Middle market private equity firm
L Squared Capital Partners
- HeadquartersNewport Beach, CA S1
- Founded2014 S1
- Websitelsquaredcap.com
- Last verifiedOctober 26, 2026
At a glance
| Assets under management | $5.3B (as of Apr 2026) S5 |
|---|---|
| Latest fund | L Squared Capital Partners V, $2B (Apr 2026) S5 |
| EBITDA range | $5M+ S1 |
| Check size | $50M+ S2 |
| Deal types | Platform, Add-on S2 |
| Geography | North America S2 |
| Sectors | IT Services & MSP, Software & SaaS, Industrial & Manufacturing, Education |
What L Squared Capital Partners buys
L Squared Capital Partners is a Newport Beach, California firm founded in 2014 that backs growing companies in three areas: tech-enabled services and software, industrial technology and services, and education technology. It looks for $5 million to more than $50 million of EBITDA, enterprise values of $50 million to over $800 million and growth of at least 15% a year, and its equity checks start at $50 million. It prefers majority ownership through buyouts, recapitalizations and founder liquidity deals in North America. In April 2026 it closed Fund V at its $2.0 billion hard cap, bringing total commitments to about $5.3 billion.
Most smaller companies will meet L Squared as an add-on. The firm says it has completed 70 add-ons across 23 platforms, and its releases openly ask for more: Netrio is buying managed IT and security providers, Kano Labs wants specialty chemical makers, GSI Group wants laboratory consumables brands, and Functional Devices wants makers of building automation components.
Recent deals
Announced in the 24 months before October 26, 2026.
| Date | Company | Type | Sector | Source |
|---|---|---|---|---|
| Aug 2026 | Aven ToolsMaker of precision tools and instruments, the fifth acquisition for GSI Group | Add-on | Industrial & Manufacturing | Source |
| Jul 2026 | Triboscience & EngineeringSpecialty lubrication engineering firm added to Kano Labs; the founder stays to lead research | Add-on | Industrial & Manufacturing | Source |
| Apr 2026 | Pioneer Safety GroupExplosion protection and hazardous-area safety brands, the fifth acquisition for Cognesense | Add-on | Industrial & Manufacturing | Source |
| Apr 2026 | L Squared Capital Partners VFirst and final close at the $2.0 billion hard cap | Fund close | Source | |
| Apr 2026 | BTX PrecisionSingle-asset continuation fund led by HarbourVest, with a new commitment from Fund IV | Investment | Industrial & Manufacturing | Source |
| Feb 2026 | Functional DevicesIndiana maker of relays and controls for building automation; management invested alongside L Squared | Platform | Industrial & Manufacturing | Source |
| Jan 2026 | CAIG LaboratoriesPoway, California maker of DeoxIT contact cleaners added to Kano Labs | Add-on | Industrial & Manufacturing | Source |
| Nov 2025 | ErgoGrowth investment in a New York geopolitical intelligence firm; management kept a significant stake | Platform | Source | |
| Oct 2025 | GenesisBPSCell therapy and blood processing equipment maker, the fourth acquisition for GSI Group | Add-on | Industrial & Manufacturing | Source |
| Aug 2025 | High Tech SolutionsKansas City aerospace components maker, the tenth acquisition for BTX Precision | Add-on | Industrial & Manufacturing | Source |
| Jun 2025 | AgioNew York managed IT and cybersecurity provider for financial services firms, Netrio's fourth acquisition | Add-on | IT Services & MSP | Source |
| Jan 2025 | Chandler IndustriesPrecision manufacturer that became the ninth acquisition for BTX Precision | Add-on | Industrial & Manufacturing | Source |
| Jan 2025 | Sonitus Systems and Hidden BrainNoise, air quality and vibration monitoring company plus an IoT software platform added to Cognesense | Add-on | Industrial & Manufacturing | Source |
| Dec 2024 | Kano LaboratoriesNashville maker of industrial maintenance chemicals, the fourth platform in Fund IV | Platform | Industrial & Manufacturing | Source |
| Nov 2024 | FineLine TechnologiesSingle-asset continuation fund bought Fund I's stake to extend ownership | Investment | Industrial & Manufacturing | Source |
Portfolio by sector
From the firm's portfolio page S3.
