Understory Capital Management is a private investor that partners with operators to build durable and scalable businesses.
buildings on side streets
buildings on side streets

Understory’s collaborative approach starts with partnership and encompasses operational engagement, strategic foresight, and the dedication to building enduring success.

Expect us to act with integrity, camaraderie, and a relentless commitment to achieving shared goals and creating value for shareholders.

Understory seeks to invest in services companies with annual EBITDA of $2-10 million.

Partner First Approach

Our Core Values

Target Criteria

people riding boat on body of water
people riding boat on body of water

Partner First

We are true partners investing our own capital alongside investors and dedicating our time alongside management to drive significant and long-term value creation.

Understory is flexible with transaction structures and transition timelines. We collaborate with prospective partners to develop a structure that aligns incentives for all stakeholders as we work toward a shared vision.

Our approach leverages insights from working with hundreds of services businesses to drive growth, scale operations, and achieve other objectives for our valued partners.

a library filled with lots of books and tables
a library filled with lots of books and tables

About

Understory Capital Management is a private equity firm that invests in service-oriented companies and partners with operators to build durable and scalable businesses.

With over a decade of investing, mergers and acquisitions, and operating experience, Understory brings diverse insights and creative solutions with a track record of executing successfully.

Our model focuses on being a true partner, and a force for growth to organizations in the pursuit of long-term value creation.

Approach

Leveraging insights from working with hundreds of middle market and lower middle market businesses to drive growth, scale operations, and achieve other objectives for our valued partners.

Understory focuses on high conviction opportunities and running a concentrated portfolio of companies where we actively contribute to their growth and success.

Our approach starts with partnership and alignment of interests rooted in a shared view of objectives, roles, growth strategies and more throughout the relationship.

Building businesses is our passion, and we are excited to work with great people in pursuit of transformational growth opportunities.

Understory is enthusiastic about situations where management teams are willing to co-invest in partnership with us and our investors.

Our approach also enables us to assist with leadership transitions and retirement of owner-operators.

Criteria

Services Industries Focus

  • Business services

  • Consumer services

  • Facility services

  • Industrial and infrastructure services

  • IT and tech-enabled services

  • Professional services

  • Transportation and logistics

Key Characteristics

  • Stable or recurring revenue or customer base

  • Identifiable growth opportunities

  • Sustainable margins

  • Limited capital intensity or high returns on assets

  • Significant barriers to entry and/or other sustainable advantage

Size
  • EBITDA of $2 million to $10 million


Control
  • Understory Capital Management seeks to acquire controlling interest in companies


Geographic Focus
  • Companies located in the United States

man in black jacket riding black motorcycle on green grass field during daytime
man in black jacket riding black motorcycle on green grass field during daytime
gray and black concrete building
gray and black concrete building
blue and black city buildings photography
blue and black city buildings photography

Get in Touch

info@understorycm.com

Email