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MidOcean Partners

MidOcean Partners is an American alternative firm headquartered in , specializing in middle-market and alternative credit investments across . Founded in 2003 through a of Deutsche Bank's $1.8 billion business, the firm has grown to manage over $11 billion in , emphasizing collaborative partnerships and value creation in targeted sectors. The firm's private equity arm focuses on companies with enterprise values between $100 million and $750 million or more, targeting opportunities in consumer sectors such as vehicle aftermarket, food and beverage, food , and services, as well as business services including , , information services, , services, and upskilling and . It employs a theme-driven approach with engaged operating partners—over 25 senior executives and industry experts—to drive economic, human, and social value through hands-on operational improvements and flexible transaction structures, typically involving majority ownership and equity investments of $50 million to $300 million or more. Key milestones include the launch of its inaugural fund in 2003, the closure of its sixth private equity fund (Fund VI) in 2023, and a strategic partnership with to form MPearlRock, a aimed at investing in food businesses. Complementing its private equity operations, MidOcean's credit business, launched in 2009, provides creative lending solutions and invests in non-investment grade U.S. alternative opportunities, including cash flow and for companies with enterprise values of $250 million to $1 billion or more and debt investments ranging from $10 million to $100 million or more. The platform encompasses , structured credit such as collateralized loan obligations (CLOs)—with nearly $5 billion in CLO —and opportunistic strategies targeting less-trafficked segments of the high-yield and loan markets. Notable recent achievements include the 2013 launch of its first CLO, the 2024 of its third opportunistic credit fund (MidOcean Tactical Credit Fund III) at $765 million, and a $304 million final close for its inaugural CLO equity fund, demonstrating consistent outperformance across market cycles. Led by CEO Ted Virtue in private equity and a team of experienced professionals including Chairman Erik Oken for private equity and Chairman Steve Shenfeld for , MidOcean Partners prioritizes a people-first culture, focus, and positive community impact, operating as an integrated platform that leverages synergies between its equity and credit strategies to build enduring value. In August 2025, the firm signed a for a 27,000-square-foot at 31 West 52nd in , underscoring its ongoing expansion.

Overview

Founding and Organization

MidOcean Partners was established in February 2003 through a led by the executives of DB Capital Partners, acquiring Deutsche Bank's $1.8 billion late-stage portfolio. This transaction marked the firm's inception as a dedicated manager, inheriting a portfolio of investments primarily in North American companies. Headquartered in , , at 245 , the firm has maintained a strategic emphasis on North American markets for its investment activities. Over the ensuing two decades, MidOcean Partners evolved from a private equity-only operation into an integrated alternative platform encompassing both and alternative strategies. The firm launched its credit division, MidOcean Credit, in 2009, expanding its capabilities to include non-investment grade lending, asset-based finance, and structured products such as collateralized loan obligations (CLOs). This development allowed MidOcean to offer a broader suite of capital solutions across the middle market, leveraging a unified team of investors and operators to support portfolio companies through diverse financing needs. At the core of MidOcean Partners' organization is a set of guiding principles that emphasize a people-first culture and collaborative approach. These include a focus on stakeholders, putting people first, committing to hard work, achieving consensus through teamwork, embracing creativity, and harnessing as a force for positive economic, , and impact. This framework underpins the firm's operational ethos, fostering an environment that prioritizes long-term value creation and ethical practices in its investment management activities.

Investment Strategy and Focus

MidOcean Partners employs a theme-driven approach, concentrating on select sub-sectors within consumer and business services to identify and capitalize on structural trends and growth opportunities. In the consumer space, the firm targets areas such as the vehicle aftermarket, food and beverage, food , and services, while in business services, it focuses on media and marketing, information services, , infrastructure services, and upskilling and training. This thematic strategy enables MidOcean to develop deep sector expertise and pursue investments that align with evolving market dynamics, such as consumer preferences and technological advancements in service delivery. The division seeks majority control positions in North American middle-market companies, with investment criteria centered on enterprise values ranging from $100 million to $750 million or more and equity commitments typically between $50 million and $300 million or greater. This focus allows for flexible transaction structures, including leveraged buyouts and growth equity, while prioritizing platforms with strong management teams and scalable operations. In parallel, the credit division offers a suite of strategies, including opportunistic investments in mid-sized high-yield and loan markets, structured products such as collateralized loan obligations (CLOs), and non-control capital solutions like and special situations financing. investments target enterprise values from $250 million to over $1 billion, with debt commitments of $10 million to $100 million or more, emphasizing value-oriented opportunities across the . Central to MidOcean's strategy is fostering collaborative partnerships with company management and leveraging engaged operating resources, including sector specialists and operating partners, to drive value creation through operational enhancements, strategic initiatives, and add-on acquisitions. The firm's integrated platform combines and capabilities to deliver comprehensive capital solutions, enabling cross-pollination of insights and enhanced risk-adjusted returns for portfolio companies navigating complex market conditions. This holistic approach underscores MidOcean's commitment to long-term, stakeholder-oriented growth in targeted middle-market segments.

