Top 8 Private Equity Firms In Philadelphia

When it comes to private equity firms in Philadelphia, the city offers a vibrant and dynamic landscape that hosts some of the most influential and successful players in the industry. For businesses seeking to grow, expand, or transform, partnering with the right private equity firm can be an essential step. Philadelphia, known for its rich history and thriving business environment, serves as a hub for private equity activity, especially in the middle market sector.

In this article, we will explore the top 8 private equity firms in Philadelphia, each distinguished by its unique strengths, investment strategies, and contributions to industries such as healthcare, technology, and financial services.

These firms, including Boathouse Capital, LLR Partners, and Susquehanna Growth Equity, are recognized for their flexible capital structures, growth-oriented approaches, and dedication to value creation. Whether you’re a founder-led company or a financial sponsor, understanding Philadelphia’s private equity landscape can guide you in making informed decisions about your business’s future.

1. LLR Partners

Investment Focus and Strategy

LLR Partners stands out for its focused investment strategy, specifically targeting the lower middle market within the technology and healthcare sectors. The firm’s approach is thesis-driven, utilizing its extensive experience and resources to identify and capitalize on promising business models and emerging market trends. LLR typically invests in companies with a minimum revenue of $10 million, deploying equity capital ranging from $50 million to $200 million.

This targeted strategy enables LLR to provide growth capital for initiatives such as expansions, recapitalizations, and buyouts. The firm works closely with its portfolio companies to define and execute impactful growth initiatives, fostering long-term success.

Significant Achievements and Portfolio Highlights

LLR Partners boasts a remarkable track record of achievements and portfolio highlights. A key milestone includes the successful closure of its seventh fund, LLR 7, at $2.45 billion.

Consistent with its focus on technology and healthcare investments, this fund has already supported several companies, including KEEPS, Nonstop Health, Soltis Investment Advisors, Suvoda, and TurboTenant. These investments underscore LLR’s commitment to backing companies with high growth potential and market leadership aspirations.

One notable example is LLR’s strategic growth investment in TruTechnologies, a leading provider of real-time clinical trial oversight solutions. This investment aims to accelerate TruTechnologies’ expansion and transform the management of clinical trials, showcasing LLR’s ability to support innovative solutions in the healthcare sector.

These accomplishments highlight LLR’s capacity to drive growth and create long-term value for its portfolio companies, solidifying its position as a top private equity firm in Philadelphia.

2. NewSpring Capital

Wide Range of Investment Verticals

NewSpring Capital stands out for its diverse and comprehensive investment strategy, spanning multiple verticals. The firm manages over $3.5 billion across five distinct investment strategies, including growth equity, control buyouts, mezzanine debt, and more. This broad approach enables NewSpring to partner with companies in dynamic industries such as technology and technology-enabled services, healthcare, consumer and business services, and financial services.

They specifically focus on sectors like financial technology, IT and telecom, business and government services, and tech-enabled healthcare services. This versatility allows NewSpring to cater to a wide range of business needs and growth stages, from founder-led startups to established family-run and owner-operated companies.

Impactful Regional Investments

NewSpring Capital has made a significant impact through its investments in the region. With over 250 investments, the firm boasts a proven track record of catalyzing growth and seizing compelling opportunities.

One example is NewSpring’s investment in Trio Mobil, a company pioneering AI and IoT solutions for workplace safety and efficiency, showcasing their commitment to innovative technologies. Another noteworthy example is their focus on companies within the tech-enabled healthcare sector, reflecting their dedication to transforming healthcare services through technological advancements. These investments not only demonstrate NewSpring’s ability to identify and support high-performing companies but also contribute to the economic and innovation landscape of the Philadelphia region.

3. Graham Partners

Industry Specialization and Approach

Graham Partners is a private investment firm specializing in technology-driven companies, with a focus on those innovating within the advanced manufacturing sector. Founded in 1988 by Steven Graham, the firm targets businesses that are driving product substitutions, raw materials conversions, and disruptions in traditional end markets. Graham Partners seeks companies with EBITDA ranging between $5 million and $50 million, offering flexible solutions through either control or minority capital investments.

This approach enables them to support a diverse range of industrial technologies and innovative products. By leveraging their extensive operating resources and industrial expertise, Graham Partners enhances the growth potential of the companies in their portfolio.

Notable Exits and Success Stories

Graham Partners boasts a strong track record of successful investments and exits. One notable example is their investment in Creative Mines, which was divested in June 2024. While specific details of this exit are not disclosed, it underscores Graham Partners’ ability to guide companies through significant growth phases and achieve successful outcomes.

Another example is their recent investment in Becklar, a company specializing in advanced monitoring and emergency response solutions. Becklar’s innovative technologies, such as personal health and safety solutions, fire and burglary protection, and remote video monitoring, highlight the kind of disruptive innovations Graham Partners actively supports and helps grow.

