Investment Focus & Thesis

Mill City Capital focuses on control investments in lower middle market companies with defensible market positions. Their investment thesis centers on partnering with management teams to drive growth: Investment Range Equity investments typically ranging from $25 million to $75 million in companies with enterprise values of $50 million to $250 million. Sector Focus Industrial services, business services, healthcare services, and manufacturing. Industrial services — Specialty industrial services, manufacturing, and distribution Business services — Professional services, information services, and outsourced services Healthcare services — Healthcare services and healthcare IT Manufacturing — Niche manufacturing with defensive characteristics

Notable Portfolio Companies

Mill City Capital has built a diverse portfolio across multiple sectors: Company Sector Notes Walker & Dunlop Business Services Commercial real estate finance Kapstone Industrial Paper and packaging Jet Edge Industrial Aircraft maintenance and modification Paulfred Industrial Specialty metals Noram Industrial Food equipment manufacturing Triton Industrial Industrial distribution Mill City Capital has a strong track record of value creation through operational improvements, strategic acquisitions, and organic growth initiatives.

What Mill City Looks For

Based on their investment patterns, Mill City Capital evaluates opportunities based on: Defensible market position — Companies with strong niche positions and barriers to entry Recurring revenue — Businesses with predictable revenue from long-term contracts Management teams — Experienced management with deep industry expertise Growth potential — Clear pathways to organic growth and add-on acquisitions Midwest focus — Preference for companies in the Upper Midwest region }> Pro Tip Mill City Capital has deep expertise in industrial and business services sectors and values companies with strong management teams. They have a particular interest in Midwest-based companies.

How to Connect With Mill City

Approaching Mill City Capital requires demonstrating your company's fundamentals and growth potential: 1 Showcase Defensible Position Demonstrate strong competitive positioning and barriers to entry. 2 Highlight Management Team Show strong leadership team with deep industry expertise and track record. 3 Prepare Growth Roadmap Develop a clear plan for organic growth and potential add-on acquisitions. 4 Leverage Industry Networks Many deals come through advisors, industry consultants, or investment bankers.

The Value of Financial Preparedness

Lower mid-market investors expect thorough financial and operational analysis: Financial Metrics Clean financial statements EBITDA analysis Revenue and margin trends Working capital requirements Operational Metrics Customer concentration analysis Employee and management depth Systems and processes Quality metrics }> How Eagle Rock Helps We help lower mid-market companies prepare for PE investment by building professional financial infrastructure, detailed operational dashboards, and strategic planning. Our fractional CFO services ensure your company is ready for due diligence.

Frequently Asked Questions