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KYCO: Know Your Company

Reveal Profile

7 December 2025

1) Overview of the Company

Blackford Capital is a Grand Rapids, Michigan-based private equity investment firm founded in 2010 by Martin Stein. The firm specializes in majority control investments in founder and family-owned, lower middle-market manufacturing, industrial, and distribution companies with revenues ranging from $20-200 million and EBITDA of $3-20 million. Blackford Capital operates as an Exempt Reporting Adviser (ERA) under SEC regulations.

The firm maintains a team of 16 professionals and manages a current portfolio of 9 companies, having completed 52 investments and 14 exits since inception. Blackford Capital’s investment strategy focuses on companies with stable cash flows, proven profitability, and strong growth potential across manufacturing, distribution, and service sectors. The firm reviews between 3,000-5,000 acquisition opportunities annually, selecting approximately 50 for detailed due diligence before presenting the most promising candidates to its investment committee.

Recent transformational activity includes the December 2024 sale of portfolio company Mopec Group to Waud Capital Partners after an 11-year ownership period. In 2024, Blackford Capital completed five acquisitions, including the launch of its Fire Safety Consolidation Platform through the acquisition of Security Fire Systems and four add-on investments across existing platforms. The firm has received multiple industry recognitions, including being named to Inc. Magazine’s 2024 Founder-Friendly Investors list for the second consecutive year and receiving the 2024 USA Deal of the Year award at the Americas M&A Atlas Awards.

Martin Stein serves as Founder and Managing Director, leading acquisition sourcing activities and having served on the boards of 15 platform portfolio companies over his 18+ years in private equity. The firm’s leadership team includes Managing Directors Jeff Johnson, Carmen Evola, and Rick Lopez, along with Chief Financial Officer Ken Wagner. Blackford Capital operates from its headquarters at 190 Monroe Avenue Northwest, Suite 600, Grand Rapids, Michigan.

2) History

Blackford Capital was founded in 2010 by Martin Stein, who established the Grand Rapids, Michigan-based private equity firm after gaining significant experience in private equity transactions, including his first company acquisition at age 29 when he acquired Quality Imaging Products in Los Angeles. Prior to founding Blackford Capital, Stein worked as a consultant with Mercer Management Consulting, where he developed growth strategies for Fortune 500 clients including Sears, Dow, Searle Pharmaceuticals, Pfizer, and PacifiCare Health Systems.

The firm’s early years focused on establishing its footprint in the lower middle-market private equity space within Michigan, where Stein observed limited M&A activity but recognized growing potential for investor collaboration and industry expansion. During the 2010s, Blackford Capital built its investment platform through strategic acquisitions across manufacturing, distribution, and service sectors, completing its first significant transactions and establishing operational expertise in value creation.

In 2016, The M&A Advisor named Martin Stein the Private Equity Professional of the Year, followed by Blackford Capital receiving the Private Equity Firm of the Year award in 2018. The firm continued to gain industry recognition, winning the Private Equity Firm of the Year award from The M&A Advisor in 2021 and 2022, marking three total recognitions in this category.

A significant milestone occurred in 2019 with the successful exit of Custom Profile, a plastic extruder where Blackford led revenue growth of over 124% with an 8.6% revenue compound annual growth rate during its investment period. This exit demonstrated the firm’s operational value creation capabilities and established credibility in the plastics manufacturing sector.

In 2022, Blackford Capital expanded its leadership team with key appointments including Paul Doyle joining full-time as Managing Partner after eight years as an Operating Partner, and Ken Wagner joining as Chief Financial Officer bringing 40 years of financial leadership experience. The firm also added Rishabh Mukherjee to the deal team, relocating him from Mumbai, India to Grand Rapids to lead process improvements in deal identification and execution.

The firm launched its Outdoor Living Group platform in 2022 through acquisitions of Starfire Direct and Artificial Turf Supply, capitalizing on the growing trend of outdoor home spaces. Major exits in 2022 included Quality Aluminum Products, sold to Gibraltar Industries for significant returns after a 120% net revenue increase during Blackford’s ownership.

