McCown De Leeuw & Co

The firm operates with a permanent-capital holding-company structure rather than a typical 10-year closed-end fund. This means it is not obligated to sell portfolio companies on a fixed timeline; it can hold businesses indefinitely and reinvest cash flows. In October 2023, the firm expanded its model by forming MDC Capital Partners, a structured fund vehicle that adds institutional capital alongside the legacy balance sheet.

McCown De Leeuw identifies founder-owned businesses in fragmented industries — such as HVAC services, industrial testing, and packaging distribution — and acquires a platform company. It then executes a series of add-on acquisitions to create regional or national leaders. The firm provides professionalized management and operational expertise to accelerate growth.

The firm was co-founded by George McCown and David De Leeuw, who have led the partnership for four decades. Investment decisions are made by the senior partnership, which operates with a lean, consensus-driven approach. The 2023 formation of MDC Capital Partners suggests a broader senior team is now involved in fund-level investment committee functions.

The firm targets lower-middle-market companies with enterprise values typically between $50 million and $250 million. It focuses on three sectors: industrial technology and engineered products, healthcare services, and specialty consumer businesses. Sellers are often founders seeking a liquidity event or a partner for the next growth phase.

Historically, the firm invested primarily off its own balance sheet, which gave it flexibility to move quickly without managing external LP relationships. With the launch of MDC Capital Partners in 2023, the firm has signaled an intention to manage committed institutional capital for the first time, while preserving its permanent-capital legacy vehicle.

McCown De Leeuw relies on a proprietary network built over four decades of investing in the industrial and service sectors. Senior partners cultivate multi-year relationships with business owners, industry executives, and specialized intermediaries. This relationship-based origination model targets proprietary transactions, often before a company engages an investment bank for a broad auction.

Because the firm is not bound by fund-life constraints, it can offer founders a flexible exit timeline. Portfolio companies may be held indefinitely, sold to strategic buyers, or recapitalized. The permanent-capital structure means exit decisions are driven by value maximization rather than a fund-expiration clock.