Middle market private equity firm (equity plus subordinated debt)

Merit Capital Partners

At a glance

Latest fundFund VII, $550M (Jan 2022) S10
EBITDA range$4M+ S2
Revenue range$20M+ S2
Check size$20M+ S2
Deal typesPlatform, Add-on, Minority, Growth S2
GeographyUnited States S2
SectorsIndustrial & Manufacturing, Distribution, Consumer & Food, Healthcare Services, Roofing

What Merit Capital Partners buys

Merit Capital Partners is a Chicago private equity firm, founded in 1993, that has raised more than $2.7 billion across seven funds and made 110 investments. It backs manufacturing, distribution, logistics and service companies with at least $20 million of revenue and at least $4 million of EBITDA, and it wants to put in at least $20 million. Every investment pairs equity with subordinated debt, so Merit is both a shareholder and a lender. It focuses on majority stakes and will consider some minority ones. Start-ups, turnarounds, real estate, restaurants and oil and gas exploration are out.

Merit works two ways: it sponsors deals itself with founders and managers, or it supplies the capital behind independent sponsors, which it has done more than 40 times. Because of the $20 million floor, a company near $4 million of EBITDA is a tight fit as a new platform. A smaller company is more likely to meet Merit as an add-on, where it sets no minimum. Its companies closed five add-ons in 2025, and Superior Roofing plans more across the Southwest.

Recent deals

Announced in the 24 months before November 5, 2026.

DateCompanyTypeSectorSource
Oct 2026DS18Pembroke Park, Florida designer and distributor of aftermarket audio products, bought with independent sponsor Enceladus Partners and management; Merit put in equity and subordinated debtPlatformDistributionSource
July 2026U.S. MineralsFund V holding from December 2010 marked as exited on the portfolio page; no buyer namedExitSource
April 2026Glunt IndustriesFund V holding from October 2011 marked as exited on the portfolio page; no buyer namedExitIndustrial & ManufacturingSource
Mar 2026Superior Roofing and Midwest RoofingTwo Southern California commercial roofing contractors bought at the same time and combined, with Fletch Equity and both management teamsPlatformRoofingSource
Dec 2025Kish CompanyRecapitalization of an Ohio industrial minerals distributor and processor with its founder and management, closed in late 2024 and announced a year laterPlatformDistributionSource
Dec 2025CN Construction ToolAdded to American Producers Supply during 2025Add-onDistributionSource
Dec 2025Solution Sources ProgrammingCalifornia test programming firm added to Circuit Check during 2025Add-onIndustrial & ManufacturingSource
Dec 2025Eastrock SolutionsEquipment and aftermarket parts provider added to Kemper during 2025Add-onIndustrial & ManufacturingSource
Dec 2025Fox River MillsDomestic sock competitor added to Nester during 2025Add-onConsumer & FoodSource
Dec 2025Performance Industrial ConstructionInstallation service provider to the concrete batch industry, added to Midwest Manufacturing during 2025Add-onConstruction ServicesSource
July 2025Omni Glass & PaintWisconsin glass and paint company held since May 2019; no buyer namedExitIndustrial & ManufacturingSource
June 2025Elgen Manufacturing CompanyNew Jersey maker of ductwork accessories held since June 2019 with MFG Partners; no buyer namedExitIndustrial & ManufacturingSource
Mar 2025Carl's PlaceWisconsin maker and distributor of golf simulator packages, with Fulton Capital and the founderPlatformConsumer & FoodSource

Portfolio by sector

From the firm's portfolio page S4.

Fund V

  • Advantage Sintered Metals and Contact Technologies
  • Identity Group
  • Kinex Medical and R&M Rehabilitation
  • Medway Air Ambulance

Fund VI

  • Gartner
  • Glenn Rieder
  • John-Richard Collection
  • MicroPrecision
  • MW Metals Group
  • Nester Hosiery
  • Reliant at Home
  • Revision Military
  • Stratus

Fund VII

  • Superior Roofing
  • DS18
  • Carl's Place
  • Kish Company
  • Circuit Check
  • AFX Lighting
  • Kemper
  • PFI InStore
  • American Producers Supply
  • Displayit
  • Acacia Health
  • CyCan Industries
  • GoodGiant
  • Propét Footwear
  • Urban Surfaces

Greymont’s take

How Merit Capital Partners fits a seller

Merit suits an owner who wants to take money off the table but stay invested and keep running the company. Its recapitalizations let founders diversify while keeping a significant stake, and it acts as a board-level adviser rather than a day-to-day manager. It also says it uses little outside debt, which it presents as a reason deals close with more certainty.

The deals are sizeable. A $20 million minimum investment means a business close to the $4 million EBITDA floor may not fit as a new platform. Many of its deals also come through an independent sponsor, and Merit says it is comfortable letting that sponsor lead. An owner should ask who will control the board after closing, and what the subordinated debt will cost the business each year, since it is built to pay a current yield.

Questions owners ask

Is Merit Capital Partners a lender or an equity investor?

Both, in each deal. Merit says it is a shareholder and a lender in every transaction, pairing control or non-control equity with subordinated debt. It provided both in DS18 and in Superior Roofing.

What is the smallest company Merit will back?

For a new investment it wants at least $20 million of revenue, at least $4 million of EBITDA and room to invest at least $20 million. Its September 2026 overview sets no minimum for add-ons.

Does Merit work with independent sponsors?

Yes, often. It counted DS18, done with Enceladus Partners, as its 41st deal with an independent sponsor, and it says it can supply all the equity and subordinated debt while the sponsor leads.

Does Merit buy roofing companies?

It has one roofing platform. In March 2026 it announced the purchase of Superior Roofing and Midwest Roofing, two Southern California commercial contractors, with Fletch Equity, and the combined company plans more acquisitions across the Southwest.

Sources

  1. S1Merit Capital Partners home page Accessed November 5, 2026
  2. S2Merit Capital: Investment Criteria Accessed November 5, 2026
  3. S3Merit Capital: Who We Are Accessed November 5, 2026
  4. S4Merit Capital: Our Portfolio Accessed November 5, 2026
  5. S5Merit Capital: Independent Sponsors Accessed November 5, 2026
  6. S6Merit Capital: Recapitalizations/Buyouts Accessed November 5, 2026
  7. S7Merit Capital: News Accessed November 5, 2026
  8. S8Merit Capital: Contact Us Accessed November 5, 2026
  9. S9Merit Capital Partners firm overview (portfolio as of September 2026) Accessed November 5, 2026
  10. S10Merit Capital Announces the Successful Closing of Fund VII (January 11, 2022) Accessed November 5, 2026
  11. S11Merit Capital Partners and Enceladus Partners Acquire DS18 (October 21, 2026) Accessed November 5, 2026
  12. S12Merit and Fletch Equity Support the Combination of Superior Roofing and Midwest Roofing (March 25, 2026) Accessed November 5, 2026
  13. S13Merit Invests in Kish Company and Robust Acquisitions for Existing Portfolio Companies (December 17, 2025) Accessed November 5, 2026
  14. S14Merit Announces Two Successful Exits (December 17, 2025) Accessed November 5, 2026
  15. S15Merit Capital Partners and Fulton Capital Invest in Carl's Place (March 4, 2025) Accessed November 5, 2026

Compiled by Greymont Advisors from public sources, including the firm’s own website and press releases. Greymont is not affiliated with Merit Capital Partners. Figures are as reported on the dates shown and may have changed. Request a correction

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