GENERATION GROWTH CAPITAL PARTNERS IV, LLC

Thesis

Generation Growth Capital Partners IV, LLC (GGC) is a private equity firm that focuses on acquiring and growing established small to medium-sized businesses, primarily in the manufacturing, service, and distribution sectors. The firm's investment strategy centers on "professionalizing" these companies, enhancing their operational efficiency, and driving long-term value through strategic guidance and capital investment. GGC targets established, profitable businesses with sustainable niches, generally with enterprise values under $30 million and sales between $5 million and $50 million. While the firm primarily invests in manufacturing, service, and distribution businesses, it considers other industries on a case-by-case basis. GGC also considers select turnaround situations where the core business is viable but facing external pressures. The firm typically avoids funding business startups or real estate-related opportunities. GGC's investment approach is primarily structured as equity, though subordinated debt and warrant structures are also considered. Geographically, GGC is strategically focused on investing in small businesses in the upper Midwest of the United States. The firm increased its fund size to $75 million in November 2017.