BDT Capital Partners Review: Family & Founder-Owned Businesses Private Equity Investment Focus, Portfolio & Deal Criteria

In-depth review of BDT Capital Partners: investment thesis for family and founder-owned businesses, portfolio companies, typical deal sizes, and how to prepare for investment.

Key Takeaways

  • •Focus on Family & Founder-Owned Businesses, Generational Transitions
  • •Investment range: $50M-$500M+ in equity
  • •Based in Chicago, founded 2009 (BDT & Company merged with MSD Partners in 2023)
  • •Merchant bank with advisory and investment solutions
  • •Led by Byron Trott and Gregg Lemkau

Firm Overview

BDT & MSD Partners is a merchant bank providing advisory and investment solutions tailored to founders, family business owners, and select like-minded investors. The firm was formed in 2023 through the combination of BDT & Company (founded 2009) and MSD Partners (founded 2009).

The firm focuses on providing trusted advice, aligned capital, and differentiated investment solutions to support enduring growth and impact for generational businesses.

Investment Strategy

  • Long-term partnerships with family and founder-owned businesses
  • Flexible transaction structures allowing founders to retain ownership
  • Patient capital approach with focus on generational wealth creation
  • Advisory-focused model with hands-on strategic guidance
  • Focus on established businesses with proven track records

What BDT Capital Partners Looks For

  • Family or founder ownership — Companies where founders or families maintain significant ownership
  • Proven business model — Established companies with track record of profitability
  • Market position — Strong competitive position in attractive markets
  • Growth potential — Clear opportunities for growth and value creation
  • Alignment of values — Shared commitment to long-term thinking and stakeholders

Pro Tip

BDT Capital Partners is known for their patient, flexible approach. They often structure transactions that allow families to retain significant ownership and involvement.

How to Connect With BDT Capital Partners

  • Demonstrate Long-Term Thinking — Show commitment to sustainable growth and stakeholder value.
  • Build Professional Financials — Ensure clean financials with EBITDA profitability analysis of $15M+. Have detailed financial models ready.
  • Articulate Succession Plans — Be prepared to discuss transition planning and growth vision for the business.
  • Leverage Industry Networks — Build relationships through advisors and intermediaries familiar with BDT.

Companies seeking BDT Capital Partners investment must demonstrate strong financial infrastructure

  • Financial Metrics — EBITDA profitability analysis and cash flow, Revenue growth trajectory, Gross margins, Working capital efficiency
  • Operational Metrics — Customer concentration, Employee retention, Key performance indicators, Governance structure

How Eagle Rock Helps

We help family businesses prepare for BDT Capital Partners investment by building robust financial infrastructure and transition planning.

Pro Tip

Have clear growth initiatives and market expansion plans ready to present.

Frequently Asked Questions

What industries does Bdt Capital Partners focus on?

Bdt Capital Partners primarily invests in Industrial, Distribution, Retail. The firm seeks companies with strong market positions and clear growth trajectories.

What size companies does Bdt Capital Partners acquire?

Bdt Capital Partners typically invests $50M-$500M in equity, targeting companies with enterprise values in the lower to middle market range.

What is Bdt Capital Partners's typical investment size?

The firm's equity investments generally range from $50M-$500M, positioning them as active investors who can provide meaningful capital for growth.

How long does Bdt Capital Partners's due diligence process take?

Due diligence timelines vary by deal complexity, but Bdt Capital Partners typically conducts thorough financial, operational, and market due diligence over several weeks to months.

What should I prepare before engaging with Bdt Capital Partners?

Prepare three years of audited financials, detailed market analysis, management team bios, growth plans, and a clear vision for how the partnership would create value.

How does Bdt Capital Partners work with portfolio companies?

Bdt Capital Partners takes a partnership approach, working closely with management teams on strategic initiatives, acquisitions, and operational improvements.

Ready to Connect With Bdt Capital Partners?

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This article is part of our Private equity firms | Eagle Rock CFO guide.