Assets Under Management

MidOcean Partners manages over $11 billion in (AUM) as of 2025, spanning its and divisions. The firm's division accounts for the majority of this total, overseeing $8.1 billion in AUM as of March 31, 2025. This scale reflects MidOcean's evolution into a comprehensive alternative asset manager focused on middle-market opportunities. In private equity, MidOcean has built its platform through a series of funds, beginning with Fund I, a $1.8 billion portfolio acquired from via in 2003. Subsequent funds have demonstrated steady growth, including Fund V, which closed at $1.2 billion in 2018, and Fund VI, which raised over $1.5 billion in 2023, marking the firm's largest to date. These capital raises underscore investor confidence in MidOcean's theme-driven investment approach in , services, and healthcare sectors. The division has similarly expanded, launching its first closed-end in 2016 with commitments exceeding $500 million. Key recent milestones include the 2024 closing of its third closed-end fund, MidOcean Tactical Fund III, at $765 million, which saw strong demand from a diverse base including pensions, endowments, and family offices. In the same year, MidOcean achieved an oversubscribed final close for its inaugural CLO fund at $304 million, representing $2.8 billion in underlying CLO AUM and elevating the firm's total CLO AUM to nearly $5 billion. Additionally, the firm expanded its offerings in 2024 by launching a structured , enabling flexible capital solutions across the middle market. This AUM growth is bolstered by MidOcean's integrated platform, which leverages sector expertise to deliver innovative and investments.

History

Formation and Early Development

MidOcean Partners was established in February 2003 through a of Deutsche Bank's portfolio, valued at approximately $1.6 billion, which included late-stage investments primarily in the United States and . The transaction was led by Ted Virtue, who served as CEO of DB Capital Partners and oversaw Deutsche Bank's $35 billion direct investment portfolio prior to the spin-out, along with key team members including David Brecher and others from the DB Capital group. This acquisition formed the basis of MidOcean's inaugural fund (Fund I), marking the firm's entry as an independent middle-market manager headquartered in . In its early years, MidOcean assembled an initial team of investment professionals drawn from Deutsche Bank's operations, focusing on operational expertise in buyouts and value creation. The firm established its primary office at 245 in , , to centralize deal sourcing and management activities in the U.S. market. This setup enabled rapid operational scaling, with the team emphasizing collaborative partnerships and sector-specific insights to support portfolio companies. MidOcean closed its second private equity fund (Fund II) in 2004 and its third (Fund III) in 2007, both targeting middle-market buyouts with commitments totaling $1.25 billion for Fund III. From inception, the firm's centered on and services sectors, pursuing themes such as branded consumer products and providers to drive growth through operational improvements. These early funds established a track record of outperformance relative to benchmarks, underpinned by successful realizations and value-add initiatives in portfolio holdings.

Expansion and Key Milestones

In 2009, MidOcean Partners launched its division, MidOcean Credit, to expand beyond into alternative opportunities in the non-investment grade U.S. market. This move diversified the firm's investment capabilities, focusing on asset-based finance, loans, and high-yield securities to complement its core operations. The following year, in 2010, MidOcean Credit introduced an strategy aimed at generating consistent returns through flexible investments, independent of broader market directions. By 2013, the division further advanced with the launch of its structured business, issuing its first (CLO), which marked the beginning of a platform that would grow to manage multiple CLOs targeting middle-market loans. The side experienced steady growth during this period, with the closure of Fund IV in 2015, a bridge fund that supported ongoing investments in consumer and business services sectors. In 2016, MidOcean Credit closed its inaugural closed-end fund, providing institutional investors with targeted exposure to opportunistic strategies. This was followed in 2018 by the closure of Fund V at $1.2 billion, the firm's largest at the time, which was oversubscribed and exceeded its $1 billion target, enabling expanded deal-making in middle-market buyouts. That same year, the second closed-end fund was completed, building on the initial fund's success in capturing illiquidity premiums in markets. Credit milestones continued in 2019 with the issuance of the tenth CLO, valued at $400 million, incorporating (ESG) parameters for the first time and demonstrating the platform's maturation to over $4.4 billion in total CLO assets. Strategic expansions accelerated in the early , including a 2021 minority investment partnership with Hunter Point Capital to fuel platform growth and enhance operational resources for both private equity and credit. In 2023, MidOcean formed the MPearlRock with PearlRock Partners and established a strategic collaboration with to invest in emerging brands within the food , leveraging Kroger's expertise to accelerate consumer packaged goods scaling. That year also saw the closure of Fund VI with over $1.5 billion in commitments, representing a 25% increase over Fund V and the largest in the firm's history, underscoring sustained confidence in its value-creation approach.

