“Hands-on impact” is a hallmark of investing in the lower mid-market, says Kinzie Capital Partners’ Suzanne Yoon

“One of the best things about the lower mid-market is that we can really have a true hands-on impact on our portfolio companies,” said Suzanne Yoon , founder and managing partner of? Kinzie Capital Partners LP , a Chicago-based private equity firm investing in companies in the manufactured products, business services and consumer industries. “That has to do with our ability to be closer to the management teams, the ability to have more ‘say’ in the way things go.”

Kinzie typically invests in established but small companies, ones that generate under $15 million in EBITDA. These companies are very “nimble,” but their size makes them more “subject to market fluctuations,” Yoon points out.

Many of them have what Yoon calls “technology debt.” They haven’t been able to make the investments into the business that they wanted to, often because they don’t know how to resource technology.

A differentiating feature for Kinzie is a strategic partnership with a technology consulting firm that helps guide portfolio companies through technology changes, Yoon explained.

Kinzie has been active on the dealmaking front lately, announcing in February?the purchase of Arctic Industries, a provider of temperature control and cold storage solutions, from Stoic Holdings. And in December, Kinzie-backed GT Golf Supplies announced it?acquired ProActive, a golf accessories provider.

Yoon spoke with Mary Kathleen (MK) Flynn , editor-in-chief of?PE Hub, about the opportunities and the challenges of investing in the lower mid-market. The video conversation took place on the sidelines at?PEI Group’s NEXUS 2024 summit?earlier in March.