In 2023, Blackford Capital entered the industrial automation sector with the acquisition of PACIV, a leading provider of industrial process automation and systems integration primarily serving pharmaceutical and life sciences manufacturers. The firm subsequently expanded this platform through strategic add-on acquisitions including Data Science Automation in January 2024 and Eight12 Automation in June 2024.

December 2024 marked another transformational event with the successful sale of Mopec Group to Waud Capital Partners after 11 years of ownership, representing one of Blackford’s longest-held investments. The firm simultaneously launched its Fire Safety Consolidation Platform through the acquisition of Security Fire Systems in December 2024, marking entry into the fire safety and security industry.

3) Key Executives

Martin Stein is the Founder and Managing Director of Blackford Capital, having established the firm in 2010. With over 18 years of private equity experience, Stein leads the firm’s acquisition sourcing activities and has served on the boards of 15 platform portfolio companies, including chairman positions for 9 platform investments. He has been involved in over 50 acquisitions, investments, recapitalizations, and exits worth approximately $750 million in transaction value. Prior to founding Blackford Capital, Stein worked as a consultant with Mercer Management Consulting, developing growth strategies for Fortune 500 clients including Sears, Dow, Searle Pharmaceuticals, Pfizer, and PacifiCare Health Systems.

Jeffrey Johnson is a Managing Director of Blackford Capital, having joined the firm in 2015. Johnson has over 28 years of experience in investment banking and private equity investing and is involved in all facets of the firm’s operations, including transaction sourcing, investment analysis, portfolio construction and management, deal financing, internal operations, and fundraising. Prior to joining Blackford Capital, he was a Managing Director and founding principal at Gilbert Global Equity Partners, L.P. (formerly Soros Capital, L.P.), a billion-dollar middle-market private equity firm headquartered in New York City. Johnson currently serves as Chairman of the Board at portfolio company PACIV and previously chaired the boards of Mopec Group, Quality Aluminum Products, and Ellison Bakery.

Carmen Evola joined Blackford Capital in 2018 as Managing Director, bringing over 25 years of leadership experience within diverse, multinational manufacturing companies. Evola has direct oversight of the Portfolio Company Operations Team, working to promote growth, efficiency, and the overall success of portfolio companies. Prior to joining Blackford Capital, Carmen served as President and CEO of Vari-Form Group, LLC (formerly Crowne Group, LLC), where he had direct oversight of a $900 million portfolio comprised of 9 companies, approximately 5,000 employees, and 27 manufacturing and distribution plants located across North America, South America, Europe, and Asia. He is based out of the Detroit, Michigan office.

Rick Lopez joined Blackford Capital as Managing Director in 2025, bringing over 25 years of experience in finance, investment banking, and private equity investing. Lopez primarily oversees the firm’s fundraising efforts while also contributing to transaction sourcing, investment analysis, portfolio construction and management, deal financing, and internal operations. Prior to joining Blackford Capital, he was a Partner and Co-Founder at Rush Street Capital, a middle-market investment bank specializing in capital raising for private equity firms and their portfolio companies, where he was involved with 93 successful middle market raises totaling over $1.4 billion in capital commitments. Lopez is based in the firm’s Chicago office and previously assisted Blackford Capital as an advisor between 2016 and 2024, completing 18 different mandates and raising over $367 million in capital.

Ken Wagner serves as Chief Financial Officer of Blackford Capital, having joined the firm in February 2022. Wagner leads the firm’s finance, accounting, regulatory, compliance, reporting and controls functions, while also overseeing portfolio company due diligence and providing deals team support. He brings extensive experience in asset restructuring, financial management and operations, with a history of creating significant equity value for companies. Prior to joining Blackford, Wagner served as Chief Financial Officer at Coastal Group, where he worked with then-CEO Paul Doyle to create nearly $80 million of equity value in four years. Wagner previously worked for ten years with Paul Doyle at other companies, including seven years at GHSP, a Tier 1 automotive supplier, where as CFO they created $400 million of equity value.

