NEW YORK, April 9, 2018 – Middle market private equity firm Brightstar Capital Partners recently closed its inaugural fund at $710 million. New York-based Brightstar, which invests up to $250 million in businesses, has already invested in two portfolio companies: logistics technology provider Global Resale and water supplier Texas Water Supply Co. We asked managing partner Andrew Weinberg to tell us more about the firm’s investment thesis and the opportunities he sees for M&A this year.
Why is now a good time to launch a new PE firm?
Brightstar Capital Partners was founded in 2015, and we recently closed on more than $710 million for our inaugural private equity fund program. The timing of our close takes place against the backdrop of what will most likely be the greatest generational transfer of wealth ever seen to date. Estimates for this wealth transfer in the U.S. alone range from $10 trillion over the next decade to $25-30 trillion in the next 25-30 years. As family and closely-held businesses navigate this wealth transfer they will be faced with challenges arising from an ever-changing operating environment, pressures to maintain sustainable growth and their competitive positions, not to mention the inherent issues associated to the ownership group.
There are roughly 200,000 companies in the U.S. with revenues from $10 million to $1 billion, most of which are closely held or family controlled. Within the middle-market universe, there are 32,000 businesses with revenues between $50 million and $1 billion, and these companies are vital to the U.S. economy, representing 16 times the number of public companies with the same revenue profile.
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