These private equity firms provide the capital and strategic guidance for franchises that are looking to innovate their business models and expand their footprint.
The private equity sector plays a pivotal role in supporting and expanding the franchise industry by providing essential capital, as well as strategic guidance. Among the numerous firms specializing in this niche, these 10 stand out for their significant contributions and approaches.
Boxwood Partners
Boxwood Partners, an investment banking firm based in Jupiter, Florida, and Richmond, Virginia, focuses on sell-side advisory for founder and private equity-owned companies. and has expertise in various industries like franchising, food and beverage, fintech, labels and packaging and industrial. With over 50 years of collective experience in the franchising industry, Boxwood Partners offers transaction counseling, management, business development, finance, operational and technology services.
Princeton Equity Group
Princeton Equity Group, a seasoned investment firm, caters to the franchise and multi-unit business industry. Backed by a team of skilled investors, the firm offers critical insights for franchisors aiming to expand nationally. The firm’s approach emphasizes preserving the unique culture and purpose of each business, ensuring a balanced growth strategy. By partnering with Princeton Equity Group, franchisors gain access to tailored investment solutions, operational expertise and a commitment to long-term value creation.
Franchise Equity Partners
Minority stake investor Franchise Equity Partners (FEP) was founded on the belief that the franchising sector — an important and attractive part of the U.S. economy — has limited access to institutional sources of capital. FEP’s investment philosophy is to work with seasoned owner-operators, allowing them to run their businesses while helping them meet their objectives through customizable investments.
KKR
KKR provides a range of services for franchises, leveraging its extensive expertise in private equity, capital markets, infrastructure, real estate and credit. KKR offers franchises access to capital, strategic guidance and a robust network of resources to drive expansion and improve operational efficiencies. Its holistic approach supports franchises in achieving sustainable growth and long-term success.
Roark Capital Group
Roark, an Atlanta-based private equity firm, manages $38 billion in assets. The firm focuses on investments in consumer and business service companies, particularly those with franchise or franchise-like business models. The experts at Roark believe that successful partnerships result from providing a compelling value proposition to all business constituencies, leading to a positive business environment where all stakeholders share in the growth and success of the firms.
Gala Capital Partners
Gala Capital Partners (GCP) is a private investment firm based in Southern California that seeks to invest in or acquire distressed or growth-oriented multi-unit businesses, SaaS software companies and strategic and value-add real estate opportunities. With its focus on companies with sound performance results and a capable management team, GCP is a patient, long-term investor that builds trusting partnerships with management teams with the aim of adding value through its multi-concept platform and industry experience.
3G Capital
3G Capital, a multi-billion dollar worldwide investment firm, prioritizes long-term value creation by primarily optimizing the potential of brands and businesses. The firm and its partners have a well-established track record of generating value by leveraging operational excellence, board involvement, deep knowledge in specific industries and a comprehensive global network.
TSG Consumer Partners
TSG Consumer Partners, founded in 1986, is a prominent investment firm with over $16 billion in assets under management. The firm’s focus is exclusively on the branded consumer sector, encompassing industries such as food and beverage, restaurant, beauty, personal care, household and e-commerce.
Summit Partners
With offices in North America and Europe, Summit Partners is a global investment firm focused on growth equity, fixed income and public equity opportunities. The firm’s strategy emphasizes profitable growth as the path to building durable businesses and long-term value. Over four decades, Summit has partnered with leading companies in technology, healthcare and other growth sectors, investing in more than 550 companies. These companies have had over 175 public equity offerings and 250 strategic mergers and sales.
Sentinel Capital Partners
Sentinel Capital Partners is a leading private equity firm focused on the middle market in the U.S. and Canada. The firm invests in a variety of scenarios including management buyouts, corporate divestitures, family businesses, going-private transactions and operational turnarounds. Sentinel seeks to invest in businesses with attractive prospects and quality management teams.
These top ten private equity firms play a crucial role in the growth and sustainability of franchising businesses. They offer indispensable support across industries and their tailored solutions highlight the importance of private equity in driving innovation and success in the franchising sector.
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