L Squared Capital Partners
L Squared Capital Partners is a Newport Beach-based private equity firm founded in 2014 that invests $50M-$250M in North American middle-market companies across Education Technology, Tech-Enabled Services & Software, and Industrial Technology & Services, managing over $5.3 billion across five funds.
- Company typePrivate
- Founded2014
- HeadquartersChicago, United States
- Headcount11–50
- GTM typeB2B
- OfferingServices
What L Squared Capital Partners does
L Squared Capital Partners is a Newport Beach, California-based private equity firm founded in July 2014 by five investment professionals (Jeff Farrero, Robert P. Healy, Sean Barrette, Randall Hunt, and Adam Kimura) who previously worked together at Chicago Growth Partners. The firm pursues long-term buyout, recapitalization, and founder-liquidity investments in North American middle-market companies with enterprise values of $50M to $500M+ and EBITDA of $5M to $50M+, targeting a 15%+ annual growth profile and majority ownership positions. L Squared concentrates on three vertical sectors: Education Technology (early childhood, K-12, higher-education operators and software), Tech-Enabled Services & Software (BPO, SaaS, IT outsourcing, data management), and Industrial Technology & Services (precision components, environmental monitoring, specialty chemicals, aerospace and defense). Since founding, the firm has raised five private equity funds totaling over $5 billion in commitments and built a diversified platform portfolio of approximately 14 active operating companies pursuing aggressive buy-and-build strategies (collectively completing 20+ add-on acquisitions annually).
The firm's core "product" is its investment platform architecture, which combines sector specialization with a repeatable consolidation thesis. Representative platforms include BTX Precision (precision components consolidation, 10 acquisitions since 2023), CogneSense (environmental measurement and protection, 5 acquisitions), Netrio (managed IT and cybersecurity, 4 acquisitions including Agio with GenAI capability), GSI Group Holdings (laboratory consumables, 4 acquisitions including GenesisBPS and Globe Scientific), Kano Laboratories (specialty chemicals for industrial MRO with the Kroil and DeoxIT brands), Crane 1 (overhead crane MRO), Foundant Technologies (merged with SmartSimple for philanthropy software), and Functional Devices (building automation and emergency lighting, anchored by the RIB brand). Education Technology platforms include Heggerty (early-childhood literacy with Literably add-on), TeachTown (special education), Sterling Trading Tech (financial trading infrastructure), and FineLine Technologies (variable data and RFID labels). Recent Fund IV platform Ergo extends the tech-enabled services reach into geopolitical and strategic intelligence.
L Squared generates revenue through private equity fund management, collecting management fees on committed capital and performance fees (carried interest) on portfolio exits. The firm is distinguished by a unique family-office-dominated limited partner base that supports longer-duration capital and reduces short-term return pressure relative to traditional institutional PE structures. Management teams of portfolio companies typically co-invest alongside L Squared, aligning incentives. Distribution is direct: the firm sources deals through its own industry relationships and partners with management teams rather than through intermediaries. Supporting capital partners include BMO Sponsor Finance, Apogem Capital, Varagon Capital Partners, New Canaan Funding, and HarbourVest Partners; financial advisors include Raymond James, Piper Sandler, William Blair, and Houlihan Lokey. The firm operates from a single Newport Beach headquarters with approximately 20 investment professionals.
L Squared Capital Partners firmographics
Firmographics- Name
- L Squared Capital Partners
- Legal name
- L Squared Capital Partners
- Website
- https://lsquaredcap.com
- Company type
- Private
- Founded year
- 2014
- Operating status
- Operating
- Headcount range
- 11–50 employees
- Short description
- L Squared Capital Partners is a Newport Beach-based private equity firm founded in 2014 that invests $50M-$250M in North American middle-market companies across Education Technology, Tech-Enabled Services & Software, and Industrial Technology & Services, managing over $5.3 billion across five funds.
- Ownership category
- akta.pro rank
L Squared Capital Partners industry classification
Industry- Product category
- Private Equity
- NAICS
- Funds, Trusts, and Other Financial Vehicles (525), Other Investment Pools and Funds (5259), Other Financial Investment Activities (5239)
- SIC
- Investment Advice (6282)
- akta.pro primary industry
- Sector-Focused Venture Capital (Vertical Specialists) (FSANAAAD)
- akta.pro secondary industry
- Late-Stage Venture Capital (Series C+) (FSANAAAC)
Keywords
Where L Squared Capital Partners is headquartered
LocationHeadquarters
- HQ city
- Chicago
- HQ country
- United States
- HQ region
- North America
Offices2 records
Markets served
L Squared Capital Partners business model
Business model- GTM type
- B2B
- Offering type
- Services
- Cost components
- Personnel, Operations, Marketing or Sales, Others
Revenue model
- Private Equity Fund Management: L Squared generates revenue through private equity fund management, collecting management fees on committed capital and performance fees (carried interest) based on portfolio company profitability and exits. The firm's unique family office investor base enables long-term value creation focused on revenue and earnings growth rather than financial engineering.