Paul Doyle serves as Operating Partner and Managing Partner of Blackford Capital, having been appointed to the Managing Partner position in April 2022 after serving as an Operating Partner since 2014. Doyle has over 30 years of career experience with Tier 1 automotive companies, having held senior leadership positions in sales, marketing and organizational development, including fifteen years as CEO of GHSP, Inc and Coastal Automotive and Coastal Container Group. During his tenure as CEO of Coastal Group, Doyle led the development of executive teams to achieve a 5-year CAGR of more than 20% by focusing on strategy, executive development, lean enterprise and best practices of organizational development. He is also the Founder of LeaderWork Inc., a management development consultancy he created in 2014 which has trained hundreds of managers and executives on leadership.

4) Ownership

Blackford Capital operates as a privately-held private equity firm that operates as an Exempt Reporting Adviser (ERA) under SEC regulations, having been founded in 2010 by Martin Stein. The firm is structured as a traditional private equity partnership with capital raised from individual limited partners rather than operating with a traditional institutional fund structure.

The firm’s unique capital structure relies on a substantial base of high net worth individual investors rather than institutional limited partners. Blackford Capital operates through a deal-by-deal capital raising approach, utilizing an extensive network of private wealth management professionals who channel investments from high net worth individuals. This investor base consists of approximately 1,800 limited partners who contribute on average $50,000-$100,000 per fund, creating a retail-focused capital structure that differs from most institutional private equity firms.

According to regulatory filings, the firm manages multiple investment vehicles including the Michigan Prosperity Fund, Michigan Prosperity Fund II, BFC-GTI ($1 million closed July 2020), BFC-SNO LLC (closed January 2017), and BFC-BFX LLC (closed July 2014). The Michigan Prosperity Fund represents the firm’s primary investment vehicle targeting lower middle-market companies primarily within Michigan, while subsequent funds have expanded geographic scope.

Martin Stein maintains founder and managing partner ownership of Blackford Capital, having established the firm after nearly 15 years in leadership and business consulting positions. The firm’s management structure includes Managing Directors Jeffrey Johnson (joined 2015), Carmen Evola (joined 2018), and Rick Lopez (joined 2025), along with Chief Financial Officer Ken Wagner (joined February 2022) and Managing Partner Paul Doyle (appointed April 2022 after serving as Operating Partner since 2014).

Recent organizational developments include the addition of Rick Lopez as Managing Director in 2025, bringing over 25 years of experience in finance, investment banking, and private equity. Lopez previously served as Partner and Co-Founder at Rush Street Capital and had assisted Blackford Capital as an advisor between 2016 and 2024, completing 18 different mandates and raising over $367 million in capital before joining full-time.

The firm’s ownership structure remains concentrated among its founding team and senior management, with no indication of external institutional ownership or recent ownership transfers. Blackford Capital’s approach of raising capital on a deal-by-deal basis through high net worth individuals provides operational flexibility while maintaining control within the founding management team.

5) Financial Position

Blackford Capital demonstrates strong financial health indicators as a privately-held private equity firm, supported by consistent portfolio growth, operational expansion, and successful value creation strategies across its lower middle-market investment approach.

The firm’s assets under management have grown substantially since its 2010 founding, with current portfolio revenues exceeding $550 million annually across 18 current and realized portfolio companies, employing over 2,200 individuals. This operational scale represents significant growth from the firm’s early years and indicates successful capital deployment and portfolio company value creation. Blackford Capital manages a current portfolio of 9 companies, having completed 52 investments and 14 exits since inception, demonstrating active portfolio management and successful exit execution.

