Lower Middle Market Manufacturing, Service & Distribution
HCI Equity Partners has a long history of forming successful partnerships in growth-oriented manufacturing, service and distribution companies based in North America. HCI’s focus is in the lower middle market which includes companies with approximately $20 to $200 million in annual revenue.
HCI believes that its extensive operating experience provides a deeper understanding of industry sector trends and business fundamentals. We believe this experience combined with our strong culture is what sets us apart from other private equity firms.
$3-25 Million
EBITDA up to $25 million$200 Million
Revenue from $20-200 million$15-75 Million
Investment from HCI up to $75 million20% Reinvest
Avg. Management Team Reinvestment over 20%Market & Sector Focus
HCI Equity Partners considers investments in family/founder owned companies with a strong management team and an attractive business model across the spectrum of manufacturing, service and distribution companies. We pursue partnerships with owners and management teams who seek meaningful equity stakes in order to align interests and develop a shared vision for growth.
- Business models of interest:
- Value-added Distribution/Outsourced Manufacturing
- B2B Services
- Niche & Specialty Manufacturing
- Targeted business attributes:
- History of growth and profitability
- High returns on tangible invested capital
- Scalable cost structures
- Ability to withstand economic cycles
- Companies in fragmented industries
- End markets with deep experience:
- Aerospace & Defense
- Automotive
- Building Products
- Foodservice
- Industrial Services
- Infrastructure
- Test and Measurement
- Transportation & Logistics
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Prefer majority ownership
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Independently/privately owned
Add-on Acquisitions
- HCI is constantly looking for add-on acquisitions to bolster the organic growth of our platforms. We have completed 75+ add-ons on over 16 platforms since 2016.
- Our criteria for add-ons is similar to those for platforms but with a lower EBITDA threshold. We will invest in an add-on with EBITDA as low as $1 million. We will also consider merging a platform with a competitor of similar scale.
- Find our specific add-on needs within the portfolio next to the company description.
We seek to partner with family or founder owned companies in which the owners and management teams desire a continuing role and equity stake to pursue a shared strategy and vision for growth.
The critical elements of the firm’s investment strategy include:
- Business model focus with targeted attributes
- Shared vision for growth- both organic and through acquisition
- Hands-on operational and financial involvement