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Key people at Nextgen Partners.
NextGen Growth Partners (NGP) is a private equity firm investing in, operating, and growing lower middle market businesses. The firm partners directly with entrepreneurial talent, applying a hands-on operational strategy to enhance performance and drive sustainable expansion across its portfolio. NGP combines strategic capital with direct management to unlock enterprise value.
Founded by experienced investment professionals and operators, NGP emerged from an insight into unmet potential within the lower middle market. The firm recognized a critical need for deep operational engagement combined with growth capital. This founding principle emphasizes active partnership, fostering long-term value creation.
NGP primarily serves founders and management teams of lower middle market companies seeking strategic growth or ownership transitions. The firm's vision is to be the preeminent operational partner, equipping businesses with resources and guidance for sustained market leadership. NextGen Growth Partners aims to cultivate robust companies for future opportunities.
Key people at Nextgen Partners.
Nextgen Partners has 1 tracked investment across 1 company. The latest tracked deal is $47.0M Series B in Aceable in December 2018.
| Date | Company | Round | Lead Investor(s) | Co-Investor(s) |
|---|---|---|---|---|
| Dec 1, 2018 | Aceable | $47.0M Series B | Mike Mcclure | Alumni Ventures, Capital Factory, Floodgate, Next Coast Ventures, Silverton Partners, Wildcat Venture 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]
