424 Capital
424 Capital is a Wakefield, MA-based boutique growth capital firm making control equity investments of $10-50M in lower middle market B2B Tech-Enabled Services companies, primarily in Healthcare Technology, Renewable Energy, and Data-Driven Marketing, with a dedicated Strategic Finance Group supporting portfolio value creation.
- Company typePrivate
- Founded1998
- HeadquartersWakefield, United States
- Headcount11–50
- GTM typeB2B
- OfferingServices
What 424 Capital does
424 Capital is a boutique private growth capital firm headquartered in Wakefield, Massachusetts, that makes control equity investments in lower middle market B2B Tech-Enabled Services companies. The firm traces its lineage to Brook Venture Partners (founded 1998 by Fred Morris) and rebranded to 424 Capital in 2019 under Managing Partners Walter Beinecke, Kyle Stanbro, and Brennan Mulcahey. It deploys $10-50 million of equity per transaction into companies generating $5-30 million in revenue and $1-5 million in EBITDA, targeting a cadence of three platform investments per year and typically executing 1-5 add-on acquisitions during each holding period.
The firm operates without a proprietary technology product, but differentiates through two internal capabilities: the Strategic Finance Group, a dedicated team that embeds financial planning, forecasting, and capital markets support into each portfolio company, and the Enterprise Value Creation Plan, a research-driven growth and operational roadmap co-developed with portfolio management teams. 100% of portfolio-company acquisitions are sourced, diligenced, financed, and closed by 424 Capital, and the firm is 100% partner-owned.
Revenue is generated through management fees and realized carried interest on a portfolio concentrated in three verticals: Healthcare Technology (including healthcare IT, revenue cycle management, and HR/financial services for ambulatory surgery centers), Renewable Energy (energy procurement for hospitals, solar and battery storage O&M, and renewable asset management), and Data-Driven Marketing/Technology Services (nonprofit fundraising, physician engagement, and healthcare digital marketing). The firm has completed over 70 B2B Tech-Enabled Services partnerships across its history, including 14 platform acquisitions and 56 follow-on acquisitions, with realized exits including RKD Group (2019), Coronis Health (2022), and Medicus IT (2024).
424 Capital firmographics
Firmographics- Name
- 424 Capital
- Legal name
- 424 Capital
- Website
- https://424capital.com
- Company type
- Private
- Founded year
- 1998
- Operating status
- Operating
- Headcount range
- 11–50 employees
- Short description
- 424 Capital is a Wakefield, MA-based boutique growth capital firm making control equity investments of $10-50M in lower middle market B2B Tech-Enabled Services companies, primarily in Healthcare Technology, Renewable Energy, and Data-Driven Marketing, with a dedicated Strategic Finance Group supporting portfolio value creation.
- Ownership category
- akta.pro rank
424 Capital industry classification
Industry- Product category
- Private Equity / Growth Capital
- NAICS
- Portfolio Management and Investment Advice (52394), All Other Financial Investment Activities (52399)
- SIC
- Investment Advice (6282)
- akta.pro primary industry
- Business Services (B2B) Growth Equity (FSANACAD)
- akta.pro secondary industries
- Technology & Software Growth Equity (FSANACAA), Healthcare & Life Sciences Growth Equity (FSANACAB)
Keywords
Where 424 Capital is headquartered
LocationHeadquarters
- HQ city
- Wakefield
- HQ country
- United States
- HQ region
- North America
Offices1 record
Markets served
424 Capital business model
Business model- GTM type
- B2B
- Offering type
- Services
- Cost components
- Personnel, Operations, Marketing or Sales, Others
Revenue model
- Investment Returns: 424 Capital generates returns through control equity investments in lower middle market companies. The firm takes majority ownership positions and works to build portfolio companies into market leaders, ultimately seeking successful exits.
Go-to-market motion2 records
Distribution channels1 record
Marketing channels5 records
424 Capital product offering
Product offeringCore offering
424 Capital is a boutique growth capital partner that makes control equity investments in lower middle market B2B Tech-Enabled Services companies, targeting businesses with $5-30 million in revenue and $1-5 million EBITDA at time of investment, with initial transaction sizes of $10-50 million. The firm invests across Healthcare Technology, Technology Services, Data-Driven Marketing, and Renewable Energy sectors, providing capital alongside dedicated operational support including a Strategic Finance Group, M&A execution, board construction, and Enterprise Value Creation Plans.