Recent transaction activity indicates robust operational health, with the firm completing five acquisitions in 2024 including the launch of its Fire Safety Consolidation Platform through the acquisition of Security Fire Systems and four strategic add-on investments across existing platforms. This acquisition pace demonstrates access to adequate capital resources and disciplined investment execution capabilities. The successful December 2024 sale of Mopec Group to Waud Capital Partners after 11 years of ownership provides significant cash flow and demonstrates the firm’s ability to execute profitable exits.

Blackford Capital’s unique capital structure relies on approximately 1,800 high net worth individual limited partners contributing an average of $50,000-$100,000 per fund, creating a retail-focused approach that differs from institutional private equity models. This diversified investor base provides operational flexibility while requiring extensive investor relations management. The firm operates through a deal-by-deal capital raising approach rather than traditional fund structures, allowing for targeted investment opportunities while maintaining capital deployment flexibility.

Organizational expansion indicators support positive financial trajectory, with the firm growing from 11-50 employees to 16 professionals currently, including key leadership additions such as Chief Financial Officer Ken Wagner in February 2022 and Managing Director Rick Lopez in 2025. The firm has expanded its operational footprint with offices in Grand Rapids, Detroit, and Chicago, indicating geographic growth and enhanced market coverage capabilities.

Industry recognition provides validation of financial performance and operational excellence, with Blackford Capital receiving multiple awards including Private Equity Firm of the Year recognition from The M&A Advisor in 2018, 2021, and 2022, and inclusion on Inc. Magazine’s Founder-Friendly Investors list for two consecutive years. The firm was also named to the 2024 Inc. 5000 list as one of America’s fastest-growing companies with staffing growth of nearly 30% and three-year revenue growth.

Credit and operational stability are evidenced by the firm’s 15-year operating history, successful completion of over 50 transactions, and maintenance of an active deal pipeline evaluating multiple investment opportunities. The firm’s Exempt Reporting Adviser (ERA) status under SEC regulations demonstrates regulatory compliance and operational maturity. Blackford Capital’s ability to execute complex add-on acquisitions and platform integrations across multiple sectors indicates sophisticated operational capabilities and access to financing resources.

6) Market Position

Blackford Capital operates within the lower middle-market private equity sector, serving as a specialized investment firm targeting founder and family-owned businesses with revenues ranging from $20-200 million and EBITDA of $3-20 million. The firm differentiates itself through its geographic focus on the Midwest region, particularly Michigan, where it has established deep market penetration and industry relationships since its 2010 founding.

The competitive landscape for lower middle-market private equity includes regional competitors such as Huron Capital in Detroit, OA Private Capital in Grand Rapids, Lorient Capital in Birmingham, and Rockbridge Growth Equity in Detroit. Blackford Capital distinguishes itself from these competitors through its retail-focused capital structure, utilizing approximately 1,800 high net worth individual limited partners rather than traditional institutional investors, providing operational flexibility and deal-by-deal investment approach.

Blackford Capital’s market positioning emphasizes sector specialization in manufacturing, industrial automation, distribution, and consumer products, with demonstrated expertise in platform consolidation strategies. The firm has successfully launched multiple consolidation platforms including Fire Safety Consolidation Platform through Security Fire Systems acquisition, Industrial Automation Platform through PACIV, and Outdoor Living Group Platform through Starfire Direct and Artificial Turf Supply acquisitions. This platform strategy enables the firm to leverage synergies, achieve geographic expansion, and drive market share growth within fragmented industries.

Client concentration analysis reveals diversified portfolio exposure across multiple sectors and geographic regions. Current portfolio companies generate over $550 million in annual revenue and employ over 2,200 individuals across 10 U.S. states, Puerto Rico, Ireland, Germany, and China. The firm’s investment approach focuses on companies with stable cash flows, proven profitability, and strong growth potential, reviewing between 3,000-5,000 acquisition opportunities annually and selecting approximately 50 for detailed due diligence.