Recent Activities

In 2024, MidOcean Partners expanded its investment platform to include a structured strategy, enabling the firm to offer flexible solutions tailored to middle-market companies navigating complex growth or transition phases. This enhancement built on the success of prior funds, allowing MidOcean to scale its and offerings amid evolving market dynamics. Later that year, the firm closed its third closed-end opportunistic fund, MidOcean Tactical Credit Fund III, at $765 million, attracting commitments from a diverse group of institutional investors. Additionally, MidOcean achieved a final close for its inaugural CLO fund, MidOcean CLO Equity Fund I, raising $304 million—exceeding its $300 million target—to invest in tranches of collateralized obligations managed by its team. Building momentum into 2025, MidOcean acquired GSTV, a leading retail media and advertising network reaching over 40,000 screens at and convenience retail locations nationwide, on April 21. This deal marked a strategic entry into the fast-growing out-of-home advertising sector. In May, the firm provided structured equity to , a physician-led provider of management services to U.S. hospitals, to support tuck-in acquisitions and shareholder liquidity. June brought a notable when MidOcean sold its portfolio company InterVision Systems, a managed IT services provider specializing in and cybersecurity solutions, to NWN , a technology solutions firm backed by . MidOcean continued its active deployment in the second half of 2025, closing a investment in The Carpenter Health Network on July 21 via a to facilitate an transaction for the home health and hospice services provider. On November 5, the firm invested in Eliant, a software platform offering experience management solutions for multifamily, living, and commercial sectors, to fuel its expansion in customer feedback and analytics tools. In October, MidOcean Credit Partners partnered with Lumyna Investments, part of Generali Investments, to launch the Lumyna–MidOcean Credit UCITS Fund, a short-duration high-yield bond strategy aimed at European investors seeking absolute returns in liquid markets.

Business Operations

Private Equity Division

MidOcean Partners' Private Equity Division focuses on acquiring majority control stakes in middle-market companies, typically targeting enterprise values between $100 million and $750 million or more, with equity investments ranging from $50 million to $300 million or higher. This approach emphasizes control positions to enable hands-on involvement in driving growth and transformation within targeted sectors such as consumer products and business services. The division leverages a network of engaged operating partners, including proven founders and senior executives, who play integral roles in theme development, deal sourcing, and rigorous processes. Post-acquisition, these partners provide ongoing support to portfolio company leadership teams, facilitating strategic execution and performance improvements through collaborative guidance. Value creation in the Division is achieved through a multifaceted that includes operational enhancements to optimize efficiency, forging strategic partnerships to expand market reach, and executing sector-themed roll-ups to consolidate fragmented industries. Add-on acquisitions are a key tactic, targeting bolt-on opportunities often in EBITDA ranges up to $10 million to $50 million depending on the subsector, to generate synergies and accelerate revenue growth for platform companies. The division integrates closely with MidOcean's Credit Division as part of a unified team structure, enabling hybrid financing solutions that combine investments with structured to support complex transactions and enhance overall capital deployment.

Credit Division

MidOcean Partners' Credit Division, launched in 2009, specializes in alternative strategies, managing approximately $8.1 billion in as of March 2025. The division provides flexible, value-oriented financing solutions to middle-market companies, emphasizing opportunistic investments in less-trafficked market segments. Its platform integrates , collateralized loan obligations (CLOs), funds, and structured equity products, enabling customized capital deployment across sponsor-backed and non-sponsored deals. Key strategies include for senior secured loans and debt, with typical investments ranging from $10 million to over $100 million in valued between $250 million and $1 billion in enterprise . The division has issued more than 10 CLOs since 2013, totaling over $4.4 billion by 2019, with additional issuances and refinancings since, including seven new CLOs since 2022 that contribute to nearly $5 billion in CLO-related . Non-control investments feature term loans, financings, and sale-leaseback structures, often in asset-based or lending formats for performing and opportunities. funds and structured equity further diversify the offerings, targeting high-yield and loan markets to generate attractive risk-adjusted returns. Risk management emphasizes diversified portfolios concentrated on the middle market, leveraging collateralized structures to mitigate downside exposure while pursuing upside potential in opportunistic . This approach benefits from the firm's integrated platform, allowing seamless collaboration with its division to deliver innovative capital solutions tailored to portfolio company needs. Since inception, the division has grown steadily, capitalizing on market dislocations and evolving credit dynamics to build a robust alternative franchise.