Beyond these specific cases, Graham Partners has completed over 160 acquisitions, joint ventures, financings, and divestitures since its inception. This extensive experience demonstrates their ability to identify, invest in, and nurture companies with strong growth potential, solidifying their position as a key player in the private equity landscape of Philadelphia.

4. Argosy Private Equity

Growth-oriented Investment Philosophy

Argosy Private Equity stands out for its growth-oriented investment philosophy, which is built on a principled and partnership-driven approach. Since its founding in 1990, the firm has concentrated on the lower middle market, leveraging its deep-rooted values and decisive strategies to create enduring value for its partners and investors. The firm’s approach is defined by a hands-on, collaborative methodology, ensuring alignment with the goals of its portfolio companies.

Argosy’s commitment to success is embodied in its mantra: “Less ego. More growth.” They actively engage with their partners, rolling up their sleeves to help them thrive.

Key Investments and Industry Presence

Argosy Private Equity has cultivated a strong portfolio through six funds, featuring over 135 platform investments and managing assets exceeding $1.1 billion. One of their standout investments is in Aerial, a manufacturer specializing in aviation technical sewing products and water survivability solutions, serving defense and law enforcement sectors.

Another notable investment is American Leather, Inc., a designer and producer of high-end, made-to-order upholstered home furnishings. More recently, Argosy invested in Barco Products, a company known for designing, manufacturing, and distributing commercial outdoor site furnishings and traffic safety products.

These investments highlight Argosy’s diverse industry presence, spanning specialized manufacturing, transportation and logistics, and other sectors.

Furthermore, Argosy’s healthcare-focused division, Argosy Healthcare Partners, collaborates with management teams to build market-leading platforms in the healthcare sector. This specialized focus reinforces Argosy’s commitment to driving growth and creating value across a broad range of industries, solidifying its role as a major player in Philadelphia’s private equity landscape.

5. Susquehanna Growth Equity

Focus on Technology and Innovation-driven Companies

Susquehanna Growth Equity (SGE) is a growth equity firm that specializes in software, data, and tech-enabled businesses. Founded in 2006, SGE is backed by Susquehanna International Group (SIG), giving it a unique edge to support growth-stage companies. The firm’s investment strategy revolves around partnering with top-tier technology and innovation-driven companies, offering flexible capital solutions without fixed time horizons.

This approach empowers entrepreneurs to maintain control over their company’s timeline and growth trajectory, aligning seamlessly with SGE’s entrepreneur-centric philosophy.

Major Contributions to the Tech Ecosystem

Susquehanna Growth Equity has made remarkable contributions to the tech ecosystem through its strategic investments and value creation initiatives. With over $4 billion invested in more than 100 companies, SGE boasts a diverse portfolio featuring prominent names like Avalara, Fundera, Glassbox, and GlobalTranz. These companies excel in areas such as indirect tax compliance, digital experience analytics, logistics technology, and supply chain management.

SGE’s dedicated Portfolio Value Creation team has been instrumental in generating over $650 million in incremental equity value in the past three years. Their support spans critical areas such as go-to-market strategies, mergers and acquisitions, and organizational development.

Beyond financial backing, SGE leverages its expertise and resources to help companies scale and innovate. For example, their investment in Glassbox has enabled the company to deliver state-of-the-art digital experience analytics tools, empowering large institutions to optimize customer journeys. Similarly, their investment in GlobalTranz has fueled disruptive innovation in the logistics sector, positioning the company as one of the largest freight brokerages in the United States.

6. Milestone Partners

Strategic Middle-market Investments

Milestone Partners is a seasoned player in the lower middle market private equity sector, with a history dating back to 1995. The firm is recognized for its strategic investments in established operating businesses, particularly those in the financial services, tech-enabled solutions, and tech-driven manufacturing sectors.

Milestone Partners specializes in making control equity investments, while also having the flexibility to make non-control investments selectively. Their investment criteria include companies with revenues ranging from $10 million to $150 million and EBITDA of up to $25 million, with transaction sizes typically between $25 million and $250 million.

The firm’s approach is defined by a relationship-driven methodology, where they work closely with management teams to foster growth. This collaborative strategy is supported by their in-house operating partners, who provide tailored operational, technical, and financial support.

Over the years, Milestone Partners has deployed over $900 million in capital and closed more than 100 transactions, showcasing their ability to execute complex deals and deliver exceptional returns for their investors.

Portfolio Diversity and Expertise

Milestone Partners maintains a diverse portfolio that highlights their deep industry expertise. They focus on companies with strong historical growth, solid operating margins, and sustainable competitive advantages such as intellectual property, exclusive customer relationships, or highly regarded branded products.

The firm prioritizes investing in market leaders or companies with the potential to become leaders in their industries. This emphasis on market leadership and competitive positioning is a cornerstone of their value creation strategy.

