MiddleGround Capital

ESG isn’t just a checkbox at MiddleGround - we've woven it into our company culture, investment process, and portfolio #operations. Our annual #Sustainability Report reveals how our initiatives drive measurable improvements. Here are some of the highlights: ?? Established the MiddleGround Charitable Foundation, with $1.5M donated and 1,559 hours volunteered. ?? Continued implementation of the "25 by 25" initiative to increase base wages within our portfolio to $25/hour by 2025. ?? Achieved 100% portfolio investment carbon footprint calculations (Scope 1 & 2). ?? Implemented the "Level Up Safety" program, conducting assessments at 80+ portfolio facilities. A huge thanks to our ESG team and portfolio for working tirelessly to make our goals a reality. Read the full report here: https://bit.ly/3yEJ7Fx

A century-old industry rarely goes through a TOTAL transformation but that’s exactly what’s happening in #automotive... and industry disruption comes with investment opportunity. Between our Partner and Mobility Thesis Leader, Justin Steil, who keeps a pulse on #electrification, lightweighting, autonomous driving, and connected vehicle trends, and the auto manufacturing chops of our ex-Toyota Motor Corporation Founders, John Stewart, and Scot Duncan, we know this space inside and out. Our dedicated Mobility Fund invests in companies that push mobility forward: more battery range, smarter tech, and lighter and safer cars than ever before. Read more about our Mobility Thesis here: https://bit.ly/3U4pvCf

A private equity firm where lunchtime means game time?? From 12:00 to 1:00, you’ll find our team trading spreadsheets for scoresheets… playing kickball, bocce ball, and engaging in a little friendly competition! Our hands-on, people-first culture doesn’t stop on the shop floor—it’s woven into EVERYTHING we do. When we’re scoring points and sharing laughs, it brings us closer as a team (and sometimes fuels a heated rematch or two). At the end of the day, we believe that working hard means playing hard, too!

You might not expect a machine operator to become a #privateequity leader, but our Director of #Operations, Troy Gonzales, defies expectations! Troy brings decades of experience from the front lines of manufacturing, where he’s developed a reputation for turning around underperforming facilities and driving transformational change. “It’s all about building respect. Whether you’re on the factory floor or in the C-suite, relationships are everything.” Troy's strength is building trusting relationships with portfolio company employees. He has a unique ability to unite diverse perspectives toward a common cause, a skill that's born from a deep respect for manufacturers at all levels. As he puts it, "No matter what you're making, every production line brings in materials and produces a product. The key is learning from the experts in the middle." With his hands-on #leadership and commitment to empowering teams, Troy’s focus is clear: delivering game-changing solutions and building high-performance teams that consistently exceed expectations.

We’re BIG believers in lifelong learning—especially when it comes to #ESG. ???? Every year, our employees participate in ESG training that covers everything from regulatory requirements to our firm’s commitment to stewardship and ethical governance. Whether it’s ensuring compliance or finding ways to reduce our environmental impact, our team is given the tools and knowledge needed to make a meaningful impact. Why is this important? It’s about protecting the value of our portfolio companies, meeting investor expectations, and ultimately leaving everything better than we found it. ESG touches every aspect of our business, and our annual training ensures we’re ALWAYS ready. #sustainability

Some things only get better with age—like wine, cheese… and Plasman's Simrishamn facility, which is celebrating its 90th anniversary!! For nearly a century, this team has been putting in WORK, from injection-molded products to surface treatments, helping solidify Plasman's presence in the automotive industry. To celebrate, over 200 team members gathered for food, music, and dancing, while congratulatory messages poured in from Plasman facilities around the world. Here’s to the hard work and dedication that brought Simrishamn this far and to many more years of continued success! ?? Read the full story here: https://bit.ly/3UiGYHl

Two things run deep in our Kentucky roots: Big hair and giving back to our community. So what better way to knock both out than supporting Bluegrass native and 2023 Miss Kentucky, Madalyne Kinnett's, organization Betty's Brave& Beautiful Hearts Foundation, Inc? As Co-Executive Director of the Foundation, Madalyne supports women in Kentucky battling breast cancer by providing not just standard resources, but HOPE through community-building that connects and uplifts those who need it most. We are happy to help continue this life-changing work. Kentucky proud ???? #philanthropy #community

FED RATE CUTS ARE IN!! ??? Interest rates were lowered for the first time in FOUR years and ripple effects are being felt across the industry. As a firm, we've always prioritized cash over debt (which was a huge help with high rates), but these cuts mean we’ll pay less on the debt we DO carry. This translates to better cash flow, reduced borrowing costs, and potential opportunities to refinance for our portfolio. Lower rates also mean that it’s a favorable time for M&A. Businesses that are wondering what’s next should focus on strategic growth and keep an eye on M&A opportunities. Deal volume is projected to pick up in Q4, and this cut is only the beginning!

?? When disaster strikes your facility, what’s your go-to plan for recovery? 1. Run multiple solutions in parallel 2. Transparent customer communications 3. Have a backup plan 4. Rigorous inspection processes That’s what our team did in 2023 when a critical piece of equipment, our galvanizing kettle, failed at one of Attala Steel Industries, LLC facilities. Hear more about how we turned a crisis into a learning opportunity and prevented further setbacks here: https://bit.ly/4gwauT9 #podcast #manufacturing #operations Scot Duncan Ryan McComb Gary Kessinger

"Love" is a strong word - reserved for true affection, care, and fondness... which is EXACTLY why Xtrac Ltd's status as a "Most Loved Workplace" makes perfect sense! This award proves Xtrac's commitment to nurturing a positive and high-performing environment. Not only is their #culture centered on collaboration, continued learning, and transparency, but they also cultivate a team with a shared drive (pun intended) to produce the MOST groundbreaking solutions in motorsports. A huge congratulations to the team at Xtrac! Learn more here: https://bit.ly/3zp3qXS