Small funds outperform larger funds, and specialists outperform generalists,” says Kristina Heinze, who spearheads deal sourcing at ParkerGale Capital LP. Heinze co-founded the Chicago firm in 2014 to invest in founder-owned technology companies in the lower middle market.
ParkerGale recently closed a debut buyout fund of $240 million, exceeding the original target of $200 million. The firm makes majority investments in businesses that generate $2 million to $10 million in Ebitda. Portfolio companies specialize in providing tech-enabled business services that use, or are moving toward using, the Software-as-a-Service (SaaS) model for distributing applications.