Their portfolio spans companies across financial services and tech-driven manufacturing. For example, their financial services investments often involve companies providing specialized financial solutions, while their tech-driven manufacturing investments focus on firms innovating in areas such as advanced materials and precision engineering. This diversified strategy enables Milestone Partners to leverage their extensive industry knowledge and operational expertise to drive growth and enhance the value of their portfolio companies.

7. Boathouse Capital

Flexible Financing Solutions

Boathouse Capital is renowned for its flexible and innovative financing solutions, tailored to meet the unique needs of lower middle market companies. By offering a combination of debt and equity investments, the firm can customize capital structures to align with the specific goals and requirements of each business. This adaptability is particularly advantageous for companies seeking growth capital, strategic acquisitions, recapitalizations, or refinancings.

One of Boathouse Capital’s standout features is its ability to provide both control and non-control ownership scenarios, making it a preferred partner for a wide range of businesses, including financial sponsors and founder-led companies.

Currently managing $350 million and investing out of a $230 million fund, Boathouse Capital focuses on high-quality lower middle market companies. Their investment criteria include businesses with revenues of at least $10 million, EBITDA of at least $2 million, and a track record of strong financial performance.

For software and SaaS companies, Boathouse Capital specifically targets firms with recurring revenues of at least $5 million and robust unit economics. This focused approach ensures that the capital provided is optimized for the company’s growth and sustainability.

Enhancing Value through Operational Improvements

Boathouse Capital’s investment philosophy extends beyond simply providing capital. The firm is deeply committed to enhancing the value of its portfolio companies through operational improvements. Their value-added services include expertise in M&A execution, sales acceleration, and human capital management. Additionally, they offer consistent strategic guidance to help businesses refine their go-to-market strategies, improve operations, and achieve inorganic growth through acquisitions.

By focusing on building sustainable and defensible business models, Boathouse Capital empowers its portfolio companies to unlock scale and achieve long-term success.

The firm’s lean and nimble team, boasting over 100 years of combined investing experience, ensures swift and informed decision-making. This agility, combined with their deep expertise across the balance sheet, allows Boathouse Capital to create bespoke structured solutions tailored to the unique needs of each company. Their partnership-first approach ensures alignment between the interests of management teams, owners, and investors, leading to exceptional outcomes for all stakeholders.

8. Inverness Graham

Investment Approach Centered on Niche Industries

Inverness Graham is an operationally focused private investment firm specializing in niche industries with high growth potential. The firm targets companies in advanced manufacturing, software, tech-enabled services, and healthcare, with a particular focus on sectors such as medical devices, dental consumables, bio/pharma consumables, and health & wellness.

This targeted approach enables Inverness Graham to leverage its deep industry expertise and resources to drive the growth and innovation of its portfolio companies.

Its investment criteria are highly specific, seeking companies with revenues between $10 million and $100 million and EBITDA up to $20 million. The firm also considers enterprise values under $200 million, with no size constraint for add-on acquisitions. This precise strategy allows Inverness Graham to identify and invest in market leaders or companies with the potential to become leaders in their respective niches.

Commitment to Building Market Leaders

Inverness Graham is dedicated to building market leaders through a repeatable model for value creation. The firm collaborates with exceptional leaders who have proven experience, offering business-building expertise and critical resources to help companies accelerate their growth. This includes operational support, strategic guidance, and access to a robust network of internal and external operating partners.

By providing this support, Inverness Graham helps its portfolio companies execute strategic platform builds and achieve their full potential.

The firm’s team has over $4 billion of principal investment experience across more than 100 transactions, showcasing its ability to respond quickly and decisively in transaction processes. Additionally, Inverness Graham maintains strong relationships with a variety of lenders, ensuring its portfolio companies have access to the financial resources necessary to drive growth. This comprehensive support system is a key factor in the firm’s track record of delivering liquidity and continued upside for management and founder-owner controlled recapitalizations.

Conclusion

In conclusion, the private equity landscape in Philadelphia is both vibrant and diverse. Leading firms such as LLR Partners, NewSpring Capital, Graham Partners, Argosy Private Equity, Susquehanna Growth Equity, Milestone Partners, Boathouse Capital, and Inverness Graham are paving the way with their unique investment philosophies, industry specializations, and strategic approaches to value creation.

Whether focusing on technology, healthcare, or advanced manufacturing, these firms excel at identifying and nurturing growth potential. They provide flexible financing solutions and drive operational improvements, making them invaluable partners for businesses seeking growth capital or strategic alliances. Understanding the strengths and approaches of these top private equity firms can be a critical step toward achieving long-term success.

By leveraging the expertise and resources offered by these firms, companies can accelerate their growth, expand into new markets, and establish sustainable market leadership.