MPE Partners
Private equity firm behind acquisition vehicle MPE Bidco, focuses on investing in lower middle-market companies across the U.S. industrial and commercial sectors.
MPE Partners, a private equity firm with offices in Cleveland and Boston, was established in 2012. The firm emerged from Morgenthaler, a venerable name in the investment industry, with the team previously managing the private equity buyout funds for Morgenthaler. The founding partners at MPE—Peter Taft, Karen Tuleta, Joe Machado, and the late Mark Filippell—brought with them a continuation of the investment strategy they had honed for years. This strategy is centered on acquiring and growing lower middle market companies. Specifically, MPE targets businesses with enterprise values ranging from $25 million to $150 million.
The firm focuses its investment activities on high-value manufacturing and commercial & industrial services sectors. Within these broad categories, MPE has developed expertise in specific sub-sectors such as industrial technology, specialty chemicals, and precision manufacturing, among others. Their approach is not one of passive investment; instead, they engage in control-oriented equity investments and recapitalizations. MPE Partners positions itself as a hands-on partner for business owners and management teams, aiming to provide both capital and strategic resources to accelerate growth. This collaborative model is designed to support companies in scaling their operations, entering new markets, and achieving significant milestones post-acquisition.
The business model revolves around a buy-and-build strategy, identifying promising companies and actively participating in their development to create long-term value. MPE serves a clientele of entrepreneurs and family-owned businesses who are often seeking a transition or a partner for their next phase of expansion. The firm has a history of successfully closing multiple funds, including MPE Partners II, which closed at $317 million, and MPE Partners III, which closed at its hard cap of $420 million in 2020. Recent activities include the acquisition of Mid-States Fitness, a franchisee of Planet Fitness, and the sale of portfolio company Bettcher Industries to KKR, underscoring their active management and realization cycle.
Keywords: private equity, lower middle market, buy and build, industrial services, high-value manufacturing, recapitalizations, business transition, investment fund, portfolio management, control investments