MiddleGround Capital

2023's market conditions required tenacity and creativity to succeed, and we're proud of the work our team did to make an impact throughout the year. Last year, we returned $661.1 million to investors, gave back to our communities with the new MiddleGround 501c3 Charitable Foundation, and deployed $786 million of fund capital! As our Founding and Managing Partner, John Stewart, said, “…a difficult market is NOT an excuse to underperform. There will always be down markets, and truly skilled professionals can show their true capability by succeeding in these times. I’m incredibly proud of my team. They thought outside the box, returned capital to our investors, were tenacious in deal sourcing, and maximized operational improvements throughout the year.” In 2023, we prioritized creating equity value for our investors, refining our leadership skills, and strengthening our operational offerings. These actions laid the groundwork for continued success. Read our 2023 Year in Review: https://bit.ly/4awid0b #privateequity #manufacturing

As we celebrate #IndependenceDay, we reflect on the spirit of #innovation that defines our nation. At MiddleGround, we pride ourselves on investing in American #manufacturing and are honored to work alongside the hard-working people who drive our economy forward. Their resilience is the backbone of our nation's prosperity. This Fourth of July, let’s raise a flag to the achievements and future of American manufacturing. Happy Independence Day!

Just like dating, the #privateequity process is all about compatibility. In our latest #podcast episode, Dyana Baurley, our Head of NA Business Development, recaps her recent interview with Dave Bookbinder on the Behind The Numbers podcast and highlights crucial considerations for business owners looking for their perfect match: ➡️ Finding the Right Fit: When selling your business, you're not just handing over the keys, you're interviewing potential buyers to find someone who aligns with your vision. ➡️ Hands-On vs. Hands-Off: There's a spectrum in private equity from firms that hand over a check and step back, to those that roll up their sleeves and partner with you on the shop floor. Kknowing what you need can make all the difference. ➡️ Choosing the Right Partner: The right partner will provide more than just capital. They’ll bring expertise, strategic insight, and a commitment to helping your business grow and thrive. Choosing the right private equity partner is one of the most important decisions a business owner can make. Listen to the full episode to hear more: https://bit.ly/4cvnp5e #manufacturing

Scarcity breeds innovation! When deal flow slows down, the only way to keep a consistent stream of transactions is to think outside the box! By exploring creative solutions such as continuation vehicles and take-privates, we're uncovering untapped potential. Dyana Baurley, our Head of NA #BusinessDevelopment, highlighted, "The last several quarters have required intense focus, strategic thinking, and creativity. However, these challenges make our successes, like the Starrett acquisition, even more rewarding. This transaction, following our first CV with Castle Metals and Banner Industries, shows that deviating from old playbooks can lead to extraordinary results." The acquisition of the (previously publicly held) The L.S. Starrett Company showcases our ability to thrive even in challenging markets. #privateequity #innovation

Rev your engines, Lexington! 🚗💨 On Saturday, July 6th, we're hosting "Cruisin' for a Cause" - a family-friendly car show with proceeds going to Lexington Habitat for Humanity. As a Lexington-based firm, we’re dedicated to giving back to our local #community. Come celebrate Kentucky’s vibrant car culture at the Valvoline World Headquarters for a day of music, food trucks, and family-friendly activities! Purchase tickets here: https://bit.ly/4biNpzO #privateequity #culture

Business owners envision #privateequity firms as villainous corporate raiders but Dyana Baurley, our Head of NA Business Development, explains that companies and workers in our portfolio are treated like assets and not expendable resources. Just as you wouldn't buy a house only to tear down the rooms that drew you in, we invest in businesses for their strong operational foundations and #manufacturing know-how. Learn more about this in our latest #podcast episode, where Dyana recaps her recent interview with Dave Bookbinder on the Behind The Numbers podcast. Dyana’s business-owner-focused insights will reshape how you view private equity and show that we’re not all ‘big bad guys’ after all. Full podcast here: https://bit.ly/3zbi58F

Some pairs just make sense: peanut butter and jelly, cheese and wine, Castle Metals and Banner Industries. Last week, Ryan McComb, a Managing Director on our Transaction Team, sat down with Michael Schoeck from PE Hub to discuss our transformative Castle/Banner continuation vehicle and the add-on opportunities ahead. "MiddleGround had been chasing Castle for years and decided to pivot from selling Banner to acquiring Castle and merging the business together to recognize the significant synergies the companies presented," said Ryan. Since acquiring Banner, we've made impactful add-ons with Supra Alloys, Edge International, and NKS, broadening our capabilities in aerospace and defense with high-grade titanium and medical-grade cobalt chrome. Our current focus is identifying add-ons that enhance our #manufacturing capabilities, provide entry into new markets, and increase our value proposition. With 1,500 employees across 40 facilities globally, the Castle/Banner platform aims to be a one-stop shop for metal fabrication needs - serving everyone from smaller contract manufacturers to major OEMs like Airbus and Boeing. Read the full interview here: https://bit.ly/3XsNQEn #privateequity

Xtrac Ltd's groundbreaking gearbox technology is turning heads (and wheels) at the highest levels of motorsport! Andrew McDougall's, Xtrac’s Principal Design Engineer, revolutionary design makes shifts ultra-fast, reduces the electrical demand on race cars, and won him the prestigious 2024 Louis Schwitzer Award! The Xtrac Electric Servo Actuator is a game changer in motorsports and has been adopted by the NTT INDYCAR Series. Congratulations to Andrew and the team, Xtrac has been a driving force within our portfolio, propelling #automotive #innovation and engineering capabilities forward on the world’s biggest stages. Read more here: https://bit.ly/3x3GGvj #privateequity

Is it just us, or is there a hint of maple and a touch of toasted oak in the air? It must be National Bourbon Day! As a Kentucky-based firm, bourbon holds a special place in our hearts. This iconic spirit represents tradition, craftsmanship, and the essence of the Bluegrass State. On National Bourbon Day, we raise a glass to the art of distilling and the rich heritage surrounding America's native spirit. Cheers! #KentuckyProud #NationalBourbonDay #privateequity

Rags to riches, Bumpers to finance, Whatever you want to call it, it’s the unconventional path of John Stewart who started as a manufacturer at Toyota and ended up Managing Partner at MGC. In our recent #podcast, John opens up to Sean Mooney, BluWave, LP's Founder and CEO, about: ➡️ Ditching his corporate career to bet on himself and the struggles that came with it (including funding the business with checks from his personal bank account). ➡️ The unique strategies (like underwriting foquity value creation from operational improvements and prioritizing actual EBITDA) that scaled MiddleGround to a $5B AUM+ firm in six years!! John’s journey is one of perseverance and grit, proving that the most successful stories in high finance don’t have to start on Wall Street. Listen to the full podcast here: https://bit.ly/3X18jzG #privateequity #innovation