01 / Valuations
Lower entry multiples.
6× lower vs. upmarket deals. Structural downside protection without sacrificing upside.
The Market · 01 / 03
We are Lower
Mid-Market investors.
Focused on high-growth Lower Mid-Market opportunities — a market that combines resilience and agility, ideal for our strategic, value-driven investments. The last inefficient corner in Private Equity.
Hidden champions
Under
the radar.
the radar.
Untapped opportunities, transformative growth.
Our singular focus on the Lower-Mid Market allows us to capitalize on opportunities with potential for transformative growth. It is home to numerous hidden champions operating under the radar, characterized by a supply–demand imbalance that drives attractive entry valuations, and increasingly shaped by compelling succession opportunities.
Why LMM
Five structural
advantages.
The Lower Mid-Market sits at the intersection of attractive entry valuations, operational upside, and large addressable supply.
02 / Value Creation
Operational levers.
High-impact, real-economy levers still available — not dependent on financial engineering or excessive leverage.
03 / Supply
Succession opportunity.
Increasingly shaped by founder retirements and corporate carve-outs across North America and Western Europe.
04 / Quality
Hidden champions.
Profitable, niche-leading businesses with double-digit growth and structural margin advantages.
The Read
More inefficiency.
More return.
The smaller the company, the wider the dispersion — and the larger the alpha available to disciplined operators.
05 / Resilience
Cycle-tested.
Lower correlation to public markets and large buyout cycles. Diversification across sectors, geographies, and vintages.
By the numbers
A market built
for our edge.
Two structural facts define the LMM opportunity. Capital floods upmarket while pricing stays disciplined below — opening a persistent multiple arbitrage we exit into.
01
Extreme capital
overhang upmarket.
Fundraising growth vs. invested capital growth, 2010–2022.
02
Entry multiples
tell the story.
Buyout EV/EBITDA in EU & NA, 2008–2024 — the spread we exit into.
17×13×9×5×
6.1×
2024 entry multiple spread
Large >$1B EV vs. small <$1B EV buyouts
20082012201620202024
Large buyouts >$1B EV
Small buyouts <$1B EV
3–8×
Multiple spread captured on exit
15.0×
Fundraising growth, large funds 2010–22
16.9%
Top vs. bottom-quartile manager spread
20%
Risk-adjusted uplift via diversification
Source: Schroders Capital, CapIQ, Baird Global M&A Report.