Beringer Capital managing partner Gil Ozir talks to Mergers & Acquisitions about his firm’s fourth fundraise, focused on consumer, media, marketing, and technology. “We think that broadly speaking the lower middle market has reached an interesting inflection point around digital transformation,” Ozir tells us.
“Ultimately, the way we define it is: how can you use the power of technology, data to drive new business models, revenue streams, and find ways to differentiate and gain competitive advantage in your markets?”
In marketing, that has meant investing in customer acquisition company Perform[cb], which drives customer traffic to niche businesses to generate meaningful sales despite an advertising environment dominated by Google, Facebook, and Amazon. Media and events platform investment The Inman Group also plays to a harder to reach market of residential real estate professionals in which digital innovation can pay returns.
The latest fund sports $307 million in committed capital for sector investments in companies generating $5-plus million in earnings before interest, taxes, depreciation, and amortization.
“We have a unique background in that none of us have come from PE or financial engineering world,” Ozir explains. “Our partners have all started led and sold their own businesses, have a much more operational, entrepreneurial mindset when working with portfolio companies to try to bring skills and translate that into growth initiatives that move the needle for the company.”
That hands on approach means accompanying management teams to sales pitches and dialing into board meetings ahead of the standard monthly owner check-in. Beringer Capital even helped portfolio company Adweek launch a new event product called BrandWeek, demonstrating an ability to ideate alongside management.
No doubt more opportunities for collaboration loom as digital transformation presents options across industries.