World Economic Forum: Fueling the US economy’s middle market growth engine by Andrew Weinberg

NEW YORK, April 9, 2018 – Large, publicly traded companies in the US tend to attract the lion’s share of media, academic and public policy attention. We read and watch something about Facebook, Amazon, Google, Boeing, GE or other Fortune 500 companies on a daily basis.

With all the attention being paid to the large-cap, multinational public companies, U.S. middle market firms tend to fly under the radar. The lack of emphasis and support for middle market enterprises is not unique to the US. One of the few markets where this is not the case is Germany, which celebrates its so-called “Mittelstand” companies. These businesses account for more than 60% of the country’s jobs and are highly regarded as investors in facilities, equipment and talent.

In fact, middle market companies are vital contributors to most developed countries’ GDP, and providing more support for such companies in the US is both a significant challenge and a compelling opportunity. Middle market businesses should be recognized by investors and policy makers for what they truly are – powerful engines of the US economy – and more can and should be done to help these businesses thrive and grow through the application of capital, operational expertise and a sharp strategic focus.

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Zach Kouwe/Shree Dhond
Dukas Linden Public Relations
212-704-7385
brightstar@dlpr.com

Mergers and Acquisitions: “Greatest generational transfer of wealth ever seen” benefits Brightstar’s $710M debut fund by Mary Kathleen Flynn

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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MEDIA CONTACT:

Zach Kouwe/Shree Dhond
Dukas Linden Public Relations
212-704-7385
brightstar@dlpr.com

Private Equity Wire: Brightstar’s ‘us and us’ investment model to mid-market US businesses strikes note with investors by James Williams

NEW YORK, April 5, 2018 – In the US alone there are more than 200,000 middle market companies with revenues between USD10 million and USD1 billion. If one narrows that range to USD50 million to USD1 billion in revenue, there are 32,000 businesses, with around 15 times as many private businesses to public businesses.

That’s a pretty big engine of economic growth and one that Brightstar Capital Partners is training its investing and operating talents on to seek out good US businesses with a clear growth trajectory.

“Our strategy has always been about how to be more than a capital provider to middle market, closely held companies, either family-owned or backed by entrepreneurs by adding a second component; namely, how to provide much needed operational and strategic resources to those companies by virtue of our partnership,” explains Andrew Weinberg (pictured), Brightstar’s Founder and Managing Partner.

These types of companies face many challenges going forward, from next generation leadership, to attracting executive talent beyond the founding family to responding to needs in the market. Data suggests there is an estimated USD30 trillion to USD40 trillion of wealth that will be passed on from the baby boomer generation in the US to their heirs over the next 25 to 30 years.

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MEDIA CONTACT:

Zach Kouwe/Shree Dhond
Dukas Linden Public Relations
212-704-7385
brightstar@dlpr.com