Liftout Capital, a lower middle market private equity firm, has been launched in Denver by Eric Wolf and Bo Sutton. Both founders were former professionals at Bow River Capital.
With the launch, Liftout is now actively sourcing founder-owned business and industrial service companies that have EBITDA of $1 million to $10 million. Sectors of specific interest include utility services, testing and inspection, education and training, residential services, and niche consulting.
“The lower middle market is the most attractive segment within private equity and where we want to invest our capital. Many firms have success and move upmarket – we plan to remain permanently in the lower middle market and provide a profound level of alignment with our portfolio companies,” said Mr. Wolf.
Prior to co-founding Liftout, Mr. Wolf was a partner and co-founder of Denver-based Bow River Capital from 2003 to 2022. At Bow River, Mr. Wolf was a member of the firm’s investment committee, and he was the chairman of numerous Bow River portfolio companies. From 2013 to 2022, Mr. Sutton worked at Bow River, most recently as a director beginning in 2020.
Liftout intends to limit its portfolio to four platform companies at any given time. “As an investment holding company we will employ flexible hold periods and focus our time and resources on a concentrated portfolio to maximize investment outcomes,” said Mr. Sutton.
In addition to its core investment strategy, Liftout will soon launch a second strategy to identify and invest with up-and-coming private equity professionals. This “NextGen” strategy will provide the resources and backing necessary to close lower middle market buyout transactions on a stand-alone basis as a bridge for these professionals to form their own firms.
Liftout Capital is headquartered in Denver.
© 2023 Private Equity Professional | January 11, 2023