Brand recognition within the private equity industry has been enhanced through consistent industry awards and recognition. Blackford Capital has received Private Equity Firm of the Year honors from The M&A Advisor in 2018, 2021, and 2022, and inclusion on Inc. Magazine’s Founder-Friendly Investors list for two consecutive years. The firm was also named to the 2024 Inc. 5000 list as one of America’s fastest-growing companies with staffing growth of nearly 30% and three-year revenue growth.

Distribution capabilities are supported by the firm’s geographic expansion strategy, maintaining headquarters in Grand Rapids with additional offices in Detroit and Chicago to enhance market coverage. The firm’s operating partner network includes industry specialists with expertise in digital commerce, sourcing, and operational excellence, providing portfolio companies access to specialized knowledge and best practices across sectors.

Regulatory positioning as an Exempt Reporting Adviser (ERA) under SEC regulations provides operational advantages while maintaining compliance requirements appropriate for the firm’s capital structure and investment approach. Operational capabilities include sophisticated due diligence processes, active portfolio management through board representation, and value creation strategies including operational improvements, strategic acquisitions, and management development programs.

Technology infrastructure supports the firm’s deal sourcing and portfolio management activities, with systematic evaluation processes that have resulted in 52 investments and 14 successful exits since inception. The firm’s operational excellence is demonstrated through successful value creation examples including Custom Profile’s 124% revenue growth during ownership and Quality Aluminum Products’ 120% net revenue increase leading to successful exit to Gibraltar Industries.

7) Legal Claims and Actions

Based on a comprehensive review of regulatory filings, court records, and enforcement databases covering the 10-year period from 2015 to 2025, Blackford Capital maintains a clean regulatory and legal record with minimal litigation exposure across all jurisdictions where the firm operates.

The only identified legal matter involving Blackford Capital entities during this review period relates to Empire Distributing, a portfolio company subsidiary. On September 2, 2025, Tulsa Nights Entertainment Group Inc. filed a complaint against Empire Distributing Inc., along with Spotify USA Inc. and Vydia Inc., in the U.S. District Court for the Northern District of Texas. The case is classified as “Other Statutes: Other Statutory Actions” with a cause of action under “28 U.S.C. § 1331 Federal Question: Other Civil Rights”. The plaintiff was ordered to retain legal counsel for the action to proceed, with initial deadlines extended to October 2, 2024, and the court noting that failure to comply may result in dismissal for failure to prosecute pursuant to Federal Rules of Civil Procedure Rule 41(b). No monetary penalties or specific damages have been disclosed in the initial filings.

No regulatory enforcement actions, sanctions, or penalties have been identified against Blackford Capital by the Securities and Exchange Commission, Financial Industry Regulatory Authority, or other regulatory bodies during the review period. The firm’s status as an Exempt Reporting Adviser (ERA) under SEC regulations appears to be maintained in good standing without any compliance violations or regulatory citations.

No criminal charges, international sanctions violations, anti-money laundering breaches, or employment litigation matters have been identified involving Blackford Capital, its executives, or its portfolio companies during the 10-year review period. The firm’s clean regulatory record aligns with its operational focus on lower middle-market manufacturing, distribution, and industrial companies, which typically present lower regulatory risk profiles compared to financial services or highly regulated industries.

The absence of material legal and regulatory issues during Blackford Capital’s 15-year operating history demonstrates consistent adherence to applicable securities regulations and operational compliance standards across its investment activities and portfolio management functions.

8) Recent Media

Media coverage between 2023 and 2025 reflects a period of active deal-making, strategic platform expansion, and multiple industry awards for Blackford Capital, contrasted by significant operational and financial challenges, including the failure of two portfolio companies. The firm’s executives have also been featured in media, providing commentary on market conditions and business strategy.

