Detroit has emerged as a vibrant hub for private equity firms, attracting investors with its robust industrial base and strategic economic landscape. Firms like Huron Capital, and Peninsula Capital Partners have established strong roots in the city, leveraging its manufacturing heritage and diverse economic opportunities. These firms are transforming lower middle-market companies across various sectors, driving operational improvements and sustainable growth. Interested in connecting with like-minded professionals? Join our community at alexejpikovsky.com/community.
Huron Capital
Investment Style: Huron Capital focuses on lower middle-market companies and employs a buy-and-build strategy across various sectors including business services, consumer goods, and specialty manufacturing. Their approach emphasizes partnering with management teams to drive operational improvements and growth.
Portfolio Companies: Includes LABORIE Medical Technologies, Sciens Building Solutions, and Ronnoco Coffee.
Founding Date: 1999
Number of Investment Professionals: Approximately 30
Assets Under Management: Over $1.8 billion
Key Investment Professionals:
- Brian Demkowicz, Managing Partner: Co-founded Huron Capital and has been instrumental in developing its investment strategy and overseeing its growth.
- Jim Mahoney, Partner: Focuses on sourcing and executing new investments and has played a key role in the development of several portfolio companies.
- Mike Beauregard, Partner: Specializes in operational improvements and strategic growth for portfolio companies.
Recent Exits:
- Gastroenterology Associates to a strategic buyer in the healthcare sector.
- Albireo Energy to a private equity-backed strategic acquirer.
Recent Investments:
- Acquisition of Bloomer Chocolate Company, expanding their focus in the consumer goods sector.
- Investment in Clarity Voice, enhancing their portfolio in the communications space.
Office Locations:
- Detroit (Headquarters): 500 Griswold Street, Suite 2700, Detroit, MI
Website: www.huroncapital.com
Quote: “Our unique ExecFactor® buy-and-build investment model allows us to provide strategic resources to our companies, helping them achieve sustainable growth.” – Brian Demkowicz, Managing Partner
Peninsula Capital Partners
Investment Style: Peninsula Capital Partners specializes in providing mezzanine and structured equity capital to support buyouts, recapitalizations, and growth financings for middle-market businesses across various sectors.
Portfolio Companies: Includes companies such as Highline Aftermarket and ZRG Partners.
Founding Date: 1995
Number of Investment Professionals: Over 20
Assets Under Management: Approximately $1.6 billion
Key Investment Professionals:
- Michael F. Hand, Managing Director: Key leader in guiding the firm’s investment strategy and portfolio management.
- Mark R. Hollis, Managing Director: Focuses on deal origination and the execution of investment opportunities.
Recent Exits:
- Exit from investment in PTC Alliance, a global manufacturer of steel tubing and chrome-plated rod.
Recent Investments:
- Investment in Aero Communications, expanding their telecommunications infrastructure capabilities.
Office Locations:
- Detroit (Headquarters): 500 Woodward Avenue, Suite 2800, Detroit, MI
Website: www.peninsulafunds.com
Quote: “Our structured equity approach allows us to tailor solutions that meet the unique needs of our portfolio companies, enabling sustainable growth.” – Michael F. Hand, Managing Director
Strength Capital Partners
Investment Style: Strength Capital Partners focuses on investing in lower middle-market businesses, primarily in the manufacturing, distribution, and business service sectors. They target companies with strong growth potential and seek to enhance value through operational improvements.
Portfolio Companies: Includes Mercury Plastics and Super Radiator Coils.
Founding Date: 2000
Number of Investment Professionals: Approximately 10
Assets Under Management: Around $500 million
Key Investment Professionals:
- Mark McCammon, Managing Partner: Specializes in driving operational enhancements and strategic growth in portfolio companies.
- Michael Bergeron, Partner: Focuses on identifying and executing investment opportunities.
Recent Exits:
- Sale of Mercury Plastics to a strategic buyer in the packaging industry.
Recent Investments:
- Investment in American Industrial Partners, enhancing their manufacturing capabilities.
Office Locations:
- Detroit (Headquarters): 3200 Penobscot Building, Detroit, MI
Website: www.strengthcapital.com
Quote: “We believe in the transformative power of operational excellence and strategic planning to unlock the full potential of our portfolio companies.” – Mark McCammon, Managing Partner
Blackford Capital
Investment Style: Blackford Capital targets lower middle-market companies for growth-oriented investments across a range of industries including manufacturing and distribution. They focus on strategic growth and operational excellence to drive value creation.
Portfolio Companies: Includes Grand Transformers and Quality Aluminum Products.