L Squared Capital Partners II
- GSI Group Current
L Squared Capital Partners III
- Crane 1 Current
- FineLine Technologies Current
- Foundant Technologies Current
- Heggerty Current
- SignUpGenius Current
- Sterling Trading Tech Current
L Squared Capital Partners IV
- BTX Precision Current
- Cognesense Current
- Ergo Current
- Functional Devices Current
- Kano Labs Current
- Netrio Current
- TeachTown Current
Past investments: GWS Tool Group, Kanopy, Learners Edge, Raptor Scientific, Elevated, Virtium, Edlio, Teaching Strategies
Greymont’s take
How L Squared Capital Partners fits a seller
L Squared suits owners of growing, recurring-revenue businesses who want a long-term partner that will pay for acquisitions. For a managed IT or cybersecurity provider, the realistic path is a sale to Netrio, the McKinney, Texas MSP platform L Squared formed in 2024, which bought Agio in June 2025 as its fourth deal and says it will keep buying. Management often stays and invests: Functional Devices' leaders put money into the 2026 buyout and kept running the company, and Ergo's team kept a significant stake.
L Squared has used continuation funds twice, for FineLine in 2024 and BTX Precision in 2026, to hold companies longer than a normal fund life. An owner rolling equity should ask how long the platform is likely to be held, whether a continuation fund could extend that, and how add-on sellers are treated at the next sale.
Questions owners ask
Does L Squared buy managed IT services companies?
Yes, mainly through Netrio, its managed IT and security platform formed in 2024. Netrio's June 2025 purchase of Agio, a New York managed IT and cybersecurity provider, was its fourth acquisition, and L Squared said Netrio would keep pursuing managed IT add-ons.
What size company does L Squared target?
Its criteria list $5 million to more than $50 million of EBITDA, enterprise values of $50 million to over $800 million, equity investments of $50 million or more, and annual growth of 15% or better. Smaller companies are more likely to fit as add-ons to an existing platform.
How big is L Squared's latest fund?
Fund V closed in April 2026 at its $2.0 billion hard cap, more than double the $840 million Fund IV. L Squared said the close brought its cumulative commitments to nearly $5.3 billion and that it expects Fund V to make about 9 to 10 new platform investments.
Does management keep equity after an L Squared deal?
Often. In the February 2026 Functional Devices buyout, the CEO and leadership team invested alongside L Squared and continued to run the business. In the November 2025 Ergo deal, management kept a significant ownership stake.
Sources
- S1L Squared home page Accessed October 26, 2026
- S2L Squared: Our Approach Accessed October 26, 2026
- S3L Squared: Our Companies (with each linked company page) Accessed October 26, 2026
- S4L Squared: News Accessed October 26, 2026
- S5L Squared Capital Partners Closes Fifth Fund at $2.0 Billion Hard Cap (April 2, 2026) Accessed October 26, 2026
- S6Netrio Acquires Agio (June 3, 2025) Accessed October 26, 2026
- S7L Squared: Netrio company page Accessed October 26, 2026
- S8L Squared Acquires Functional Devices (February 23, 2026) Accessed October 26, 2026
- S9L Squared Makes Strategic Investment in Ergo (November 4, 2025) Accessed October 26, 2026
- S10L Squared Closes FineLine Technologies Continuation Fund (November 20, 2024) Accessed October 26, 2026
- S11L Squared Completes BTX Precision Continuation Fund (April 1, 2026) Accessed October 26, 2026
- S12Kano Labs Acquires Triboscience & Engineering (July 8, 2026) Accessed October 26, 2026
Compiled by Greymont Advisors from public sources, including the firm’s own website and press releases. Greymont is not affiliated with L Squared Capital Partners. Figures are as reported on the dates shown and may have changed. Request a correction