Emerging Growth Investments

McCarthy Capital’s Emerging Growth strategy makes growth equity investments of $5 million to $20 million in businesses with at least $1 million of recurring revenue.

Company Characteristics

  • At least $1 million of ARR or $3 million of total revenue

  • High growth, high margin businesses
  • Software, technology-enabled business services, and consumable consumer products companies
  • Scalable businesses with a preference for recurring revenue, either via contract or purchase frequency
  • Established management teams with a track record for growth
  • Proven business models, an established customer base and traction in the market
  • Products and/or services that are branded or differentiated
  • Markets with sufficient size and favorable growth prospects
  • Clear path to profitability

Investment Characteristics

  • Investments of $5 million – $20 million

  • Need for primary capital; comfortable with partial secondary liquidity

  • Founders/managers maintaining significant ownership

  • Ability to form a strong partnership with management

  • Open to both minority and majority ownership positions

  • Not necessary to be first or only institutional capital or to be lead investor