PennSpring Capital

What PennSpring Capital does

PennSpring Capital is a self-capitalized private equity firm founded in 2018 in Lancaster, Pennsylvania by Lou Castelli and Justin Davis, focused exclusively on the lower middle market. The firm invests in founder-led companies at critical inflection points, with stated investment criteria of $5M+ revenue and $2M+ EBITDA, and typical transaction sizes of $5-50M. PennSpring operates through two core programs: its PE Accelerator methodology, which combines smart capital, experienced operating leadership, and strategic focus to accelerate growth, and KeystoneCEO, a buy-and-build program that matches proven executive leaders with high-potential companies, providing pre-funded market diligence, acquisition sourcing, and significant equity for management. The firm has executed 25 investments since inception (including 17 majority positions), completed 7 successful exits, and supports 450 employees across its portfolio platform.

PennSpring's portfolio is deliberately diversified across at least seven verticals, with four actively consolidated platforms. Zirtual is a virtual assistant and virtual paralegal platform built through four add-on acquisitions (Delegated, Del.Trust, Double, Virtual Gurus) since February 2024, with AI-driven matching and delegation technology acquired via Double ($20M+ in prior venture investment). EHC Associates is a multi-vertical environmental services platform (asbestos, lead, mold abatement, concrete coating) expanded through three 2025 acquisitions into Pennsylvania, New Jersey, and Delaware. PSST is a K-12 compliance SaaS platform with internally developed ACA-Track software, expanded nationally via Paragon Compliance and ACA Compliance Solution Services. Additional holdings include Mobiniti (text marketing, 1,000+ business customers) and Refresh LED (national LED video wall provider, entered October 2024).

The firm generates returns through capital gains on portfolio exits (documented outcomes include Securus Contact Systems EBITDA quintupled in 30 months before sale to Signpost; Swing Kingdom/Atlas Molding EBITDA tripled in 19 months) and through operating income from majority-owned subsidiaries. Self-capitalization from the founders' own prior successful exits (notably Skyhawks Sports Academy sold to Genstar Capital) eliminates LP obligations, enabling faster deal closes and full alignment with portfolio founders, who typically retain meaningful equity stakes. The firm's distribution strategy relies on direct outreach to founders and owners via investment banking relationships, professional networks, and referrals rather than traditional marketing channels. PennSpring has been recognized as a Top 50 PE Firm in the Middle Market by Grady Campbell/GCI Publishing in both 2025 and 2026 (fourth selection) and as an Axial Top 20 Private Equity Fund for 2026.

Name

PennSpring Capital

Legal name

PennSpring Capital, LLC

Website

https://pennspring.com

Company type

Private

Founded year

2018

Operating status

Operating

Headcount range

1–10 employees

Short description

PennSpring Capital is a self-capitalized private equity firm founded in 2018 that invests in founder-led lower middle-market companies through its PE Accelerator and KeystoneCEO programs, executing buy-and-build strategies across environmental services, virtual professional services, compliance SaaS, and adjacent verticals.

Ownership category

akta.pro rank

Product category

Private Equity Investment Services

NAICS

Other Financial Investment Activities (5239)

SIC

Investors, Nec (6799)

akta.pro industry

PRIMARYFSANABAA

Large-Cap / Mega-Fund Buyout

Financial & Insurance/Private Equity & Venture Capital/Private Equity Firms (Buyout)

Keywords

• Private equity investing
• Lower middle market
• Buy-and-build strategy
• Growth equity partnerships
• Founder-led acquisitions

Headquarters

HQ city

Lancaster

HQ country

United States

HQ region

North America

Offices3 records

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Operations, Marketing or Sales, Technology or R&D

Revenue model

1. Capital gains from portfolio company exits: Private equity returns generated through buying, operating, and selling portfolio companies. PennSpring has completed seven successful exits since 2018, including Securus Contact Systems (quintupled EBITDA in 30 months), Swing Kingdom/Atlas Molding (tripled EBITDA in 19 months), EastRock Solutions, and others.

