325 Capital

Parag Shah, the Founder and Managing Partner, leads investment decisions. He built the firm after a career at General Atlantic, where he sourced and managed growth-stage investments in technology and consumer companies. The firm operates with a concentrated team, and Shah sits on the boards of portfolio companies as part of the active-engagement model.

The firm sources investments pro-actively through a network built during Shah's tenure at General Atlantic, combined with direct outreach to founder-owned businesses. 325 Capital tends to target profitable companies that are not running a formal auction process — businesses that need growth capital and operational support but whose founders are not yet ready to exit. This approach positions 325 Capital as a direct, off-auction solution rather than a participant in broad, intermediated processes.

325 Capital typically takes a significant minority position, securing a board seat and the ability to influence strategy and operations, but it does not seek outright control in most deals. The firm calls itself a 'lead active minority investor,' meaning it underwrites for deep involvement while leaving the founder as the largest shareholder and daily operating lead. This sits between pure passive growth equity and full buyout control.

The firm targets companies generating $10 million to $50 million in revenue, and its equity checks are sized to give it a meaningful minority position within that band. While exact check sizes vary, the model implies equity investments typically in the range of $15 million to $50 million per transaction, reflecting the firm's operationally intensive, concentrated portfolio approach.

No. 325 Capital explicitly focuses on profitable, cash-flow-generating businesses and will not invest in pre-revenue or early-stage venture opportunities. Its entry point is the gap that opens after a company has established product-market fit and revenue traction but before it becomes a middle-market private equity target — roughly $10 million to $50 million in annual revenue.

There is no ongoing corporate relationship, but the firm's founder and investment DNA come directly from General Atlantic. Parag Shah spent his professional career at General Atlantic before leaving to found 325 Capital in 2018. The firm's name references 325 Park Avenue, the address of General Atlantic's New York headquarters during Shah's tenure there, signaling the growth-equity tradition from which it was launched.

The firm concentrates its capital on enterprise software, healthcare services, and consumer businesses. It does not publicly flag additional explicit sector exclusions, but by construction it avoids capital-intensive industries like heavy manufacturing, commodities, infrastructure, and hard-tech hardware where its operational model and check-size band would not translate well. Its model is designed for asset-light, founder-driven service and technology companies.