Portfolio and Investments

Current Portfolio Companies

MidOcean Partners maintains an active portfolio of more than 10 companies, primarily in the and services sectors, reflecting its of partnering with middle-market firms to drive operational improvements and . These holdings span diverse subsectors such as , travel goods, franchising, housing analytics, digital advertising, healthcare services, and software solutions, allowing MidOcean to leverage sector-specific expertise across its investments. In the consumer sector, stands out as a key holding, specializing in aftermarket automotive parts and accessories for enthusiasts and professionals. MidOcean invested in Holley in October 2020, supporting its expansion in the high-growth performance vehicle market, which aligns with the firm's thematic focus on resilient consumer brands with strong market positions. Similarly, Travelpro Group, acquired in May 2016, is a leading designer and marketer of luggage and travel accessories under brands like Travelpro and Atlantic, targeting frequent travelers and emphasizing durable, innovative products; this investment fits MidOcean's emphasis on established consumer goods platforms with recurring demand. Empower Brands, formed in 2022 through the integration of Lynx Franchising and Outdoor Living Brands, operates a portfolio of franchise concepts in home services and personal care-related areas, including cleaning and landscaping; as a current holding, it exemplifies MidOcean's strategy of consolidating fragmented franchise models to build scalable service networks. Zonda, rebranded in October 2020 from Hanley Wood | Meyers Research, provides data analytics and advisory services for the homebuilding and multifamily sectors, enabling builders to optimize market strategies; MidOcean's involvement has facilitated add-on acquisitions like BDX in 2024, enhancing its position in real estate intelligence and supporting the firm's interest in data-driven consumer-adjacent businesses. The business services segment features recent additions that underscore MidOcean's opportunistic approach to high-potential platforms. GSTV, a out-of-home operating video screens at retailers nationwide, was acquired in April 2025, positioning it to capitalize on the rising demand for retail media solutions and integrating seamlessly with MidOcean's focus on media and marketing services. In May 2025, MidOcean provided structured equity to Emergency Care Partners, a -led provider of management and urgent care services across U.S. hospitals, to fund acquisitions and dividends, aligning with the firm's healthcare services investments that emphasize operational efficiency in essential medical staffing. Eliant, a provider of experience management software for multifamily and senior living operators, received an investment from MidOcean on November 5, 2025, enhancing its platform for resident feedback and analytics; this move supports MidOcean's thematic pursuit of technology-enabled business services that improve in and .

Notable Exits and Past Investments

MidOcean Partners has executed several high-profile exits that highlight its focus on value creation in middle-market companies within business services and consumer sectors. In June 2025, the firm sold InterVision Systems, a leading provider, to NWN Corporation, following significant growth in InterVision's IT solutions and infrastructure offerings during MidOcean's ownership since 2019. Earlier, in December 2022, MidOcean exited its investment in Nutrabolt, a prominent energy drinks and supplements company known for brands like , through a strategic transaction involving Keurig Dr Pepper's acquisition of a 30% stake for $863 million, marking a successful realization after approximately eight years of partnership that drove international expansion and product innovation. Among its consumer-focused successes, MidOcean's investment in , a refrigerated innovator, culminated in the company's in November 2014, which valued Freshpet at approximately $477 million and positioned it as a in the nutrition space with subsequent market growth. In the education services arena, MidOcean co-invested in , a provider of yearbooks and class rings, and facilitated its sale in 2003 to for $1.1 billion, achieving substantial returns through operational refocusing on core affinity products. The firm's earlier portfolio includes at least 13 notable acquisitions and exits, such as the 2018 investment in , a human capital and consulting services provider for life sciences, which MidOcean sold in May 2021 to Odyssey Investment Partners' ProPharma Group for an 8.5x multiple on invested capital, driven by , add-on acquisitions, and market expansion. These transactions underscore MidOcean's ability to generate value through strategic bolt-ons and management partnerships, with public details on multiples available for select deals like . Overall, MidOcean's track record across Funds I through V features one (Freshpet), multiple IPOs, and a history of strong performance in middle-market , as evidenced by over 20 realized exits since inception. Insights from these exits, including the emphasis on scalable brands and services platforms, have shaped MidOcean's current strategy toward theme-driven investments that prioritize operational enhancements and resilient growth.