Recent media highlights a high transactional cadence, including the successful exit of Mopec Group to Waud Capital Partners, announced in January 2025 after an 11-year holding period. Throughout 2023 and 2024, the firm executed numerous acquisitions to build out strategic platforms. This included creating an Industrial Automation platform with the acquisition of PACIV in 2023, followed by add-on acquisitions of Data Science Automation in January 2024, Eight12 Automation in June 2024, and Ace Controls in January 2025. The firm also expanded its Patio Consolidation Platform with the acquisition of Empire Distributing in October 2024, and launched a new Fire Safety platform with the acquisition of Security Fire Systems in December 2024. In November 2024, Blackford announced an investment in Texas Injection Molding, marking its third platform in the specialty manufacturing sector. In February 2023, media reported that the firm was raising $75 million to fund growth at its existing portfolio companies.

Significant adverse media coverage has centered on portfolio company failures. In 2025, Crain’s Grand Rapids Business reported that Blackford Capital’s portfolio company, Davalor Mold Company, was shutting down and laying off all 45 employees, with the closure attributed to a “significant loss of revenue”. The shutdown announcement came approximately one year after Davalor’s add-on acquisition of Industrial Molding Corporation in July 2024. This event followed the 2022 failure of another portfolio company, Grand Power Systems Inc., which entered court-ordered receivership and was sold, resulting in a loss for Blackford’s limited partners in that deal. In a press release, the firm also confirmed its exit from its Imaging Supplies Consolidation portfolio, including Cartridge World USA, citing an “unrecoverable decline in print volumes” and performance that was “inconsistent with Blackford’s track record”.

Key executive changes and commentary have also been noted in the media. In 2025, the firm announced the hiring of Rick Lopez as Managing Director to lead fundraising efforts from a new Chicago office. In late 2024, Blackford announced the appointments of John Snowden as CEO of its Patio Consolidation Platform and Scott Osterling as CEO of Davalor Mold Company. Francis X. Dirksmeier was appointed CEO of portfolio company Mopec in September 2023 after what was described as a three-year search. In an interview with Crain’s Grand Rapids Business, Founder and Managing Director Martin Stein discussed the operational challenges posed by tariffs, citing their “dramatic impact” on the supply chain of portfolio company Aqua-Leisure Industries and the difficulty it creates for business planning.

Despite operational challenges, Blackford Capital and its executives received numerous awards between 2023 and 2025. The firm was named M&A Dealmaker of the Year by ACG Detroit in March 2023. It was also recognized by Buyouts magazine with the 2023 Small Market Deal of the Year for its exit of Quality Aluminum Products. The M&A Advisor honored Managing Director Jeffrey Johnson as the 2023 Private Equity Professional of the Year and recognized the firm’s acquisition of PACIV with an International Deal of the Year award in 2024. For 2023 and 2024, Inc. Magazine named Blackford to its list of Founder-Friendly Investors, and in 2024, placed both the firm and its portfolio company Artificial Turf Supply on the Inc. 5000 list of fastest-growing private companies.

The “Blackford” name has appeared in media reports related to two separate, unrelated matters, creating a potential source of reputational risk through public confusion. In September 2025, federal authorities filed civil and criminal fraud charges against Daryl Heller, founder of companies including “Blackford ATM Ventures,” for allegedly orchestrating a multi-million-dollar Ponzi-like scheme; the SEC complaint stated that Heller funneled $92 million to a family of companies referred to as “Blackford”. Separately, the Isle of Man Financial Services Authority issued a public notice regarding a fraudulent entity, RVC Capital, that was using the name “Blackford Financial Services” and falsely claiming to be associated with a legitimate Isle of Man-based company. There is no information in the reviewed sources to suggest that the Grand Rapids-based Blackford Capital is connected to either of these matters.

9) Strengths

Experienced Leadership Team with Proven Track Record

Blackford Capital’s leadership team brings exceptional depth and continuity to the organization. Managing Director Jeffrey Johnson possesses 28 years of investment banking and private equity experience and has served on the boards of seven Blackford portfolio companies. Founder and Managing Director Martin Stein has over 18 years in private equity, having served on 15 platform portfolio company boards and completed over 50 acquisitions, investments, recapitalizations, and exits worth approximately $750 million in transaction value. Managing Director Carmen Evola contributes 25 years of leadership experience within diverse, multinational manufacturing companies, including his role as President and CEO of Vari-Form Group where he oversaw a $900 million portfolio. The executive team averages eight years of tenure, demonstrating remarkable stability for a firm founded in 2010.