Pricing tiers

Go-to-market motion3 records

Distribution channels2 records

Marketing channels3 records

Core offering

PennSpring Capital makes majority equity investments in founder-led companies in the lower middle market, typically with $5M+ revenue and $2M+ EBITDA. The firm provides immediate liquidity to founders along with operational expertise, professional leadership, and growth capital through its proprietary PE Accelerator methodology. It also operates the KeystoneCEO buy-and-build program, matching proven executive leaders with high-potential portfolio companies while offering pre-funded market diligence, acquisition sourcing, and board-level support.

Product overview

PennSpring Capital operates as a private equity firm in the lower middle market, utilizing its proprietary PE Accelerator investment methodology. The firm offers two core investment programs: traditional Private Equity investing in founder-led companies, and KeystoneCEO, a buy-and-build executive leadership program. PennSpring's portfolio includes multiple acquired brands across various industries: virtual assistant services (Zirtual platform comprising Zirtual, Delegated, Del.Trust/Zirtual Paralegals, Double, and Virtual Gurus with AI-powered matching); environmental remediation services (EHC Associates with ecoservices, East Coast Concrete Coating, and Penoco); compliance SaaS (PSST with ACA-Track software and Paragon Compliance); customer engagement technology (Mobiniti text marketing platform); and LED display solutions (Refresh LED).

Differentiator

Problem solved

Functional benefit

Products and services

• PE Accelerator PennSpring's proprietary investment methodology that accelerates growth through smart capital, experienced leadership, and strategic focus, creating value by moving undervalued founder-led companies to higher valuations.
• Private Equity Investment Services Core majority equity investment program for promising founder-led companies at critical inflection points, providing liquidity, professional services, operational support, and capital for refinement of operations. Targets companies with $5M+ revenue and $2M+ EBITDA.
• KeystoneCEO Buy-and-build program combining proven executive leaders with rigorous analysis, committed capital, and world-class advisory services. Provides pre-funded market diligence, acquisition sourcing, significant equity for management, and turnkey functional solutions including legal, HR, benefits, and franchise compliance.
• ACA-Track Internally developed SaaS solution for ACA compliance by portfolio company PSST, providing end-to-end support for tracking, reporting, and printing/mailing of 1094/1095 compliance forms for K-12 schools, municipalities, and private employers.

Quantifiable outcome

• Portfolio company EBITDA tripled in 19 months (Swing Kingdom/Atlas Molding)
• +3 more outcomes

Named customers6 records

Segments6 records

Ideal customer profiles1 record

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

AI capability3 records

Feature1 record

Partnerships

Nine partnerships are on record, tiered core.

• PenococoreStrategic or Co-development Partner · 16 December 2025EHC Associates (PennSpring portfolio) acquired Penoco, a Pleasant Gap, PA environmental remediation provider with thousands of projects across Pennsylvania and Maryland since 1988.
• Virtual GuruscoreStrategic or Co-development Partner · 2 December 2025Zirtual (PennSpring portfolio) acquired the virtual assistant division of Calgary-based Virtual Gurus. Company has been named Top Virtual Assistant Company in North America by Clutch and twice made Globe and Mail's Canada Top Growing Companies list. Valuable corporate partnerships include Mastercard and Scotiabank.
• ACA Compliance Solution Services (ACA CSS)coreStrategic or Co-development Partner · 21 October 2025PSST (PennSpring portfolio) acquired ACA CSS, a Woodland Hills, California-based ACA compliance leader with strong Western U.S. customer base and premier broker network.
• ecoservicescoreStrategic or Co-development Partner · 2 September 2025EHC Associates (PennSpring portfolio) acquired ecoservices, an environmental remediation provider based in Exton, PA with nearly 3,000 completed projects since 2009. Extends EHC footprint to Maryland, New Jersey, and Delaware.
• East Coast Concrete CoatingcoreStrategic or Co-development Partner · 2 September 2025EHC Associates (PennSpring portfolio) acquired East Coast Concrete Coating, expanding the platform to complementary specialty contractors. Founder Zack Beitz joined EHC as Chief Operating Officer.
• Paragon CompliancecoreStrategic or Co-development Partner · 11 April 2025PSST (PennSpring portfolio) acquired Paragon Compliance, an ACA compliance provider with established access to New York, Ohio, and Connecticut markets. Founded in 2010 with long-term client relationships.
• DoublecoreTechnology or Integration · 10 September 2024Zirtual (PennSpring portfolio) acquired Double, gaining AI-driven matching and delegation technology. Double had raised over $20M from 25 venture investors. Eurazeo ($39B AUM), Index Ventures ($4B AUM), and Daphni ($549M AUM) were among prior investors in Double.
• Del.TrustcoreStrategic or Co-development Partner · 18 June 2024Zirtual (PennSpring portfolio) acquired Del.Trust and established a virtual paralegal division. Del.Trust founder Jaclyn Foster became President of the new division, leading national business development with attorneys and law firms.
• DelegatedcoreStrategic or Co-development Partner · 13 February 2024Zirtual (PennSpring portfolio) acquired Delegated, a nationally-recognized virtual assistant provider. Delegated was previously owned by entrepreneurial luminaries including Grasshopper founder David Hauser and author Dan Martell.

