McCarthy Capital

High-Level Overview

McCarthy Capital, now rebranded as M-One Capital in 2025, is a private equity firm specializing in partnering with management teams, founders, and family owners of lower middle market companies. The firm focuses on providing equity capital, strategic guidance, and operational resources to businesses with established profitability and growth potential, where management retains meaningful ownership and operating control. Their investment philosophy centers on long-term value creation through growth equity, recapitalizations, and management buyouts, typically investing between $10 million and $125 million per transaction. Key sectors include tech-enabled business services, consumer, staffing, and select real estate strategies. McCarthy Capital/M-One Capital plays a significant role in the startup and growth ecosystem by supporting companies beyond capital infusion, emphasizing partnership, operational improvements, and strategic growth initiatives[1][2][3][4][5][6].

Origin Story

Founded in 1986, McCarthy Capital has built its reputation over more than 35 years by partnering closely with founders, families, and management teams who maintain significant equity stakes and operational control. The firm has evolved from a traditional private equity investor to a value-added partner emphasizing long-term growth and operational excellence. Key leadership includes Patrick Duffy, President and Managing Partner, who highlights the firm's commitment to integrity, rigor, and relationship-driven investing. The rebranding to M-One Capital in 2025 reflects the firm's expanded scale, strategic evolution, and organizational growth while maintaining its founding principles[1][2][3][5][6].

Core Differentiators

• Unique Investment Model: Focus on lower middle market companies with revenues typically between $20 million and $200 million; investments range from $10 million to $125 million in equity, including minority and majority stakes.
• Partnership Approach: Emphasis on supporting management teams who retain meaningful ownership and operating control, avoiding consulting fees and limiting financial leverage.
• Value Creation Playbook: Strong operational support including talent management, sales and marketing enhancement, platform scaling, balance sheet optimization, and succession planning.
• Track Record: Over $1.1 billion deployed across multiple funds, with a total portfolio value marked at $3.7 billion and $1.7 billion realized as of recent years.
• Network Strength: Proprietary deal sourcing with 69% of investments sourced directly, and a stable base of institutional, family office, and high-net-worth investors.
• Long-Term Perspective: Preference for longer hold periods to maximize growth and value creation[1][3][4][5][6].

Role in the Broader Tech Landscape

McCarthy Capital/M-One Capital rides the trend of supporting established, profitable companies in the lower middle market that require growth capital and strategic partnership rather than early-stage venture funding. The timing is favorable due to increasing demand for flexible capital solutions that allow founders and management to retain control while scaling operations. Market forces such as technological adoption in business services, staffing, and consumer sectors, combined with a focus on operational excellence, position the firm to influence the broader ecosystem by enabling sustainable growth and preparing companies for successful exits. Their approach also supports the stability and longevity of family-owned and founder-led businesses, which are critical to economic resilience[1][4][5][6].

Quick Take & Future Outlook

Looking ahead, M-One Capital is poised to leverage its expanded platform and organizational growth to deepen its impact on the lower middle market. Trends shaping their journey include increased digitization of business services, evolving workforce dynamics in staffing, and the growing importance of operational data analytics. The firm’s commitment to partnership and value creation suggests it will continue to influence the ecosystem by helping companies scale responsibly and prepare for competitive market exits. The rebranding to M-One Capital symbolizes a forward-looking vision that balances legacy with innovation, ensuring the firm remains a preferred partner for owner-led businesses seeking growth capital and strategic support[5][6].