- CCMP Growth Advisors, spun out of CCMP Capital in 2022, closed CCMP Capital Investors IV with over $500 million, above target.
- The fund targets control buyouts of high-growth North American consumer and industrial businesses, typically with $15–$75 million of EBITDA and 10%+ organic revenue growth.
- CCMP IV already has four platform investments and 11 add-on acquisitions, with portfolio companies posting about 16% revenue growth and 21% EBITDA growth in 2023.
- Investor alignment is strong, with 10%+ of commitments from insiders and backing from a broad institutional and executive base.
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The successful closing of CCMP IV represents not only a fundraising win in a challenging environment for private equity but also a refined strategic shift for the newly independent CCMP Growth Advisors. Formed in 2022 from the legacy CCMP Capital platform, the firm, under Joe Scharfenberger and Mark McFadden, has narrowed its investment focus toward smaller, high-growth companies in the U.S., particularly founder- or family-owned businesses with clearly defined growth trajectories. This sharper focus contrasts with the broader investment remit of its predecessor, which handled larger deals and more diversified sectors.
Emphasis on control investments like buy-outs, coupled with the requirement for organic growth over 10%, signals discipline and a preference for greater influence over execution and strategic transformations. CCMP Growth seems to believe that firms in their target market are capable not only of steady growth but also of lifting margins and value through operational improvements and M&A (which is evidenced by the 11 add-on acquisitions made across its platforms).
The high growth metrics—~16% revenue and ~21% EBITDA growth among CCMP IV’s initial investments in 2023—are impressive for middle-market companies. They suggest successful selection and support: CCMP Growth is targeting segments with tailwinds in consumer and industrial sectors, investing in platforms like express car washes, marine/outdoor-living distribution, exterior construction, and refrigeration. These sectors reflect resilient demand and potential leverage through scale and operational leverage.
Investor alignment is notably strong: over 10% of commitments from internal stakeholders and legacy partners; broad backer diversity including institutional investors and former portfolio company executives. In a tight fundraising market, this signals credibility and trust. The selection of Ropes & Gray, CrossBay Capital Partners, and Spartan Advisors as advisors/agents also underscores the firm’s robust operating infrastructure and governance discipline.
Strategic implications include CCMP Growth positioning itself as a conduit for institutional capital seeking exposure to resilient industrial and consumer platforms with growth via both organic expansion and bolt-ons. Given its refined focus and early platform performance, CCMP IV could become a benchmark fund in its sub-sector. However, open questions remain: how durable are revenue/EBITDA gains in 2024 and beyond, what exit timing and returns will look like in a volatile M&A and rates environment, and how well the firm can scale within its defined investment thesis amid competition for similar targets.
Supporting Notes
- Final close of CCMP Capital Investors IV (CCMP IV) exceeded the fund’s US$500 million target.[0search0]
- CCMP Growth was established in 2022, spun out of CCMP Capital Advisors, under co-managing partners Joe Scharfenberger and Mark McFadden.[0search0][0news13]
- Fund allocates according to strategy: high-growth middle-market Consumer & Industrial companies, often partner with family owners/founders, with company EBITDA typically US$15–75 million; organic revenue growth over 10%.[0search0]
- Four platform investments completed to date: Mammoth Holdings, Omnia Exterior Solutions, Decks & Docks, Innovative Refrigeration.[0search0]
- These platforms averaged ~16% revenue growth and ~21% EBITDA growth in 2023.
- 11 add-on acquisitions across platform companies over the prior 12 months.
- Investor base includes domestic and foreign pension funds, insurance companies, financial institutions, family offices, high-net-worth individuals; more than 25 C-suite execs or board members from CCMP’s legacy portfolio also invested.[0search0]
- Over 10% of fund commitments came from CCMP Growth’s employees, executive advisors, and former partners.[0search0]
- Legal and placement advisory team: Ropes & Gray (legal), CrossBay Capital Partners (placement – North America), Spartan Advisors (placement – Europe).