Specialized Focus on Lower Middle-Market Manufacturing and Distribution

Blackford Capital has developed deep expertise in its target sectors of manufacturing, industrial, and distribution companies with revenues ranging from $20-200 million and EBITDA of $3-20 million. This specialization enables the firm to leverage industry-specific knowledge and operational best practices across portfolio companies. The firm’s sector focus has produced successful value creation, including Custom Profile’s 124% revenue growth with an 8.6% revenue compound annual growth rate during Blackford’s investment period. Their specialized approach allows for effective consolidation strategies, as demonstrated through multiple platform builds including Industrial Automation, Patio Consolidation, and Fire Safety platforms.

Strong Operational Excellence and Value Creation Capabilities

The firm maintains a comprehensive operational support structure through six operating partners and over 50 independent directors who provide expertise across all aspects of corporate operations. Operating Partner Chris Wilson brings nearly 30 years of direct-to-consumer marketing expertise, while Steve Feniger contributes over 30 years of international sourcing experience. This operational depth has delivered exceptional results, including Quality Aluminum Products’ 120% net revenue increase leading to successful exit to Gibraltar Industries. The firm’s commitment to operational excellence has been recognized through multiple Private Equity Firm of the Year awards from The M&A Advisor in 2018, 2021, and 2022.

Unique Retail-Focused Capital Structure Providing Investment Flexibility

Blackford Capital operates with an innovative capital structure utilizing approximately 1,800 high net worth individual limited partners contributing an average of $50,000-$100,000 per fund. This retail-focused approach differs significantly from institutional private equity models, providing operational flexibility through deal-by-deal capital raising rather than traditional fund structures. This structure allows for targeted investment opportunities while maintaining disciplined capital deployment and enables the firm to move quickly on attractive deals without traditional fund constraints.

Lengthy Operating History with Consistent Growth

Since its 2010 founding, Blackford Capital has established a 15-year operating history demonstrating consistent growth and performance. The firm has completed 52 investments and 14 exits, managing a current portfolio of 9 companies with over $550 million in annual revenue employing more than 2,200 individuals. Portfolio companies operate across 10 U.S. states, Puerto Rico, Ireland, Germany, and China, demonstrating successful geographic expansion capabilities. The firm’s longevity and growth trajectory provide stability and credibility for stakeholders while maintaining an active deal pipeline evaluating multiple investment opportunities annually.

Industry Recognition and Award-Winning Performance

Blackford Capital has received extensive industry recognition validating its performance and approach. The firm has been honored with Private Equity Firm of the Year awards from The M&A Advisor three times and received Deal of the Year recognitions in multiple categories. Managing Director Jeffrey Johnson has been named Private Equity Professional of the Year by The M&A Advisor twice, while Martin Stein has been recognized on the Grand Rapids 200 list for four consecutive years. The firm has been named to Inc. Magazine’s Founder-Friendly Investors list for two consecutive years and included on the Inc. 5000 list multiple times. These accolades demonstrate consistent excellence and industry leadership.

10) Potential Risk Areas for Further Diligence

Third-Party Risk Management and Vendor Dependencies

Blackford Capital’s reliance on external service providers across multiple operational functions creates potential vulnerabilities requiring enhanced oversight. The firm operates through a deal-by-deal capital raising approach utilizing an extensive network of wealth management professionals to channel investments from approximately 1,800 high net worth individual limited partners. This distributed capital structure requires comprehensive vendor management protocols for wealth advisors, placement agents, and financial intermediaries. Portfolio companies across 10 U.S. states, Puerto Rico, Ireland, Germany, and China generate dependencies on international service providers, custodians, and operational vendors that may lack consistent oversight standards. The firm’s recent technology infrastructure investments, including ERP implementations across portfolio companies, create additional third-party technology vendor dependencies requiring cybersecurity assessments and business continuity planning.

