Progress Equity Partners

Managing Partners David D. Magdlen and R. Scott Hoss lead all investment decisions. Both co-founded the firm in 2003 and remain actively involved in sourcing, structuring, and portfolio oversight. The firm operates with a flat decision-making structure, with both partners serving on the investment committee for every transaction.

No. Progress Equity structures capital on a deal-by-deal basis rather than through a committed blind-pool fund. This means investors evaluate each transaction individually and commit capital only to the deals they select. The structure eliminates the pressure to deploy within a fixed investment period and allows the firm to pause acquisitions entirely when conditions warrant.

Progress Equity targets founder-owned, lower-middle-market companies with enterprise values between $15 million and $75 million. The firm focuses on business services, value-added distribution, specialized manufacturing, and technology-enabled services. It explicitly avoids financial services, real estate, early-stage startups, and turnarounds.

The firm requires existing management to remain in place and co-invest meaningful personal capital alongside Progress Equity. The firm takes majority control but structures governance to give operators significant autonomy over day-to-day decisions. Holding periods typically range from 5 to 10 years, designed around operational improvement arcs rather than financial engineering windows.

Progress Equity invests across the United States, with a particular concentration in the Sun Belt and Midwest regions. The firm's headquarters in Frisco, Texas, places it near a dense concentration of founder-owned industrial and service businesses that match its target profile.