IVCA Membership Profile: The Edgewater Funds

IVCA Membership Profile: The Edgewater Funds

September 27, 2017

We continue our IVCA newsletter feature of membership profiles, which are designed to connect VC and PE associates with both more information and the personality of the firms within the IVCA. Next up is The Edgewater Funds, a a Chicago-based private equity firm with $2.6 billion in committed capital. Edgewater provides capital and resources to lower middle market companies to help accelerate their growth and market leadership.

IVCA Member Profile: The Edgewater Funds

Representative: John Malloy, Principal

WHICH INVESTMENTS OF THE LAST COUPLE YEARS ARE YOU MOST PROUD OF AND WHY?

The Edgewater Funds: Edgewater partners with successful, proven executives to pursue ‘buy and build’ acquisition strategies in industries that have positive growth dynamics, fragmentation and clear exit opportunities. For example, our current investments in Bolder Healthcare Solutions, a leading revenue cycle management business; Confluent, a physical therapy company; and Industrial Services Solutions, a provider of industrial repair and maintenance solutions. These investments have all followed this model and have grown earnings by several multiples during our ownership. We are always on the lookout for accretive acquisitions at our portfolio companies.

WHAT RECENT EXITS HAS THE FIRM COMPLETED, AND WHY DID IT WORK OUT FOR THE BUYERS?

The Edgewater Funds: Our recent exits include SPL, Inc., which is a leading provider of critical outsourced hydrocarbon measurement, analysis and reporting services for the oil and gas industry; and Dental Services Group, the largest network of dental laboratories in the United States. Both companies were sold to highly reputable private equity firms that have continued the growth strategies fostered by Edgewater.

IN YOUR MOST RECENT INVESTMENTS, WHAT BUSINESSES ARE YOU FOCUSING ON, AND WHY IS THAT A GOOD FIT FOR THE FIRM?

The Edgewater Funds: Edgewater invests across a range of sectors, including industrial, healthcare, business services and technology. We seek investments in companies with a track record of profitable growth that we can accelerate through a combination of organic initiatives and acquisitions. Edgewater invests in sectors were we have deep experience and relationships. We partner with existing management teams as well as executives with a proven track record of creating value.

WITHIN YOUR INVESTMENT/FUND COMMITTEES, WHAT ONE QUESTION IS ALWAYS ASKED ABOUT ANY COMMITMENT TO AN INVESTMENT?

The Edgewater Funds: ‘How can Edgewater’s resources enhance the value of this investment?’

IF YOUR FIRM WERE TO BE CHARACTERIZED BY A WELL-KNOWN MOVIE, WHICH ONE WOULD IT BE AND WHY?

The Edgewater Funds: I would compare Edgewater to the movie ‘Major League.’ We pride ourselves on building companies by assembling great teams and putting in hard work. We often start out small and invest in overlooked companies, then exit once we’ve made it to the next level and garnered the attention of many ‘fans.’

For more information on The Edgewater Funds, go to www.EdgewaterFunds.com