Archives for September 23, 2025

Tailwind Launches IT Asset Disposition Platform

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DMD Systems Recovery, a provider of IT asset disposition (ITAD) services, has received a majority equity investment from Tailwind Capital.

DMD’s ITAD services include data center decommissioning, asset auditing, secure data wiping, deinstallation, lease return management, and secure disposal for large enterprises, including Fortune 500 corporations, financial institutions, healthcare providers, technology companies, government agencies, and multinational firms across 50 countries.

Source: DMD Systems Recovery

In addition to ITAD services, DMD offers third-party maintenance designed to extend the life of data center equipment. Customers can source individual components or participate in parts programs, choose repair options for non-critical systems, or rely on advanced exchange, where DMD keeps replacement units in stock for rapid deployment and repair cycle management.

Founded in 1996 by Morris Scott, the company is today led by CEO Aaron Zeper and is headquartered in Tempe, Arizona, with additional processing facilities in Texas and California.

“Aaron and the DMD team are extremely well-positioned in the quickly evolving ITAD market where services expertise is valued by customers seeking flexible, transparent and high-ROI IT asset disposition solutions,” said Will Fleder, a partner at Tailwind Capital. “Tailwind’s deep history scaling IT services businesses makes us an ideal partner for DMD at this stage of their growth trajectory. We are thrilled to partner with Aaron and the DMD team to support the company’s continued organic growth and M&A strategy.”

“We are excited to partner with the Tailwind team and accelerate DMD’s growth trajectory during such a pivotal time for our industry as infrastructure spending and resulting hardware refreshes continue to accelerate within the enterprise,” said Mr. Zeper. “DMD has a consistent track record of exceptional service delivery centered on our Reuse First mission; and with Tailwind’s investment, we will continue our lifecycle services expansion, extend the reach of our delivery capabilities, and expand the number of customers that we will serve.”

Source: DMD Systems Recovery

The global ITAD industry manages the secure and environmentally compliant retirement of outdated or surplus technology hardware, including servers, data storage devices, PCs, and mobile equipment. According to Fortune Business Insights, the market was valued at $18 billion in 2024 and is projected to reach $41 billion by 2032, reflecting a CAGR of nearly 11 percent. Precedence Research projects even faster expansion, estimating growth from $26 billion in 2024 to $90 billion by 2034. Growth is being fueled by rising global e-waste, which reached 62 million metric tons in 2022, according to the Global E-Waste Monitor, with only 22 percent formally recycled. North America and Europe remain the largest markets, while Asia-Pacific is expanding rapidly due to increased digitalization and stricter environmental regulation.

“DMD represents a unique opportunity to invest behind a services-first solutions partner in a high-growth market that will benefit from accelerating compute and IT infrastructure advancement,” said Paul Lidsky, an operating executive at Tailwind and the new executive chairman of DMD. “Our deep industry expertise in adjacent and overlapping markets and approach to accretive M&A will help DMD to rapidly scale.”

New York-based Tailwind Capital invests from $25 million to $200 million of equity in middle-market companies with enterprise values of up to $500 million and EBITDA from $10 million to $50 million. Sectors of interest include infrastructure services, supply chain, and IT services.

In September 2018, Tailwind held an above-target and oversubscribed final closing of Tailwind Capital Partners III LP with $1.8 billion of capital. Since its founding in 2003, Tailwind has invested in more than 50 portfolio companies and completed over 170 add-on acquisitions.

© 2025 Private Equity Professional | September 23, 2025

Lion Equity’s Elkhart Tri-Went Closes First Add-On

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Elkhart Tri-Went Industrial, a portfolio company of Lion Equity Partners, has acquired Custom Tube Products.

Custom Tube Products (CTP) manufactures metal tubing assemblies and components used by OEMs and Tier 1 suppliers in the aerospace, medical, automotive, home health care, dental, energy, scientific instrument, boating, and recreational vehicle sectors.

Source: Custom Tube Products

The company’s core products include CNC bent tubing, end-formed tubing, and stainless-steel assemblies used in high-performance fluid and gas transfer applications. CTP also provides component assembly services, and stocking and shipping programs.

CTP was founded in 1987 by the husband-and-wife team of William Love and Sydney Love. Today, the company is led by their son, President David Love, and is headquartered in Edgewater, Florida.

“We’re excited to join forces with ETI. Their resources and industry reach will allow us to scale our innovations and better serve our customers nationwide,” said Mr. Love.

Elkhart Tri-Went Industrial (ETI) manufactures fabricated metal tubing components and assemblies used in OEM applications across the automotive, HVAC, water systems, and general industrial sectors. The company specializes in short-to-medium production runs of aluminum and copper extrusions and provides contract manufacturing services such as tube cutting, bending, expanding, hole drilling, flow drilling, end forming, and brazing.

Source: Elkhart Tri-Went Industrial

ETI is known for producing continuous tubular designs that eliminate the need for brazing or joints, reducing stress points and secondary operations. The company holds a patented extrusion process that uses heat and pressure to form complex, near-net shape metal parts that are produced close to their final dimensions, requiring minimal finishing. This process reduces internal porosity (tiny voids or gas pockets within the metal that can weaken mechanical properties), improves wear resistance and load-bearing performance, and reduces scrap rates by up to 30 percent compared to conventional die casting.

ETI, led by CEO Ken Robinson, operates a 120,000 sq. ft. facility at its headquarters in Geneva, Indiana. The company also has locations in Knoxville, Tennessee (40,000 sq. ft.) and near Toronto in Ajax, Ontario. Lion Equity acquired ETI from publicly traded Aalberts NV in February 2022.