Go-to-market motion1 record
Distribution channels1 record
Marketing channels3 records
L Squared Capital Partners product offering
Product offeringCore offering
L Squared Capital Partners is a private equity firm that raises and manages investment funds to make long-term, control-oriented equity investments in North American middle-market companies. The firm invests $50–$250+ million per transaction in companies with $50–$500+ million enterprise value and $5–$50+ million EBITDA across Education Technology, Tech-Enabled Services & Software, and Industrial Technology & Services, pursuing a buy-and-build strategy with platform investments and add-on acquisitions.
Product overview
L Squared Capital Partners operates as a private equity investment firm that has built multiple platform companies across three core sectors: Education Technology, Tech-Enabled Services & Software, and Industrial Technology & Services. The firm's investment strategy centers on consolidating fragmented markets through platform investments and add-on acquisitions. Key current platforms include Functional Devices (building automation with RIB brand), Kano Labs (specialty chemicals), BTX Precision (precision components), Cognesense (environmental technology), Ergo (geopolitical intelligence), Netrio (managed IT services), GSI Group (laboratory consumables), Foundant Technologies (philanthropy software), Heggerty (literacy solutions), Sterling Trading Tech (trading technology), SignUpGenius (event management), Crane 1 (crane services), and FineLine Technologies (variable data solutions). Each platform pursues an active buy-and-build consolidation strategy with multiple add-on acquisitions.
Differentiator
Problem solved
Functional benefit
Products and services
- L Squared Capital Partners III (Fund III) Private equity fund that makes long-term control investments in North American middle-market companies in Education Technology, Tech-Enabled Services & Software, and Industrial Technology & Services. The fund collects management fees on committed capital and carried interest on exits, targeting $50–$250+ million equity checks per transaction.
- L Squared Capital Partners IV (Fund IV) Fourth private equity fund continuing L Squared's long-term buyout and recapitalization strategy in middle-market companies across the firm's three core sectors. Sized at $840 million in commitments.
- L Squared Capital Partners V (Fund V) Fifth private equity fund of L Squared Capital Partners, closed at $2.0 billion hard cap with significantly oversubscribed demand and more than double the size of Fund IV. Supports growth investments across Education Technology, Tech-Enabled Services & Software, and Industrial Technology & Services, with approximately 9–10 new platform investments and additional add-on acquisitions planned.
- Aerospace, Space, and Defense (ASD) Investment Platform Dedicated investment platform within L Squared Capital Partners focused on aerospace, space, and defense opportunities, led by Operating Executive Philip Gunn as part of the firm's Industrial Technology & Services vertical expansion.
Quantifiable outcome
- Successfully completed nine exits since formation in 2014
- +1 more outcomes
Companies that use L Squared Capital Partners
Customer profileSegments3 records
Ideal customer profiles2 records
L Squared Capital Partners technology and API
TechnologyTechnology focussed No
API detail
- Has API
- No
- API docs
- API detail
Core technology
AI maturity
App detail
L Squared Capital Partners partnerships and signals
Strategic signalPartnerships
Four partnerships are on record, tiered core.
- Mark Fernandes (Functional Devices CEO)coreMark Fernandes, President and CEO of Functional Devices, co-invested alongside L Squared and will continue leading the business under the same leadership and identity.
- Ergo Management TeamcoreErgo's management team retained significant ownership stake in the company following L Squared's growth investment, underscoring their long-term commitment and alignment.
- BTX Precision Management (Rick McIntyre)coreRick McIntyre, CEO of BTX Precision, partnered with L Squared to build a world-class executive team and execute the consolidation thesis in the precision components sector. BTX Precision has completed nine acquisitions since June 2023.
- Pondera HoldingscoreExisting investor Pondera Holdings co-invested with L Squared in the recapitalization of Heggerty, contributing to the literacy solutions provider's next phase of growth alongside management.
