experience and focus on healthcare-related services and software as well as our long-term time horizon and goal to be permanent owners of the businesses we acquire.”
“Broadwing is a Dallas-based private equity firm that actively partners with management teams to build industrial, services, and niche manufacturing companies while investing in their people and communities.
We don’t just hold investments. We partner with great teams to achieve outstanding results together. We prioritize opportunities where our constructive philosophy overlaps with our sector experience.”
“Parkstone Growth Partners is a private investment firm focused on lower middle-market investments across the healthcare, insurance, consumer, and retail industries.
Our mission is to serve as business-building partners by providing capital and resources to accelerate growth while enhancing long-term value.
We are driven by our values in everything we do: Integrity, Partnership, Mutual Respect, Measurable Impact, and Family.”
“We worked at typical “Wall Street” firms but saw a market need to provide small founder or family-owned businesses with a more ‘down to earth’ option to transition their companies to responsible stewards who would invest the time, energy, and capital necessary to provide continued growth and success. Gracecap investors provide the strong operational leadership necessary to facilitate a successful transition.”
“W Holdings LLC is a private equity independent sponsor focused on investing for the long term in small to medium-sized businesses. We back strong management teams and preserve the legacies they’ve built. We work with management teams to grow cash flow and improve each business by driving growth, pursuing acquisitions, and refining strategy.”
“Auricle Capital Partners, LLC was founded to invest in high-quality US-based family and founder-owned businesses. Our principals have over 35 years of experience as investors in, advisors to, and operators of middle-market businesses. We focus on healthcare and B2B products and services, as well as other industries in certain situations.”
“We buy and grow Florida-based companies. We work with business owners to transition their legacies to a permanent home. After a business joins the Pursuant family, we invest in its people and operations so we can grow together for the next generation and beyond.”
Visit Pursuant Capital’s Profile
“LP First Capital is a private investment firm focused on business services, with experience in commercial, consumer, education, and healthcare services. We have strong operational backgrounds and industry relationships. We excel in situations where we can partner with founders and management teams to build a platform that will scale and generate long-term value for all business stakeholders.”
Visit LP First Capital’s Profile
“Polychrome acquires and partners with SMB enterprise software companies, with a focus on infrastructure, developer tools, cybersecurity, and open source companies. We are a team of seasoned operators who work closely with our portfolio companies to drive value for all stakeholders.
Our target range is companies that are >$1M in ARR, bootstrapped or have raised little capital, are profitable and growing (>0%), and are based in NA or Europe. Polychrome can purchase anywhere from 51-80% of a company, presuming that the founder rolls their equity and works with Polychrome to further scale the business.”
“Swift Anchor invests in market-leading companies that have durable moats, high-quality management teams, and cultures, deliver superior products/services to their customers, and generate significant cash flow.
We focus on companies with $3-25mm EBITDA in healthcare, business/industrial services, and aerospace & defense.
We aim to maximize outcomes through a hands-on partnership that calls for identifying and implementing value-creation ideas and seeking inorganic growth opportunities. Swift Anchor is backed by leading family offices and institutional investors.”
“EO Capital Partners is the principal investing arm of our company. We are looking to partner with companies in the lower middle market where we can add value through M&A, operational improvements, and/or access to additional capital. We bring diverse backgrounds in private equity, investment banking, and consulting, which allows us to provide a unique approach to problem-solving.”
Visit EO Capital Partner’s Profile
“Marigny Investments looks to partner with entrepreneurs seeking to transition their business into the next stage of growth. Marigny Investments targets overlooked opportunities in the B2B Services and Light Manufacturing sectors with $1-5mm of EBITDA.
Having worked as an institutional fund and an independent sponsor, we are aware of the expectations of institutional investors while leveraging our ability to be nimble to achieve our goals.
Unlocking operating efficiencies, optimizing capital allocation, and implementing strategic planning are keys to a successful business. We attempt to utilize all of these established practices while streamlining the processes to make them applicable to companies of all sizes.“
“Hayden Creek Capital (“HCC”) is a principal investment firm that focuses on investment opportunities in lower-middle market private companies. Our Principals have deep expertise in making growth equity and buyout investments, principally in the Consumer Food and Beverage, Business Services, and Distribution industries.
Our investing philosophy is grounded in identifying opportunities that will produce above-market risk-adjusted returns for us and our capital partners.
HCC seeks to partner with engaged management teams that have solid visions for growth and proven track records. We actively work with those teams to identify and implement the key strategic and operational initiatives that will drive value.”
Axial is the trusted deal platform serving the lower middle market ($2.5-$250M TEV).
Over 3,500 advisory firms and 3,000 corporate and financial buyers have joined Axial to efficiently connect with relevant capital partners, source actionable deals, and build new relationships.
Visit the Member Closed Deals page to see selected transactions that have been sourced and closed via Axial.
Learn More About Joining Axial
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