Product overview
424 Capital is a boutique growth capital partner that makes control equity investments in lower-middle market B2B Tech-Enabled Services companies. The firm does not offer a singular product or platform but rather provides investment capital, strategic guidance, and operational support to portfolio companies. The investment focus spans Healthcare Technology, Technology Services, Data-Driven Marketing, and Renewable Energy sectors. The firm typically targets companies with $5-30 million in revenue and $1-5 million EBITDA at time of investment, with initial transaction sizes of $10-50 million. Rather than operating a product business, 424 Capital partners with portfolio companies to accelerate growth through organic expansion, strategic acquisitions, financial planning, and sales/marketing expertise.
Differentiator
Problem solved
Functional benefit
Products and services
- Control Equity Investment Program
Quantifiable outcome
- 3-Platform Investments Per Year target
- +3 more outcomes
Companies that use 424 Capital
Customer profileNamed customers18 records
Segments4 records
Ideal customer profiles1 record
424 Capital technology and API
TechnologyTechnology focussed No
API detail
- Has API
- No
- API docs
- API detail
Core technology
AI maturity
App detail
Feature2 records
424 Capital partnerships and signals
Strategic signalPartnerships
Twelve partnerships are on record, tiered core and minor.
- Climate Efficiency Partners (CEP)coreClimate Efficiency Partners acquired Tri-Tech Energy of Boonton, New Jersey, with support from investor 424 Capital. The acquisition adds several hundred C&I buildings to CEP's service base in the Mid-Atlantic region, marking CEP's third acquisition in the area.
- PTP (Pinnacle Technology Partners)core424 Capital announced significant investment in PTP, a biotech-focused IT and cloud services provider based in Norwood, MA. Investment aims to expand PTP's capabilities and geographic presence, particularly in the life sciences sector.
- Cooper ComplianceminorRadian Generation acquired Cooper Compliance, adding proprietary Global Audit Ready database-driven compliance software and talented team to Radian's full project lifecycle asset management offerings.
- Scope 5minorEnviron Energy acquired Scope 5, a carbon tracking and analytics firm serving clients in more than 60 countries. Scope 5's platform helps enterprises analyze carbon emissions and identify improvement opportunities.
- Becker HealthminorMedHQ acquired Becker Health, a leading provider of specialty nursing and allied talent acquisition solutions. The acquisition expanded MedHQ's staffing capabilities and positioned the company to serve 2000+ employees across 30 states.
- Green IT Energy ApplicationsminorRadian Generation acquired Green IT, a technology solutions provider offering operational technology and cybersecurity services plus software catalog to the renewable energy industry. Acquisition expanded Radian's offerings to over 40 GW of global renewable energy projects.
- MedHQcore424 Capital announced majority investment in MedHQ, a provider of HR and financial management services to healthcare providers. MedHQ offers payroll, benefits, and accounting services primarily to ambulatory surgery centers and physician practices across the U.S.
- Gotham 360minorHospital Energy (later rebranded as Environ) merged with Gotham 360, an energy sustainability firm. The merger expanded Environ's sustainability strategies and energy management expertise into new market segments including higher education, corporate real estate, data centers and manufacturers.
- QE Solarcore424 Capital completed acquisition of QE Solar, a leading provider of O&M services for commercial, industrial, and utility scale solar infrastructure. QE Solar manages over 1.8 gigawatts across the US and specializes in solar and battery energy storage systems O&M.
- QE SolarcoreQE Solar acquired Donahue & Sons, expanding its land stewardship and vegetation management capabilities for solar and energy installations. 424 Capital supports QE Solar's growth and expansion across the US.
- BroadcastMedcore424 Capital invested in BroadcastMed, a digital medical broadcasting company creating and distributing educational content to physicians and healthcare professionals. BroadcastMed powers over 200 client-branded video portals with nearly 1 million verified physicians subscribed.
- Hospital Energycore424 Capital Fund I completed acquisition of Hospital Energy, a NH-based energy management firm developing and managing energy procurement strategies for US hospital systems. Hospital Energy manages energy at over 200 hospitals and was the only energy procurement organization focused exclusively on the hospital market.
Scale indicators6 records
Recent moves6 records
Expansion highlights6 records
424 Capital competitors and assessment
Company assessmentDirect peers
- LLR Partners: LLR Partners is a lower middle market growth equity firm investing in technology-enabled services and healthcare businesses, with similar check sizes and a comparable focus on partnering with founders and management teams — making it a direct competitor for 424 Capital's deal flow.
