Nextgen Partners
Nextgen Partners is a company.
Active
Updated: ·
Financial History
Total Raised
N/A
Valuation
N/A
Leadership Team
Key people at Nextgen Partners.
Nextgen Partners is a company.
Key people at Nextgen Partners.
NextGen Growth Partners (NGP) is a Chicago-based private equity firm founded in 2016, specializing in lower middle-market investments across mission-critical B2B services in the US.[5][4][2] Its mission centers on partnering with founder- or family-owned businesses generating $5M–$50M in revenue and $2M–$8M+ in EBITDA, providing flexible succession planning by installing Entrepreneurs in Residence to drive growth while allowing owners to exit on their timeline.[4][2] The firm's investment philosophy emphasizes proven companies with recurring revenue, loyal customers, and potential for operational improvements and add-ons, focusing on resilient sectors like facilities services (landscaping, HVAC, plumbing), niche contracting, professional/technical services, and business process services.[4] NGP has raised over $165M for Fund III (closed recently as of 2025), building a track record of 12+ transactions and influencing the ecosystem by professionalizing fragmented industries and supporting founder transitions.[2][5]
NGP was founded in 2016 by Brian O'Connor, now Managing Partner, alongside key team members like Eric Wilson (Partner and Head of Portfolio Operations).[5][2] The firm emerged to address succession challenges in family-owned lower middle-market businesses, leveraging the team's private equity and operational expertise to create flexible growth partnerships rather than traditional buyouts.[4][2] Early milestones include closing its debut fund at $50M, followed by Fund II in 2021 and Fund III exceeding $165M by 2025, with initial deals like Condata (2018) and DAWGS (2019) establishing focus on B2B services.[5][2] This evolution reflects a shift toward "Entrepreneurs in Residence" models, enabling rapid leadership transitions and scaling, as seen in recent 2023–2025 acquisitions like Premier Property Services and MWH.[2]
NGP stands out in private equity through targeted strategies for lower middle-market B2B services:
While not purely tech-focused, NGP rides the wave of B2B services digitalization and consolidation in fragmented markets, where aging founders seek succession amid economic cycles.[4] Timing aligns with post-pandemic resilience in essential services like HVAC and waste management, amplified by infrastructure spending and compliance demands.[4][2] Market forces favoring NGP include lower middle-market illiquidity, creating opportunities for professionalization via tech-enabled operations (e.g., training platforms, outsourced expertise).[4] The firm influences the ecosystem by enabling founder liquidity, fostering add-on M&A, and bridging family businesses to scaled enterprises, contributing to B2B stability amid broader tech hype.[2][5]
NGP's trajectory points to Fund IV deployment, targeting more Facilities and Professional Services deals amid ongoing fragmentation and recession-proof demand.[4][2] Trends like AI-driven compliance tools and sustainability in infrastructure will shape growth, potentially expanding geographic reach beyond the US lower middle market.[4] Influence may evolve toward larger platforms via roll-ups, solidifying NGP as a go-to for founder transitions—echoing its core strength in turning enduring businesses into scaled leaders.[5][2]
Key people at Nextgen Partners.
