Investment Focus

B2B Tech-Enabled Services
Selective investments

We are selective in the investments we make. We invest in profitable, tech-enabled service companies that have outsized potential. We invest in companies who are driven to make a difference, and share our foundational belief of doing the right things for the right reasons.

Our approach

Our unique approach to personal engagement has supported our partnership with 70 B2B Tech-Enabled Services companies (including 14 platform acquisitions and 56 follow-on acquisitions).

Investing in what we know

Healthcare. Technology Services. Data-driven Marketing. Renewable Energy.
Lower Middle Market

$5-30 million

in revenue

$1-5 million

EBITDA at time of investment

Investment Criteria
  • Majority recurring revenue
  • Strong EBITDA margins
  • Achieving organic double-digit revenue growth
  • Alignment of values and mission amongst partnership and shareholders
Transaction

$10-50 million

initial transaction size of control investments

Healthcare Tech/Services
  • Healthcare IT
  • Pharmacy Software/Services
  • Niche Hospital Management Software
  • Revenue Cycle Management
  • IT Managed Services
  • Enterprise Software
  • Data Analytics
  • Education
Renewable Energy
  • Energy Retailers
  • Energy Procurement
  • Recurring Asset Management Services for Solar
  • Energy Efficiency Software and Services
  • Grid-related technology
  • Renewables Asset Management and Operations & Maintenance
  • Sustainability Software and Services
Data-driven Marketing
  • Multi-channel Marketing in Specific Niches

Mergers & Acquisitions

We are experts in the art of the acquisition and seek to grow companies faster than organic growth alone will allow. When you partner with 424 Capital, you gain the support of an experienced M&A team whose job it is to help you expand the attributes of your company through acquiring smaller businesses, helping to create product line extensions, add complimentary intellectual capital, and ultimately build value. We source, diligence, finance and close 100% of our companies’ acquisitions – allowing you to stay focused on growing your business.