Leadership and Governance

Executive Team

The executive team at MidOcean Partners is led by Founder and Ted Virtue, who oversees the firm's overall strategy and operations. Virtue founded the firm in 2003 following his tenure as CEO of DB Capital Partners, where he managed 's $35 billion direct investment portfolio. A graduate of with a B.A. in and , Virtue brings extensive experience in private equity from his time at . Serving as Chief Financial Officer and Managing Director is Andrew Spring, who handles the firm's financial operations. Spring previously worked as a Director at DB Capital Partners and holds a B.S. cum laude from the Wharton School of the University of Pennsylvania, as well as a J.D. magna cum laude from Cornell Law School. Deborah Hodges acts as Chief Operating Officer, Managing Director, and Chief Compliance Officer, managing operations, human resources, and compliance functions. Prior to joining MidOcean, she was COO at DB Capital Partners; she earned a B.A. from Princeton University and an M.B.A. from Northwestern University's Kellogg School of Management. Erik Oken serves as Chairman of , bringing over 30 years of experience from JP Morgan, where he was Global Head of Consumer Retail and Global Chairman of . He holds a B.A. from . Steve Shenfeld serves as Chairman of the Credit business, having previously been a and of MD Sass Macquarie Financial Strategies, LP. He earned a B.A. from and an M.B.A. from the University of Michigan Business School. Other key executives include managing directors focused on investments, such as those with backgrounds in and banking from leading institutions like . The executive team draws from a broader group of approximately 100 professionals, many of whom have prior experience at top-tier financial firms, ensuring a composition rich in expertise across and credit strategies.

Operating Partners and Board

MidOcean Partners' Executive Board provides strategic guidance and oversight for the firm's activities, drawing on the extensive experience of its members in sector-specific and governance. Steve Spinner has served as Chairman of the Executive Board since at least 2021, when he joined as an Operating Partner; he brings over 20 years of experience, including as former Chairman and CEO of (UNFI) and CEO of (PFGC). David Kieselstein served as Chairman of the Executive Board from July 2018, following his initial appointment to the board in January 2018, and now acts as an focused on business services. Dennis "DJ" Jenson joined the Executive Board in May 2019, bringing expertise in consumer brands and global market development. Recent additions include Ravi Saligram, who joined the Executive Board in June 2023 with over 35 years of executive experience across consumer and business services, including roles as CEO of and other major firms, and Hugh Charvat, who joined in May 2024 with more than 30 years as a CEO in automotive and industrial sectors. The firm's Operating Partners Group consists of sector experts who assist in , value creation initiatives, and operational enhancements, particularly in and services industries. These partners play key roles in sourcing opportunities through their networks, providing support via board seats in portfolio companies, and engaging post-investment to drive strategic growth and performance improvements. For instance, operating partners like Kieselstein, Jenson, Spinner, Saligram, and Charvat contribute specialized knowledge in areas such as M&A, brand building, and to support deal execution and portfolio management. Recent additions to the Operating Partners Group, including Saligram in 2023 and Charvat in 2024, have strengthened the firm's industry expertise in multi-sector and heavy-duty operations, enhancing its capacity for targeted value creation.

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    Jun 14, 2023 · ... Ravi Saligram, former President and Chief Executive Officer of Newell Brands, has joined the firm as an Operating Partner. Mr. Saligram is a ...
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    MidOcean Partners Welcomes Hugh Charvat to Executive Board
    May 13, 2024 · Hugh Charvat has joined the Firm as an Operating Partner. As an executive with decades of experience in the heavy-duty aftermarket and industrials spaces.
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    David Kieselstein - MidOcean Partners
    David Kieselstein currently serves as an Operating Partner on the Private Equity Investment Team, and is the former Chairman of MidOcean's Executive Board.Missing: join date
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    Dennis "DJ" Jenson - MidOcean Partners
    DJ Jenson currently serves as an Operating Partner on the Private Equity Investment Team. DJ's expertise spans a broad range of top-tier consumer brands.Missing: join date
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    Ravi Saligram | MidOcean Partners
    - **Role at MidOcean Partners**: Operating Partner on the Private Equity Investment Team
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    Hugh Charvat | MidOcean Partners
    - **Role at MidOcean Partners**: Operating Partner on the Private Equity Investment Team