Operational Capacity Constraints and Scalability Risks

The firm’s rapid growth trajectory may strain organizational capacity and create operational bottlenecks. Blackford Capital has completed five acquisitions in 2024 while maintaining a current portfolio of 9 companies, with the deal team evaluating multiple investment opportunities. The firm’s lean structure of 16 professionals managing over $550 million in portfolio company revenue indicates potential capacity constraints as transaction volume increases. Recent leadership additions, including Managing Director Rick Lopez in 2025 and Chief Financial Officer Ken Wagner in February 2022, suggest recognition of capacity limitations requiring ongoing talent acquisition. The firm’s geographic expansion with offices in Grand Rapids, Detroit, and Chicago creates coordination challenges requiring enhanced communication protocols and management systems.

Regulatory and Compliance Vulnerabilities

As an Exempt Reporting Adviser (ERA), Blackford Capital operates under reduced regulatory oversight compared to registered investment advisers, creating potential compliance gaps. The firm’s unique retail-focused capital structure with approximately 1,800 individual limited partners requires sophisticated investor relations management and regulatory compliance across multiple jurisdictions. Recent regulatory guidance emphasizes enhanced oversight of private equity firms’ third-party relationships, operational resilience, and cybersecurity frameworks, potentially requiring significant compliance infrastructure investments. The firm’s international portfolio company operations across Ireland, Germany, and China create cross-border regulatory compliance obligations requiring specialized legal and operational expertise.

Business Continuity and Crisis Management Preparedness

The firm’s experience with portfolio company failures highlights the importance of robust crisis management and business continuity planning. Media reports indicate that portfolio companies Davalor Mold Company and Grand Power Systems Inc. have experienced significant operational challenges, with Davalor Mold Company shutting down in 2025 and Grand Power entering court-ordered receivership in 2022. These events demonstrate potential gaps in crisis management protocols and the need for enhanced early warning systems to identify distressed portfolio companies. The firm’s deal-by-deal capital structure may create liquidity constraints during market downturns or when multiple portfolio companies require simultaneous financial support.

Key Person Risk and Succession Planning

Blackford Capital’s organizational structure creates significant dependencies on founder Martin Stein and key executives, with potential succession planning vulnerabilities. Stein founded the firm in 2010 and maintains founder and managing partner ownership while leading acquisition sourcing activities. The recent addition of Managing Partner Paul Doyle in April 2022 after eight years as Operating Partner suggests recognition of succession planning needs, but the firm’s 15-year operating history under founder leadership creates institutional knowledge concentration risks. The average executive team tenure of eight years indicates stability but may also suggest limited external perspectives and potential groupthink risks requiring board oversight and strategic planning processes.

Technology and Cybersecurity Risk Management

The firm’s increasing reliance on technology infrastructure across portfolio companies creates cybersecurity vulnerabilities requiring enhanced risk management protocols. Recent ERP implementations and digital transformation initiatives across portfolio companies including Mopec Group and Design Environments create expanded attack surfaces requiring coordinated cybersecurity oversight. The firm’s geographic dispersion and international operations increase technology complexity and potential data protection compliance obligations under various privacy regulations. Portfolio companies’ technology dependencies for operational functions create business continuity risks requiring comprehensive disaster recovery planning and vendor security assessments.

Standard Industry Risk Considerations

The lower middle-market private equity industry faces inherent cyclical risks and market volatility that may impact portfolio company performance and exit opportunities. Regulatory changes affecting private equity taxation, fund structures, or operational requirements could necessitate significant compliance and operational adjustments. General economic downturns may affect portfolio company valuations, debt availability, and exit market conditions, requiring enhanced financial planning and liquidity management across the portfolio.

Sources

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