Arvore Partners: Our private equity vertical invests in the lower market where cashflow can be acquired at compelling multiples, then serially consolidated in selected verticals to drive exits. Arvore provides monthly distributions and recurring equity optionality within an evergreen offering. The AUM in our private equity vertical is ~$500M+.
Arvore believes the $1M-$10M EBITDA segment is one of the most overlooked and compelling sources of alpha in the private equity markets. Our distributing, evergreen structure provides investors with high monthly distributions while retaining strong equity optionality.
We have been investing in the lower market since 2013. Our fund structure includes many unique features that work to align LP/GP interests and improve LP economics – in particular a non-discretionary monthly sweep of cashflow to create an ongoing distribution stream, combined with regular special distributions sweeps of the gains generated on the disposition of assets. The overall impact is to reduce investment duration, increase DPI while still being capable of traditional PE rates of return. Our model derisks investor returns as it has a low reliance on leverage, organic earnings growth and terminal multiple expansion. Even so, we are highly successful at organically growing the earnings at our business through our EquiONE platform and have consistently generated 6%+ CAGRs.
Over 75% of North American small and mid-sized business owners are expected to retire in next decade,with limited succession planning. This creates a once-in-a-generation supply of quality businesses for acquisition—often at compelling valuations due to lack of buyer competition.
The lower market space is significantly undercapitalized compared. While large buyout funds chase billion-dollar deals, fewer professional investors target companies with $1M–10M EBITDA. This scarcity of organized capital gives well-positioned investors leverage in pricing and structuring.
Lower market investing consistently delivers top-quartile private equity returns, but it comes with less crowding and higher information asymmetry—ideal conditions for alpha generation.
North America has a mature base of consolidators, public companies, and buyers actively seeking lower mid-market acquisitions. With the right operational support, platform companies can be scaled via consolidation to the critical $15–25M EBITDA mark—where the M&A market is deepest, and valuations are richest.