Lower middle market private equity firm
424 Capital
- HeadquartersWakefield, MA S6
- Website424capital.com
- Last verifiedOctober 29, 2026
At a glance
| EBITDA range | $1M to $6M S3 |
|---|---|
| Revenue range | $3M to $50M S3 |
| Deal types | Platform, Add-on S3 |
| Sectors | Healthcare Services, IT Services & MSP, Environmental & Waste, Cybersecurity, HVAC, Plumbing & Electrical |
What 424 Capital buys
424 Capital is a private equity firm in Wakefield, Massachusetts that takes control of founder-led, business-to-business service companies in two areas: healthcare, and what it calls the energy transition, which for 424 covers clean energy, power, water and energy efficiency services. It wants profitable companies with recurring revenue, $1 million to $6 million of EBITDA and $3 million to $50 million of revenue. The firm says its team has completed more than 120 acquisitions.
Each platform starts from a thesis about what can be built in a fragmented market. 424 then sets up a board, strengthens management and reporting, and makes acquisitions. Add-ons are picked for fit rather than size, so a small owner can sell to a 424 company at almost any scale. Current platforms include Solution Group in water and wastewater operations, PTP and Neovera in managed cloud and security services, Climate Efficiency Partners in commercial HVAC and energy efficiency, and MedHQ in back-office services for outpatient healthcare.
Recent deals
Announced in the 24 months before October 29, 2026.
| Date | Company | Type | Sector | Source |
|---|---|---|---|---|
| Feb 2026 | LearnWellStudent academic and mental health services provider sold to the Sustainable Investing business at Goldman Sachs Alternatives | Exit | Education | Source |
| May 2025 | Donahue & SonsVegetation management and site maintenance firm for solar and energy sites added to QE Solar; its team joined QE | Add-on | Landscaping | Source |
| Mar 2025 | Stratum Consulting PartnersHexagon asset management software consultancy added to Total Resource Management | Add-on | IT Services & MSP | Source |
| Feb 2025 | Solution GroupIndianapolis operator of complex wastewater facilities for industrial clients and utilities, led by co-founder John Brenan | Platform | Environmental & Waste | Source |
Portfolio by sector
From the firm's portfolio page S4.
Critical Power & Grid Hardening Services
- MidStates Energy Current
Cyber Security
- Neovera Current
Data-driven Marketing
- Allegiance Group + Pursuant Current
Energy Efficiency
- Climate Efficiency Partners Current
Energy Efficiency & Procurement
- Environ Current
Enterprise Asset Management and Asset Performance Management
- Total Resource Management Current
Life Sciences Facility Services
- VaLogic Current
Patient & Clinical Engagement
- Reverba Current
- Conexiant Current
Professional Services
- MedHQ Current
- Onspire Current
- Alatus Solutions Current
Renewable Energy
- QE Solar Current
- Radian Generation Current
Technology Services for Life Science & Biotechnology
- PTP (Pinnacle Technology Partners) Current
Water
- Solution Group Current
Past investments: LearnWell, Medicus IT, CSS Health, Coronis Health, RKD (RobbinsKersten Direct)
Greymont’s take
How 424 Capital fits a seller
424 Capital fits founders of service businesses with recurring contracts in healthcare support, managed IT and security, water and wastewater operations, renewable energy maintenance, or commercial HVAC and efficiency work. Its $1 million EBITDA floor for a new platform is lower than most control buyers, and smaller owners can still join an existing platform, as Donahue & Sons did with QE Solar in May 2025 when its staff moved over to QE.
The firm takes control and says it prepares each company for a later sale to a wide pool of buyers, so a founder who keeps a stake should expect a second sale down the road. It bought Medicus IT in 2017 and sold it to FFL Partners in 2024, and it sold LearnWell to Goldman Sachs Alternatives in February 2026. Owners should ask how much equity they would roll, what role they would keep, and how long 424 expects to hold.
Questions owners ask
Does 424 Capital buy water and wastewater service companies?
Yes. In February 2025 it invested in Solution Group, an Indianapolis company that runs and maintains technically complex wastewater facilities. Solution Group said it plans to grow through acquisitions and partnerships, including in municipal work, smart water management and remote monitoring.
What size company does 424 Capital look for?
For a new platform it looks for $1 million to $6 million of EBITDA and $3 million to $50 million of revenue. For add-ons to its existing companies it says it judges a target on strategic fit with the platform, not on size.
Does 424 Capital invest in managed IT and cybersecurity firms?
Yes. In June 2023 it invested in PTP, a cloud and managed services provider for life sciences companies, and in Neovera, a managed security and cloud firm. In September 2024 it sold Medicus IT, a healthcare-focused managed service provider it had owned since 2017, to FFL Partners.
Does 424 Capital take majority or minority stakes?
Its About page says it makes control investments in profitable companies with recurring revenue. After closing, 424 and the company form a board, invest in leadership and systems, pursue add-on acquisitions and prepare the business for an eventual sale.
Sources
- S1424 Capital home page Accessed October 29, 2026
- S2424 Capital: About Accessed October 29, 2026
- S3424 Capital: Approach and Investment Criteria Accessed October 29, 2026
- S4424 Capital: Portfolio (with company detail pages) Accessed October 29, 2026
- S5424 Capital: News Accessed October 29, 2026
- S6424 Capital Promotes Brian Kelly to Partner (August 14, 2026, Wakefield, Mass.) Accessed October 29, 2026
- S7Solution Group Partners with 424 Capital (PR.com, February 3, 2025) Accessed October 29, 2026
- S8QE Solar Acquires Donahue & Sons (PRWeb, May 23, 2025) Accessed October 29, 2026
- S9424 Capital Announces the Sale of Medicus IT (September 18, 2024) Accessed October 29, 2026
- S10LearnWell Announces Investment from Goldman Sachs Alternatives (PR Newswire, February 4, 2026) Accessed October 29, 2026
- S11424 Capital: News, page 2 (PTP and Neovera investments, June 2023) Accessed October 29, 2026
Compiled by Greymont Advisors from public sources, including the firm’s own website and press releases. Greymont is not affiliated with 424 Capital. Figures are as reported on the dates shown and may have changed. Request a correction