Investment Strategy

Mill City maintains a highly focused investment strategy based on picking our spots carefully and focusing on situations on which our collective relationships, industry experience, and transactional expertise can best be brought to bear.  We believe that success in the world of middle market private equity investments and buyouts requires a higher degree of specialization and focus and that the generalist approach to this market has become outdated.

Middle Market Businesses

Mill City seeks control-oriented equity investments in middle market businesses, which we generally define as companies with earnings before interest, taxes, depreciation, and amortization (“EBITDA”) of at least $5 million and generally less than $25.0 million.  We will consider opportunities involving smaller companies as add-on acquisitions for existing portfolio companies and occasionally as stand-alone investments if there is a clear industry consolidation opportunity.

Midwestern U.S. and Central/Western Canada Focus

A key element of our investment strategy is our focus on investments in companies based in the Midwest, with a particular emphasis on businesses located in the seven Upper Midwestern states of Minnesota, Wisconsin, Iowa, North Dakota, South Dakota, Nebraska and Illinois. 

focus map

Our geographic focus offers many advantages, including:

  • Access to an extensive network of relationships throughout the region developed by our team over many years of experience
  • Ease of communication and face-to-face interaction with management teams of our portfolio companies
  • The geographic region is home to numerous successful middle market businesses, many of which are national and even worldwide market leaders in their respective market niches.

Value-Added Approach to Ownership

We believe that our highly focused investment approach enables us to be effective owners and investors for our portfolio companies.  By investing in companies in our region in industries we understand well, we are well positioned to apply the skills, experiences, and resources of our team to assist the management teams of our portfolio companies.  The assistance and guidance we provide can range from industry perspective and contacts, assistance with sourcing strategic add-on acquisitions for portfolio companies, and general Board-level guidance related to strategic growth initiatives, lean manufacturing, and the like.