Private Equity

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KCM Capital Partners

KCM Capital Partners is a Chicago-based private investment firm providing thoughtful capital solutions to lower middle market business services, specialty...

KCM Capital Partners logo

KCM Capital Partners

KCM Capital Partners is a Chicago-based private investment firm providing thoughtful capital solutions to lower middle market business services, specialty industrial and consumer facing companies throughout North America.

General information

Firm type

Private Equity

Year founded

2017

Location

Region

North America

Country

United States

City

Chicago

Corporate office

Chicago, IL, United States

Principals

Kent C. McCarthy

Founder and Managing Partner

Sector focus

Enterprise SoftwareBusiness ServicesHealthcare Services

Frequently asked questions

Who runs investment decisions at KCM Capital Partners?

Kent McCarthy, the firm's founder and managing partner, chairs the investment committee and leads all investment decisions. His prior experience includes founding Jayhawk Capital, a multi-strategy investment firm, giving him a cross-asset perspective that informs KCM's concentrated private equity strategy.

What investment stages and check sizes does KCM typically target?

KCM focuses on control buyouts and significant minority growth-equity investments in the lower middle market. The firm typically writes equity checks between $10 million and $50 million, targeting companies with $3 million to $15 million of EBITDA. This stage focus reflects a preference for businesses large enough to have proven unit economics but small enough to benefit from operational transformation.

Is KCM Capital Partners a family office or an institutional private equity firm?

KCM operates as an institutional asset manager and private equity firm, not a family office. While founder Kent McCarthy invests personal capital alongside external backers, the firm is structured to manage institutional and high-net-worth commitments through traditional commingled fund vehicles or deal-by-deal co-investment structures.

What is the relationship between KCM Capital Partners and Jayhawk Capital?

Jayhawk Capital is the earlier investment platform founded by Kent McCarthy, known for a multi-asset approach spanning public equities and private holdings. KCM Capital Partners represents McCarthy's dedicated private equity vehicle, drawing on relationships and sector expertise developed during the Jayhawk era but operating with a distinct lower-middle-market buyout and growth-equity mandate.

How does KCM Capital Partners source deal flow?

KCM sources opportunities primarily through proprietary networks built over McCarthy's multi-decade career. The firm's sector concentration in enterprise software, business services, and healthcare services allows it to develop repeat relationships with sub-sector intermediaries and founders. By avoiding broad auction processes, KCM aims to access transactions where operational expertise commands a seat at the negotiating table.

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