Lower middle market private equity firm
Potomac Equity Partners
- HeadquartersWashington, DC S1
- Websitepotomacequitypartners.com
- Last verifiedOctober 28, 2026
At a glance
| EBITDA range | $2M+ S2 |
|---|---|
| Deal types | Platform, Add-on S2 |
| Geography | North America S2 |
| Sectors | IT Services & MSP, Healthcare Services, Software & SaaS |
What Potomac Equity Partners buys
Potomac Equity Partners is a Washington, D.C. private equity firm that buys control of smaller companies, usually 51 percent or more, in five areas: business services, education and training, healthcare, information services, and software and technology. It looks at deals with enterprise values of $10 million to $150 million, its starting profit test is about $2 million to $15 million or more, and the company should be based in North America. Many of these fields are heavily regulated, and the firm says its Washington base and network help it judge and manage that risk.
Potomac does not describe a committed fund. It brings outside equity from family offices, fund-of-funds, insurers and wealthy individuals to each deal, and every member of its team puts personal money into each one. It keeps debt modest and grows companies through add-ons. Its current IT platform, WM Synergy, bought LogicData in May 2026, so a small ERP or IT consulting firm could meet Potomac as an add-on.
Recent deals
Announced in the 24 months before October 28, 2026.
| Date | Company | Type | Sector | Source |
|---|---|---|---|---|
| May 2026 | LogicDataInfor CloudSuite Industrial partner and maker of the iShop ecommerce storefront, added to WM Synergy | Add-on | IT Services & MSP | Source |
Portfolio by sector
From the firm's portfolio page S3.
Healthcare Services
- U.S. Mobile Health Exams
IT Services & MSP
- WM Synergy
Software & SaaS
- DialConnection Not stated (2014 investment)
Past investments: Orion Systems Integrators, Structured Network Solutions, Vernalis
Greymont’s take
How Potomac Equity Partners fits a seller
Potomac fits owners of IT services, software, healthcare services or business services companies who want a small, hands-on partner rather than a large fund. The firm is led by three partners with a group of advisory partners, and the team invests its own money next to outside investors in each deal. Its record shows patient holds built on add-ons: it grew Orion Systems Integrators through acquisitions before selling it to One Equity Partners in 2018, and it merged Watermark Solutions with Synergy Resources in 2023 to form WM Synergy.
Potomac has announced only one deal in the past two years, so an owner should ask how the equity for a new deal would be raised and how quickly it can be committed. Owners of ERP or IT consulting firms can ask whether WM Synergy is still looking for add-ons.
Questions owners ask
What size deals does Potomac Equity Partners do?
It targets transactions with enterprise values between $10 million and $150 million, and its initial profitability criterion is about $2 million to $15 million or more. It typically buys a controlling stake of 51 percent or more.
Does Potomac Equity Partners invest in IT services companies?
Yes. Its current platform WM Synergy, formed in 2023, provides ERP consulting, implementation, IT support and cloud hosting, and it bought Infor partner LogicData in May 2026. Potomac earlier owned IT services firm Orion Systems Integrators, sold in 2018.
Does Potomac Equity Partners pay fees to deal intermediaries?
Yes. The firm says it pays a success-based fee on any completed investment that a buy-side intermediary helped bring to it.
Sources
- S1Potomac Equity Partners home page Accessed October 28, 2026
- S2Potomac Equity Partners: Investment Criteria Accessed October 28, 2026
- S3Potomac Equity Partners: Our Investments Accessed October 28, 2026
- S4Potomac Equity Partners: Our Capital Accessed October 28, 2026
- S5Potomac Equity Partners: Investment Philosophy Accessed October 28, 2026
- S6Potomac Equity Partners: Press Releases Accessed October 28, 2026
- S7WM Synergy Announces Acquisition of LogicData (May 29, 2026) Accessed October 28, 2026
- S8Potomac Equity Partners Announce the Merger of Watermark Solutions with Synergy Resources (August 21, 2023) Accessed October 28, 2026
- S9Potomac Equity Partners Announces Acquisition of U.S. Mobile Health Exams (February 23, 2022) Accessed October 28, 2026
- S10Potomac Equity Partners firm brochure (January 2023) Accessed October 28, 2026
Compiled by Greymont Advisors from public sources, including the firm’s own website and press releases. Greymont is not affiliated with Potomac Equity Partners. Figures are as reported on the dates shown and may have changed. Request a correction