Scale indicators7 records
Recent moves6 records
Expansion highlights5 records
L Squared Capital Partners competitors and assessment
Company assessmentDirect peers
- Pamlico Capital: Lower middle-market growth equity firm with similar target enterprise value range, multi-sector strategy, and partnership approach with management teams.
- LLR Partners: Sector-focused growth equity firm investing in technology and tech-enabled services. Directly comparable to L Squared in stage (growth/buyout), target size (middle market), and vertical mix; LLR was the acquirer of L Squared's Edlio exit.
- Quad-C Management: Lower middle-market growth equity firm investing in business services, healthcare, industrials, and technology. Comparable to L Squared on fund size, equity check range, and growth-stage middle-market focus.
- Trinity Hunt Partners: Growth-oriented private equity firm investing in business services, industrial, and consumer companies. Closely comparable to L Squared on stage, target enterprise value band, and partnership-driven investment approach.
- Sterling Group: Operationally focused middle-market PE firm investing in industrial, distribution, and business services. Comparable on industrial-services vertical focus, lower middle-market target size, and buy-and-build methodology.
- Periscope Equity: Chicago-based tech-enabled services PE firm. Highly comparable to L Squared on geographic base (Chicago ties for L Squared's founders via Chicago Growth Partners) and sector concentration in tech-enabled business services.
- Mainsail Partners: Growth equity firm focused on tech-enabled business services and software companies. Comparable to L Squared's tech-enabled services and software vertical on stage, check size, and partnership model.
- Frontier Capital: Growth equity firm investing exclusively in tech-enabled business services companies. Overlaps directly with L Squared's Tech-Enabled Services & Software vertical and similar equity check size.
Broad incumbents
- Thoma Bravo: Large-cap software-focused PE incumbent. Operates in adjacent tech-enabled services space but at materially larger scale and in larger enterprise-value targets than L Squared.
- Court Square Capital Partners: Middle-market PE firm with similar sector mix including technology, business services, and industrials. Comparable on stage and sector breadth, though slightly larger; Court Square was the acquirer in L Squared's Virtium exit.
Market position
Strengths5 records
Weaknesses5 records
Competitive moat4 records
Key risks6 records
Key highlights7 records
Customer concentration
L Squared Capital Partners financial estimates
Financial estimateRevenue estimate
Valuation estimate
L Squared Capital Partners leadership team
Management profileNumber of profiles
Profiles19 records
L Squared Capital Partners subsidiaries and ownership
Company hierarchySubsidiaries13 records
L Squared Capital Partners funding detail
Funding detailFunding overview
Funding rounds
Investors
Funding detail is available on the Subscription and Enterprise plan.Contact sales →
L Squared Capital Partners M&A and investment
M&A and investmentM&A9 records
Investments9 records
M&A and investment is available on the Subscription and Enterprise plan.Contact sales →
Frequently asked questions about L Squared Capital Partners
What does L Squared Capital Partners do?
L Squared Capital Partners is a private equity firm that raises and manages investment funds to make long-term, control-oriented equity investments in North American middle-market companies. The firm invests $50–$250+ million per transaction in companies with $50–$500+ million enterprise value and $5–$50+ million EBITDA across Education Technology, Tech-Enabled Services & Software, and Industrial Technology & Services, pursuing a buy-and-build strategy with platform investments and add-on acquisitions.
Is L Squared Capital Partners a public or private company?
L Squared Capital Partners is a private company. It is classified as founder individual operated bootstrapped and is currently operating.
When was L Squared Capital Partners founded?
L Squared Capital Partners was founded in 2014. It employs 11 to 50 people.
Where is L Squared Capital Partners based?
L Squared Capital Partners is headquartered in Chicago, United States, in the North America region.
How does L Squared Capital Partners make money?
One revenue line is on record: private Equity Fund Management.
Who are L Squared Capital Partners's main competitors?
Direct peers on record are Pamlico Capital, LLR Partners, Quad-C Management, Trinity Hunt Partners, Sterling Group, Periscope Equity, Mainsail Partners and Frontier Capital. Broad incumbents are Thoma Bravo and Court Square Capital Partners.
Does L Squared Capital Partners have an API?
No public API is recorded for L Squared Capital Partners.
What industry is L Squared Capital Partners in?
L Squared Capital Partners's product category is Private Equity. Its primary akta.pro industry code is FSANAAAD, Sector-Focused Venture Capital (Vertical Specialists), with a secondary code of FSANAAAC, Late-Stage Venture Capital (Series C+). Its NAICS code is 525 and its SIC code is 6282.