- CCMP Growth Advisors closed its first fund, CCMP Capital Investors IV, with just over $500 million in commitments, beating its target.
- The buyout-oriented fund targets high-growth North American middle-market consumer and industrial companies, often founder- or family-owned, with $15–$75 million of EBITDA.
- CCMP IV has already made four platform investments and completed 11 add-on acquisitions over the past year.
- Investor alignment is high, with legacy portfolio executives participating and insiders contributing more than 10% of commitments.
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For a newly spun-out firm, the over-$500 million raise for CCMP IV in 2024 signals both strong confidence from legacy limited partners and competitiveness of its niche strategy in a challenging fundraising climate. The focus on smaller middle-market companies—EBITDA between $15-75 million—and on sectors like industrial and consumer, especially family/founder-led businesses, reflects a deliberate targeting of somewhat overlooked but high potential segments.
Early portfolio deployment aligns tightly with strategy: four platform investments across different verticals (car wash, roofing/exteriors, outdoor living distribution, industrial refrigeration) all exhibiting average 16 % revenue growth and 21 % EBITDA growth in 2023. The 11 add-on acquisitions suggest that CCMP is emphasizing build-ups and roll-ups to scale platforms via both organic and inorganic growth.
The alignment with LPs—both legacy CEOs/executives and internal team investment—may offer dual benefit: access to deal pipelines (through networks of founder-owners) and credibility in a risk-averse LP environment. The use of well-known advisors and placement agents (Ropes & Gray, CrossBay, Spartan Advisors) reinforces institutional sophistication.
Strategically, several implications emerge: CCMP IV’s size and deal profile position it between classic growth equity funds and more aggressive buyout players, enabling flexibility. However, challenges include maintaining high growth in a potentially slowing consumer and industrial macroenvironment, dealing with inflation and supply chain pressures that may compress margins, and managing leverage given mid-sized companies often have more constrained ability to absorb shocks.
Open questions include: What are the return expectations given the firm’s strategy and vintage (2023-2024)? How will CCMP distinguish itself versus peers in sectors that are crowded for roll-ups (roofing, exteriors, industrial services)? What exit strategies are planned, especially given founder/family ownership structures? And how will CCMP navigate financing (debt) shocks as interest rates remain elevated?
Supporting Notes
- Final closing of CCMP Capital Investors IV (“CCMP IV”) exceeded $500 million target.
- Fund focuses on high-growth, middle-market companies in North American Consumer and Industrial sectors.
- Typical portfolio company has revenue growth over 10 % annually and EBITDA between $15-75 million.
- Four platform investments made so far: Mammoth Holdings, Omnia Exterior Solutions, Decks & Docks, and Innovative Refrigeration.
- In past 12 months, 11 add-on acquisitions made to support portfolio company expansion.
- LP base includes more than 25 C-suite or board members from CCMP Capital’s legacy portfolio; internal team contributing over 10 % of commitments.
- Deal structure includes control buyouts and selective growth equity, targeting equity investments of about $50-200 million including co-investment.
- Legal adviser: Ropes & Gray; placement agents: CrossBay Capital Partners (North America), Spartan Advisors (Europe).
- Recent deal: CCMP Growth acquired Airo Mechanical, a HVAC and plumbing installation service provider, to expand geographically and invest in tech, demonstrating ongoing deployment of capital.
- Another recent deal: acquisition of Combined Caterers in the Southeast, a platform in event management and catering.