Understory Capital Management is a private investor that partners with operators to build durable and scalable businesses.
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
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.
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
Get in Touch
info@understorycm.com