- CCMP Growth Advisors closed its fourth fund, CCMP Capital Investors IV, with over $500 million, beating its target.
- Under new leadership, the firm is emphasizing control buyouts of high-growth, founder- or family-owned North American consumer and industrial companies with roughly $15–$75 million of EBITDA.
- The fund has made four platform investments and 11 add-on acquisitions in about a year, with portfolio companies posting ~16% revenue growth and ~21% EBITDA growth in 2023.
- Insiders contributed over 10% of commitments, with Ropes & Gray serving as counsel and CrossBay Capital Partners and Spartan Advisors as placement agents.
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The final close of CCMP Capital Investors IV (“CCMP IV”) marks an important recalibration for the legacy CCMP platform. Having undergone a leadership transition in 2022 when founders of CCMP Capital stepped back, the current leadership under Joe Scharfenberger and Mark McFadden has refined the investment focus: smaller-to-mid-market, control-led buyouts (rather than minority growth investments), with founders or family owners playing a significant role.
From a deal execution perspective, the fund has made strong early progress. With four platform investments—Mammoth Holdings (express car washes), Omnia Exterior Solutions (roofing/exteriors), Decks & Docks (marine contractor and outdoor living distribution), and Innovative Refrigeration (industrial refrigeration services)—CCMP IV has not only shown its sectoral breadth within Consumer and Industrial sectors, but also its ability to use add-on acquisitions to drive scale. Eleven add-on deals in the first year point to aggressive consolidation strategies.
Performance metrics to date are encouraging. These four platforms delivered ~16% revenue growth and ~21% EBITDA growth in 2023. That suggests management has been executing on both top-line expansion and margin improvement—which is essential in a market where multiples on private equity are under pressure.
In terms of funding structure and investor base, CCMP Growth demonstrates high alignment. With over 10% of capital coming from insiders (employees, advisors, retired partners), and legacy limited partners from CCMP Capital being active investors and participants in governance, risk of investor skepticism is reduced. Legal and advisory team credibly includes Ropes & Gray and noted placement agents.
Strategic implications and comparative positioning: CCMP Growth is targeting opportunities at an attractive niche—companies growing +10% organically, EBITDA in US$15-75 million—segments that are often overlooked by larger buyout firms focused on larger scale or platform plays. The emphasis on owner transition and fragmented industries creates opportunity for value creation through consolidation, technology adoption, and margin expansion.
However, certain risks and open questions emerge: Can the firm’s control-oriented strategy in a constrained fundraising environment maintain deal flow without overpaying? Are valuation expectations realistic in midsize consumer/industrial sectors with less scale? Furthermore, exit timelines and market liquidity will be tested as broader PE fundraising and exit activity remain sluggish. CPI, interest rates, and inflation pressures may also strain margins in industrial sectors. Lastly, what is the firm’s capacity—both operationally and in leadership—to absorb and scale many platform+add-on deals simultaneously?
Supporting Notes
- CCMP Growth closed its fund, CCMP IV, with over US$500 million, exceeding its fundraising target.
- CCMP Growth was formed in 2022 as the successor to CCMP Capital Advisors, led by Joe Scharfenberger and Mark McFadden.
- Fund investment focus: high-growth, middle-market Consumer & Industrial sectors in North America, often partnering with family or founder-owned businesses.
- Typical growth profile: organic revenue growth exceeding 10%; targeted company EBITDA range US$15-75 million.
- Four platform investments as of close: Mammoth Holdings, Omnia Exterior Solutions, Decks & Docks, Innovative Refrigeration.
- These platforms together delivered average revenue growth of ~16% and EBITDA growth of ~21% in 2023.
- Fund has completed 11 add-on acquisitions across those four companies in the prior 12 months.
- Investor base includes domestic & foreign pension funds, insurance companies, financial institutions, family offices, and high-net-worth individuals. Over 25 C-suite execs or board members from legacy CCMP portfolio companies also invested.
- More than 10% of commitments came from CCMP Growth employees, executive advisors, and former CCMP partners.
- Deal advisors: Ropes & Gray (legal), CrossBay Capital Partners (placement agent, North America), Spartan Advisors (placement agent, Europe).