“The acquisition of Custom Tube Products’ operation will expand ETI’s production footprint and add additional advanced CNC tube bending, end forming, and brazing capabilities to our portfolio,” said Mr. Robinson.

“Combining CTP with ETI creates a highly complementary partnership that broadens capabilities, expands market reach, and positions the business for long-term growth,” said Jim Levitas, co-founder and partner of Lion Equity. “We’re excited to support both teams as they build on their track records of excellence together.”

Denver-based Lion Equity makes control investments in North American corporate carve-outs and special situations, including businesses experiencing financial, operational, or industry-driven challenges. Typical targets have revenues between $30 million and $300 million and EBITDA up to $15 million. The firm invests in a wide range of sectors and is effectively industry-agnostic.

© 2025 Private Equity Professional | September 23, 2025

A Rose by Another Name: McCarthy Capital Rebrands as M-One

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Middle-market-focused McCarthy Capital has rebranded as M-One Capital. The Omaha-based firm’s new name reflects its ongoing focus on backing founder- and management-led businesses, while signaling a broader investment approach across sectors and regions.

McCarthy Capital was founded in 1986 as a fundless sponsor, making majority and minority investments of less than $10 million in smaller, regional companies. It has evolved into an institutional platform with a broader investment approach across sectors and regions.

Today, M-One Capital is investing from its latest private equity fund, M-One Capital Fund VIII LP, with $870 million of capital commitments. Within private equity, M-One invests between $30 million and $125 million in either majority or minority positions, typically in companies with more than $10 million in revenue where existing leadership retains operating control and an equity ownership position. Earlier funds under the McCarthy name included McCarthy Capital Fund VII LP with $535 million of capital (2020) and McCarthy Capital Fund VI LP with $353 million of capital (2016).

M-One also makes growth equity investments of $5 million to $20 million in companies with at least $1 million in recurring revenue. In addition, the firm has a real estate strategy that invests from $3 million to $35 million across a range of real estate asset types and markets.

Since its founding as McCarthy Capital, and including M-One investments, the firm has invested in over eighty companies, including Cabela’s, the specialty outdoor retailer; Guild Mortgage Company, a national mortgage lender; Peak 10, a data center and managed IT services firm now merged as Flexential; Vornado Air, a household name in air circulators and heaters; Medical Solutions, a leading travel nurse staffing provider; Omaha Steaks, the well-known food and steak delivery brand; and Signal 88 Security, a major franchisor of security services in North America.

More recent transactions include growth partnerships with NUSO, a cloud communications provider, and strategic exits such as BiggerPockets, an online real estate investor platform, as well as Blue Sky eLearn, Honey Smoked Fish, and Life Care Services. These transactions highlight the firm’s breadth across the consumer, healthcare, and business services sectors.

The rebranding to M-One formalizes changes that have taken shape over the past decade as the firm increased its scale, diversified its investment activity, and deepened its organizational resources.

“Our rebranding honors our legacy and reflects the significant evolution we’ve experienced over the past decade,” said Patrick Duffy, the president and managing partner of M-One Capital. “M-One Capital represents our expanded scale, strategic growth and unwavering commitment to integrity, rigor, relationships and results. While our new brand better aligns with our current organization, we remain focused on our mission of being a value-added partner to entrepreneurs and families in an effort to drive long-term growth and success.”

Today, M-One Capital has more than $4 billion in capital under management and is based in Omaha, with an additional office near Boston in Wellesley, Massachusetts.

© 2025 Private Equity Professional | September 23, 2025

MiddleGround Appoints Managing Director to Lead Exit Strategies

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MiddleGround Capital has named investment banking veteran Tim Curley as managing director, overseeing exits and realizations for the firm’s portfolio companies. Mr. Curley will be based in MiddleGround’s New York office.

In his new role, Mr. Curley will oversee exit processes for the firm’s holdings and build stronger corporate, advisory, and private equity relationships. He will also support co-investment efforts and work with portfolio company management teams on growth planning and operational improvements to prepare companies for successful sales or exits.

“Tim is an outstanding addition to MiddleGround, especially at a time when the firm is focused on realizing our investments and returning liquidity to our stakeholders,” said John Stewart, founding and managing partner of MiddleGround. “Our growth has created exciting new opportunities, and bringing in a senior leader with an investment banking background to guide exits will strengthen the way we support our portfolio companies. Tim’s expertise and collaborative approach make him a perfect fit for our team.”

Prior to joining MiddleGround, Mr. Curley spent 18 years at BMO Capital Markets, most recently as a managing director on the firm’s industrials investment banking team, where he led its transportation and diversified manufacturing practice. Mr. Curley has advised public corporations, private equity firms, and family-owned businesses on mergers and acquisitions, capital raising, and other financial transactions.

Tim Curley
Tim Curley

“I’m thrilled to join MiddleGround at such an exciting point in the company’s growth,” said Mr. Curley. “The firm’s operator-led approach to private equity truly sets it apart, and I’m excited to help ensure our exit strategies reflect the incredible work being done with portfolio companies. I look forward to working alongside such a talented team to build on that success.”

Mr. Curley earned his undergraduate degree in economics and business administration with a concentration in finance from Villanova University.

MiddleGround makes control equity investments from $20 million to $350 million in North American- and European-based business-to-business companies in the industrial and specialty distribution sectors that have up to $1 billion in revenue and at least $10 million of EBITDA. The firm, headquartered in Lexington, Kentucky, with additional offices in New York City and Amsterdam, has over $4.1 billion of assets under management and was founded in 2018.