- BV Investment Partners: BV Investment Partners is a middle-market private equity firm focused on tech-enabled business services and software, and acquired 424 Capital's portfolio company RKD Group in 2019 — positioning it as a direct competitor in the B2B tech-enabled services lower middle market.
- Mainsail Partners: Mainsail Partners is a growth equity firm focused exclusively on bootstrapped B2B software and tech-enabled services companies, with comparable check sizes and a similar thesis around founder-friendly capital — making it a head-to-head competitor for 424's target investments.
- JMC Capital Partners: JMC Capital Partners is a lower middle market private equity firm focused on tech-enabled services, and is a direct competitor for deals in 424's target verticals — notably, 424's own deal team member Jack Colton previously worked at JMC, underscoring the comparable platform model.
- Periscope Equity: Periscope Equity is a Chicago-based private equity firm focused on lower middle market tech-enabled services companies, with a similar buy-and-build approach and check size — directly competing with 424 Capital for founder-led B2B service businesses.
- Mountaingate Capital: Mountaingate Capital is a Denver-based lower middle market private equity firm focused on business services and tech-enabled services, with comparable investment criteria and check sizes that place it in direct competition with 424 Capital's investment focus.
- Trinity Hunt Partners: Trinity Hunt Partners is a lower middle market growth-oriented private equity firm focused on business services and tech-enabled services, employing a similar hands-on partnership model and targeting founder-led companies — directly competing for 424's deal flow.
- Kinderhook Industries: Kinderhook Industries is a lower middle market private equity firm focused on acquiring and growing tech-enabled business services companies, with a comparable buy-and-build strategy — placing it in direct competition for 424 Capital's target investments.
Broad incumbents
- Thoma Bravo: Thoma Bravo is a much larger software-focused private equity firm operating across the technology and tech-enabled services space. While its check sizes dwarf 424 Capital's, Thoma Bravo is a relevant incumbent establishing exit benchmarks and increasingly competing in lower middle market opportunities.
Others
- Eagle Private Capital: Eagle Private Capital is a recurring co-investment partner alongside 424 Capital in multiple transactions (including Practis and Coronis Health). While not a direct competitor for deals, it is a closely related capital partner in the lower middle market ecosystem.
Market position
Strengths5 records
Weaknesses5 records
Competitive moat5 records
Key risks6 records
Key highlights7 records
Customer concentration
424 Capital social profiles
Digital presence424 Capital financial estimates
Financial estimateRevenue estimate
Valuation estimate
424 Capital leadership team
Management profileNumber of profiles
Profiles20 records
424 Capital funding detail
Funding detailFunding overview
Funding rounds
Investors
Funding detail is available on the Subscription and Enterprise plan.Contact sales →
424 Capital M&A and investment
M&A and investmentM&A9 records
Investments5 records
M&A and investment is available on the Subscription and Enterprise plan.Contact sales →
Frequently asked questions about 424 Capital
What does 424 Capital do?
424 Capital is a boutique growth capital partner that makes control equity investments in lower middle market B2B Tech-Enabled Services companies, targeting businesses with $5-30 million in revenue and $1-5 million EBITDA at time of investment, with initial transaction sizes of $10-50 million. The firm invests across Healthcare Technology, Technology Services, Data-Driven Marketing, and Renewable Energy sectors, providing capital alongside dedicated operational support including a Strategic Finance Group, M&A execution, board construction, and Enterprise Value Creation Plans.
Is 424 Capital a public or private company?
424 Capital is a private company. It is classified as management employee owned and is currently operating.
When was 424 Capital founded?
424 Capital was founded in 1998. It employs 11 to 50 people.
Where is 424 Capital based?
424 Capital is headquartered in Wakefield, United States, in the North America region.
How does 424 Capital make money?
One revenue line is on record: investment Returns.
Who are 424 Capital's main competitors?
Direct peers on record are LLR Partners, BV Investment Partners, Mainsail Partners, JMC Capital Partners, Periscope Equity, Mountaingate Capital, Trinity Hunt Partners and Kinderhook Industries. Thoma Bravo is listed as a broad incumbent. Eagle Private Capital is listed as an others.
Does 424 Capital have an API?
No public API is recorded for 424 Capital.
What industry is 424 Capital in?
424 Capital's product category is Private Equity / Growth Capital. Its primary akta.pro industry code is FSANACAD, Business Services (B2B) Growth Equity, with a secondary code of FSANACAA, Technology & Software Growth Equity. Its NAICS code is 52394 and its SIC code is 6282.