Scale indicators8 records

Recent moves6 records

Expansion highlights6 records

Direct peers

• Centre Partners: Middle-market private equity firm focused on consumer, healthcare, and services businesses with $25-150M revenue. Comparable in middle-market focus, sector breadth, and majority-buyout orientation to founder-led companies.
• LLR Partners: Middle-market private equity firm focused on technology and services businesses, executing buy-and-build strategies. Comparable in deal-size band, multi-platform roll-up approach, and emphasis on operational value creation similar to PennSpring's PE Accelerator.
• Periscope Equity: Lower middle-market PE firm investing in founder-led, niche-leading services and technology-enabled businesses. Highly comparable to PennSpring in target company profile ($5-50M revenue, founder-led), investment style, and buy-and-build execution.
• Sheridan Capital Partners: Lower middle-market PE firm focused on healthcare services and technology businesses. Comparable in transaction-size band ($10-100M), founder-friendly approach, and partnership-style investing similar to PennSpring's model.
• Tritium Partners: Lower middle-market private equity firm focused on differentiated, founder-led businesses with $5-50M EBITDA. Comparable in deal-size band, founder-friendly approach, and partnership-style operating model similar to PennSpring's KeystoneCEO ethos.
• Crystal Capital Partners: Middle-market private equity firm with similar lower-middle-market transaction profile and operating focus. Comparable in founder-led business orientation and buy-and-build value creation playbook.
• HighBar Partners: Lower middle-market private equity firm focused on enterprise software and tech-enabled services. Directly comparable to PennSpring in check size and founder-friendly positioning; HighBar acquired PennSpring's Securus exit (via Signpost), evidencing direct interaction and overlap in deal universe.
• Housatonic Partners: Middle-market private equity firm investing in founder- and family-owned businesses with $10-100M in revenue. Comparable transaction size band and focus on founder-friendly capital solutions, including partial liquidity and growth partnerships similar to PennSpring's offering.

Broad incumbents

• Genstar Capital: Larger middle-market private equity firm that acquired Skyhawks Sports Academy (PennSpring founder Lou Castelli's prior exit). Genstar operates broader sector mandates at a larger AUM scale, but shares PennSpring's middle-market DNA and founder-partnership orientation.
• Olympus Partners: Middle-market private equity firm focused on business services, consumer, and industrial sectors with $10-200M EBITDA. Comparable in deal-size band, sector breadth, and multi-platform holding approach, though operating at larger scale than PennSpring.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks7 records

Key highlights7 records

Customer concentration

• LinkedInlinkedin.com/company/pennspring-capital

Revenue estimate

Valuation estimate

Number of profiles

Profiles5 records

Subsidiaries14 records

Funding overview

Funding rounds

Investors

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

M&A7 records

Investments1 record

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

Frequently asked questions about PennSpring Capital