What Edgewater Funds does

Edgewater Funds is a Chicago-based private equity firm founded in 2001 that operates through its Edgewater Growth Capital Partners platform. The firm has raised over $4 billion in cumulative capital commitments across five fund vintages (Edgewater Growth Capital Partners I through V) and partners with management teams of high-quality middle-market companies to accelerate growth through capital, operational expertise, and a network of proven business leaders via its Executive Advisory Board. Its portfolio spans multiple industries including healthcare revenue cycle management (Bolder Healthcare Solutions, Elevate Patient Financial Solutions), industrial services (Industrial Service Solutions), commercial HVAC (Silver State, Nationwide Cooling Group), aerospace manufacturing (Spartan Aerospace Group, Westar), cybersecurity (Haystax Technology), water infrastructure (LMK Technologies, Triwater Holdings), wireless infrastructure (Vertical Bridge Holdings), and flow control (Flow Control Management). Notable historical exits include the sale of Westar Aerospace & Defense Group to QinetiQ/Carlyle for approximately $130 million in 2004 and the sale of FishNet Security.

The firm's revenue model follows standard private equity economics: recurring management fees typically in the 1.5-2.0% range on committed or net invested capital, supplemented by performance-based carried interest (typically around 20% of profits above a hurdle rate) on successful portfolio exits. Distribution is relationship-driven rather than channel-based, with deal sourcing flowing through limited partner introductions, advisor referrals, industry conferences, and direct executive outreach. The firm operates with a lean investment team of 11-50 professionals from its headquarters at 900 North Michigan Avenue in Chicago, and is registered with the SEC as an investment adviser. As of mid-2026, Edgewater remains an active investor, with Fund V continuously deploying capital through both new platform investments (most recently AFT Industries in April 2026) and add-on acquisitions across existing portfolio companies.

Name

Edgewater Funds

Legal name

Edgewater Services, LLC

Website

https://edgewaterfunds.com

Company type

Private

Founded year

2001

Operating status

Operating

Headcount range

11–50 employees

Short description

Edgewater Funds is a Chicago-based private equity firm founded in 2001 that manages over $4 billion in capital commitments across five fund vintages, partnering with management teams of middle-market companies in healthcare RCM, industrial services, HVAC, aerospace, cybersecurity, and water infrastructure to accelerate growth.

Ownership category

akta.pro rank

Product category

Private Equity / Growth Capital Investment Management

NAICS

Portfolio Management and Investment Advice (523940), Portfolio Management and Investment Advice (52394), All Other Financial Investment Activities (52399)

SIC

Investment Advice (6282), Finance Services (6199)

akta.pro primary industry

Technology & Software Growth Equity (FSANACAA)

Keywords

• Private equity investment
• Growth capital
• Middle market investing
• Portfolio management
• Buyout partnership

Headquarters

HQ city

Chicago

HQ country

United States

HQ region

North America

Offices1 record

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Operations, Marketing or Sales, Others

Revenue model

1. Management Fees: Private equity firms typically charge annual management fees on committed capital under management, typically ranging from 1.5-2% of assets under management.
2. Carried Interest: Performance-based carried interest from successful portfolio company exits, typically 20% of profits above a hurdle rate.

Go-to-market motion1 record

Distribution channels1 record

Marketing channels3 records

Core offering

Edgewater Funds is a Chicago-based private equity firm that invests growth capital in high-quality middle market companies through its Edgewater Growth Capital Partners fund platform. The firm partners with management teams to accelerate business growth by providing capital, operational expertise, and access to a broad network of proven business leaders via its Executive Advisory Board. Since 2001, Edgewater has raised over $4 billion in capital commitments across multiple fund vintages (I through V) and built portfolio companies in healthcare revenue cycle management, industrial services, aerospace, HVAC, water treatment, cybersecurity, and wireless infrastructure.

Product overview

Edgewater Funds operates as a Chicago-based private equity firm offering investment management services through its Edgewater Growth Capital Partners platform. The firm has raised over $4 billion in capital commitments since 2001 and focuses on partnering with management teams to accelerate growth in high-quality middle market companies. Rather than offering a software product suite, Edgewater Funds provides private equity investment services, deploying capital across various sectors including industrials, healthcare revenue cycle management, aerospace manufacturing, and facility services.

Differentiator

Problem solved

Functional benefit

Products and services

• Edgewater Growth Capital Partners Edgewater Growth Capital Partners is the firm's primary private equity fund vehicle that deploys growth capital into high-quality middle market companies, partnering with management teams to accelerate business growth through capital infusion, operational expertise, and strategic network access. Target investments span healthcare RCM, industrial services, aerospace manufacturing, HVAC/R, water treatment, cybersecurity, and wireless communications infrastructure.

Quantifiable outcome

• Multiple successful exits including Westar ($130M to QinetiQ), FishNet Security, and various portfolio companies

Named customers6 records

Segments1 record

Ideal customer profiles2 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Partnerships

Two partnerships are on record, tiered core portfolio.

• Bruce Parker / U.S. Logistics Solutionscore portfolioStrategic or Co-development Partner · 1 November 2013Edgewater partnered with Bruce Parker, former Chairman and CEO of AirNet Systems, to build a logistics platform company U.S. Logistics Solutions, LLC.
• Bill Van Vleet / Haystax Technologycore portfolioStrategic or Co-development Partner · 1 April 2013Edgewater partnered with Bill Van Vleet (former CEO of Applied Signal Technology) to build Haystax Technology, a next-generation intelligence and cybersecurity company.

Scale indicators2 records

Recent moves6 records

Expansion highlights4 records

Broad incumbents

• KKR & Co. Global alternative asset manager with dedicated growth equity strategies — broader incumbent competing for institutional capital and growth-stage investment opportunities.
• Madison Dearborn Partners: Chicago-based, larger-cap private equity firm with broad sector coverage — a larger regional incumbent operating in adjacent middle-to-upper-middle-market territory with overlapping sourcing networks.
• Bain Capital: Large multi-strategy alternative asset manager with a growth equity arm — a broad incumbent in the private equity universe that competes for similar management teams and growth-stage deals.

Direct peers

• Frontenac Company: Chicago-based private equity firm investing in lower-middle-market companies across consumer, industrial, and services — directly comparable given shared Chicago headquarters and middle-market orientation.
• LLR Partners: Lower-middle-market growth equity investor focused on technology, healthcare, and business services with an operator network model — comparable in fund size, growth-equity orientation, and partnership-style approach.
• CIVC Partners: Chicago-based middle-market growth equity firm partnering with management teams across business services, healthcare, and industrial sectors — directly comparable to Edgewater's lower-middle-market focus and Chicago base.
• Sterling Group: Houston-based operationally-focused middle-market private equity firm investing across industrial, distribution, and services platforms — comparable in check size, sector breadth, and operational value-add approach.
• Trinity Hunt: Middle-market private equity firm partnering with founder-led businesses across healthcare, industrial, and business services — closely aligned with Edgewater's middle-market, management-partnered model.

Regional players

• Prairie Capital: Chicago/Midwest-focused lower-middle-market private equity firm — a regional peer operating in Edgewater's home geography with comparable middle-market investment criteria.

Emerging players

• Plainsboro Capital: Lower-middle-market growth equity sponsor — emerging player with overlapping sector coverage and similar management-partnered investment style, though smaller in committed capital.

Market position

Strengths4 records

Weaknesses4 records

Competitive moat5 records

Key risks4 records

Key highlights5 records

Customer concentration

Revenue estimate

Valuation estimate

Number of profiles

Subsidiaries10 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A1 record

Investments19 records

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Edgewater Funds