Understory Capital Management is an operationally-focused independent sponsor firm that makes private equity investments in partnership with operators to build scalable, market-leading businesses.
Partner First Approach
Understory’s collaborative approach starts with partnership and encompasses operational engagement, strategic planning, and the dedication to building enduring success.
Our Core Values
Expect us to act with integrity, camaraderie, and a relentless commitment to achieving shared goals and creating value for shareholders.
Target Criteria
Understory seeks to invest in services companies with annual EBITDA of $2-10 million.
Understory Capital Management, LLC (“Understory”) is a Baltimore-based private investment firm focused on acquiring and growing lower middle-market businesses.
We aim to generate strong, long-term returns by investing in companies with the potential to scale into leading niche players within industries where we and our operating partners have deep expertise. Our strategy centers on close partnership with management teams to strengthen operations, accelerate organic growth, and pursue strategic add-on acquisitions.
Through disciplined execution and hands-on support, Understory helps businesses realize their full potential. Our objective is to create lasting value for all stakeholders by building companies that are not only larger, but stronger, more resilient, and better positioned for long-term success at exit.
Our approach starts with partnership and alignment of interests rooted in a shared view of objectives, roles, growth strategies and more throughout the relationship.
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.
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.
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.
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