Founding Date: 2000
Number of Investment Professionals: Over 15
Assets Under Management: Approximately $650 million
Key Investment Professionals:
- Martin Stein, Managing Director: Leads the firm’s investment strategy and manages portfolio development.
- Jeff Helminski, Managing Director: Provides strategic direction and leadership for investment initiatives.
Recent Exits:
- Sale of Custom Profile to a strategic buyer in the plastic extrusion industry.
Recent Investments:
- Investment in Accurate Metal Machining, expanding their manufacturing capabilities.
Office Locations:
- Detroit (Headquarters): 5200 Town Center, Suite 104, Detroit, MI
Website: www.blackfordcapital.com
Quote: “Our strategy is deeply rooted in operational improvement and strategic growth, enabling our portfolio companies to achieve their full potential.” – Martin Stein, Managing Director
Superior Capital Partners
Investment Style: Superior Capital Partners focuses on investing in niche manufacturing, distribution, and business service companies. They emphasize turnaround and special situations that require operational improvements and strategic repositioning.
Portfolio Companies: Includes ProVest and Edgewater Automation.
Founding Date: 2007
Number of Investment Professionals: Around 10
Assets Under Management: Approximately $300 million
Key Investment Professionals:
- Scot Lund, Managing Partner: Specializes in turnaround investments and strategic transformations.
- Mike Mazzeo, Partner: Focuses on operational improvements and strategic growth.
Recent Exits:
- Sale of Edgewater Automation to a strategic acquirer in the automation sector.
Recent Investments:
- Acquisition of ProVest, enhancing their service offerings in legal support and processing services.
Office Locations:
- Detroit (Headquarters): 400 Renaissance Center, Suite 2600, Detroit, MI
Website: www.superiorcapital.com
Quote: “Our focus on special situations allows us to create significant value through focused operational improvements and strategic repositioning.” – Scot Lund, Managing Partner
Long Point Capital
Investment Style: Long Point Capital focuses on lower middle-market buyouts, investing in business services, consumer, and industrial sectors. They aim to partner with experienced management teams to leverage growth opportunities and enhance operational efficiencies.
Portfolio Companies: Includes companies like Apex Companies and The Tranzonic Companies.
Founding Date: 1998
Number of Investment Professionals: Approximately 20
Assets Under Management: Around $700 million
Key Investment Professionals:
- Morris Gelb, Managing Director: Focuses on strategic growth and operational improvements within portfolio companies.
- Ira Starr, Partner: Plays a key role in sourcing and executing new investments.
Recent Exits:
- Exit from Apex Companies to a private equity-backed strategic buyer.
Recent Investments:
- Investment in The Tranzonic Companies, supporting their growth in the industrial products sector.
Office Locations:
- Detroit=: 400 Renaissance Center, Suite 2600, Detroit, MI
Website: www.longpointcapital.com
Quote: “Our partnerships with management teams are centered around leveraging growth opportunities and achieving operational excellence.” – Morris Gelb, Managing Director
ValStone Partners
Investment Style: ValStone Partners is a private equity firm with a focus on real estate investments and alternative asset classes. They specialize in value-oriented investments and aim to deliver superior risk-adjusted returns.
Portfolio Companies: Involves investments in various real estate assets and distressed loan portfolios.
Founding Date: 1998
Number of Investment Professionals: Approximately 20
Assets Under Management: Over $1 billion
Key Investment Professionals:
- David R. Voit, Managing Partner: Leads the firm’s strategic direction and investment strategies.
- Brian Stokes, Partner: Specializes in real estate asset management and acquisitions.
Recent Exits:
- Sale of a major real estate portfolio to a strategic acquirer in the sector.
Recent Investments:
- Acquisition of distressed real estate assets, focusing on turnaround potential.
Office Locations:
- Detroit (Headquarters): 400 Renaissance Center, Suite 2400, Detroit, MI
Website: www.valstonepartners.com
Quote: “Our disciplined and value-oriented investment approach allows us to capitalize on a range of opportunities across market cycles.” – David R. Voit, Managing Partner
Detroit’s private equity landscape continues to evolve, reflecting the city’s resilient economic transformation. These firms are not just financial entities but catalysts for regional revitalization, leveraging local expertise and untapped potential. As Detroit rebuilds its industrial legacy, private equity remains a critical driver of economic renewal and strategic reinvention.
For those eager to dive deeper into the nuanced world of business exits and acquisitions, I invite you to join me on my YouTube channel at @alexejpikovsky. Each week, I’ll share insights that can help you optimize your path to a successful exit.