Ocean Avenue Capital Partners

Overview

Ocean Avenue Capital Partners is an independent private equity firm based in Santa Monica, California. The firm focuses on investing in lower middle-market companies, targeting inefficient markets characterized by either the size or complexity of transactions. By partnering with independent sponsors, Ocean Avenue aims to provide capital for growth and acquisitions in these underserved segments, seeking superior risk-adjusted returns. The firm's investment strategy centers on identifying and profiting from market inefficiencies inherent in small-cap and complex situations. Representative transaction characteristics include buyouts, recapitalizations, thematic platform builds, growth investments, and special situations such as carve-outs and turnarounds. Business characteristics of interest encompass founder-owned companies with EBITDA ranging from $3 to $15 million, operating in fragmented markets with defensible positions and opportunities for operational improvements. Investment characteristics involve equity investments between $10 and $25 million, with options for limited partner co-investment. Ocean Avenue Capital Partners is open to both majority and minority stakes and offers board observer seats with performance-based economics. The firm has invested in over 130 lower middle-market companies across multiple industries and verticals over its 13-year history, managing approximately $1.9 billion in assets under management as of February 2024.

Investment Focus

• Founder-owned businesses
• EBITDA of $3-$15 million
• Fragmented markets
• Defensible market position
• Operational improvement opportunities
• Headquartered in the United States or Canada