The Complete Guide to Private Equity Firms: Reviews, Criteria & Getting Bought
Everything you need to know about working with private equity firms — from understanding their investment focus to positioning your company for a successful transaction.
Key Takeaways
- •PE firms invest in mature companies with strong cash flows and growth potential
- •Lower mid-market deals typically range from $10M-$100M
- •PE firms look for 3-5x returns over 3-7 years through operational improvements
- •Clean financials and strong management dramatically increase valuation
- •PE partnerships can bring capital, expertise, and networks to accelerate growth
Private equity represents a significant funding source for established companies. Whether you're considering selling a portion of your business or preparing for eventual exit, understanding PE firms is essential.
This guide covers everything you need to know about private equity firms — from their investment criteria to how to position your company for PE investment. We've also compiled reviews of specific PE firms to help you identify the right partners.
How to Use This Guide
This page serves as your hub for private equity firm research:
- Understand PE basics — Learn how private equity works and what firms look for
- Research specific firms — Browse our individual PE firm reviews below
- Prepare your company — Get your business ready for PE due diligence
- Execute a transaction — Navigate the sale or investment process
What Private Equity Firms Look For
PE firms have different criteria than VCs. Here's what matters:
Cash Flow
Predictable, recurring revenue with strong unit economics. PE firms use cash flow to service debt and fund growth.
Management Team
Experienced executives who can run the business post-investment. PE firms often keep existing management in place.
Growth Opportunities
Clear paths to increase revenue through new products, markets, or operational improvements.
Competitive Position
Strong market position, customer relationships, and barriers to entry that protect against competition.
PE Firm Reviews
We've researched private equity firms across the lower mid-market to help you find the right partner. Click through for detailed reviews.
LDC
Lower mid-market buyout firm investing $10M-$50M across sectors. Dallas-based.
Bain Capital Double Impact
Impact-focused PE firm investing $50M-$200M+ in Health, Education, Sustainability. Boston-based.
Wolverine
Industrial and manufacturing PE firm investing $20M-$100M. Chicago-based.
Genstar Capital
Middle market buyout firm investing $50M-$200M in Financial Services, Healthcare, Tech. San Francisco-based.
Trinity Alps Capital
Lower mid-market tech PE firm investing $10M-$50M. San Francisco-based.
Long Reach Partners
Business services and healthcare PE firm investing $25M-$100M. New York-based.
Maranon Capital
Consumer and retail PE firm investing $25M-$75M. Chicago-based.
Palladium Equity Partners
Hispanic market PE firm investing $25M-$100M. New York-based.
Roark Capital
Franchise and retail PE firm investing $50M-$250M+. Atlanta-based. Owns Subway, Dunkin, Wingstop.
Thompson Street Capital Partners
Engineering and tech PE firm investing $25M-$100M. St. Louis-based.
The PE Investment Process
Understanding the PE process helps you prepare effectively:
Initial Outreach (2-4 weeks)
PE firm reviews your teaser and signs NDA. If interested, they receive the CIM (Confidential Information Memorandum).
Due Diligence (3-4 months)
Deep dive into financials, operations, customers, legal, and market position. PE firms often hire outside advisors.
Term Sheet & Negotiation (4-6 weeks)
PE firm presents indicative terms. Negotiate valuation, structure, and governance rights.
Closing (4-8 weeks)
Final documentation, financing, and wire of funds. Transition planning begins.
How to Prepare Your Company for PE Investment
PE firms expect professional, well-organized companies. Here's how to prepare:
- Clean financials — Audited or reviewed financial statements, clean audit trail, documented accounting policies
- Operational processes — Documented procedures, KPI tracking, scalable systems
- Management depth — Strong team with bench depth, succession plans for key roles
- Customer concentration — No single customer above 20-30% of revenue
- Growth roadmap — Clear plan for how PE capital will drive returns
How Eagle Rock Helps PE-Backed Companies
Whether you're preparing for PE investment or have already closed, we help you maximize value:
Financial Infrastructure
Build the reporting and processes PE firms expect.
Value Creation Planning
Develop operational improvements to drive EBITDA growth.
Due Diligence Support
Prepare clean financials and data rooms for PE due diligence.
PE Network
Connect with PE firms actively investing in your sector.
Frequently Asked Questions
What do private equity firms look for in companies?
PE firms look for companies with strong cash flows, experienced management teams, clear growth opportunities, and the potential to increase value through operational improvements. They typically seek 3-5x returns over a 3-7 year holding period.
How is private equity different from venture capital?
VCs invest in early-stage, high-growth companies in exchange for equity. PE firms typically invest in more mature companies through buyouts or growth equity, focusing on cash flow and operational improvements. PE deals are usually larger and involve more debt financing.
What's the typical size of a lower mid-market PE deal?
Lower mid-market PE firms typically invest $10M-$100M in companies with $5M-$50M in EBITDA. These firms often focus on specific industries or geographic regions.
Should I prepare my company before approaching PE firms?
Absolutely. PE firms due diligence thoroughly. Having clean financials, strong management, documented processes, and clear growth plans significantly increases your attractiveness and valuation.
What happens after a PE firm invests?
PE firms typically take an active role in the company, often adding board members, helping recruit executives, and implementing operational improvements. They exit through sale to strategic buyers, other PE firms, or IPOs.
How long does the PE fundraising process take?
The process typically takes 6-12 months from initial outreach to closing. This includes preliminary discussions, formal due diligence (3-4 months), legal documentation, and final closing.
Ready to Prepare for PE Investment?
Whether you're considering selling to a PE firm or preparing for growth investment, our team can help you build the financial infrastructure investors expect.
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