Middle-market private equity occupies a distinct space. Companies are too large for venture capital but too small for mega-buyout funds. They need capital for growth, yet often lack the infrastructure to absorb hundreds of millions of dollars productively.
Waud Capital Partners has built a 32-year track record targeting this segment. The firm typically makes control investments between $75 million and $200 million in equity. Rather than financial engineering, value creation centers on operational improvements and add-on acquisitions.
Control Investments Between $75-$200 Million
The equity check size defines which companies Waud Capital can pursue. A $75 million investment might support a company with $50-75 million in revenue, depending on valuation multiples and leverage. A $200 million investment targets larger businesses, perhaps $150-300 million in revenue.
Control ownership distinguishes Waud Capital’s approach from minority growth equity. The firm generally takes majority stakes, enabling it to influence board composition, management decisions, and capital allocation.
Control brings responsibility. If a portfolio company underperforms, the firm cannot blame minority status or limited influence. Reeve Waud and his partners must address operational issues, replace underperforming executives, or adjust strategy.
Geographic focus remains North American. While some portfolio companies have international operations, Waud Capital sources deals and maintains offices in the United States. This geographic concentration allows the team to visit facilities, attend board meetings, and maintain close management relationships.
Human Capital as Central Strategy
“Human capital is at the heart of everything we do at WCP,” Reeve Waud has stated. This philosophy manifests in several ways: recruiting CEOs before acquiring companies, maintaining a five-person internal human capital team, and employing operating partners with industry experience.
The firm often identifies attractive subsectors through research, then recruits executive talent to lead a platform investment. Rather than finding a company first, Waud Capital might find a CEO first, then search together for the right acquisition opportunity.
This approach requires patience. Recruiting experienced executives takes time. Identifying the right platform investment may require evaluating dozens of companies. But Reeve Waud believes pairing strong management with good opportunities produces better outcomes than accepting weaker management with great opportunities.
Waud Capital’s internal human capital team supports this process. The five-person team maintains relationships with executives across healthcare and software sectors, tracks CEO movements, and facilitates introductions between the firm and potential management partners.
Board Leadership Across Portfolio
Control investments require active board participation. Reeve Waud serves as chairman or director of multiple portfolio companies. His board service at Acadia Healthcare, where he has served since December 2005, exemplifies sustained engagement.
Other Waud Capital partners similarly take board seats at portfolio companies. Chris Graber, Partner and Head of Healthcare Group, serves on the boards of numerous healthcare investments. Matthew Clary, Partner and Co-Head of Software & Technology investments, maintains board positions at software portfolio companies.
Board service provides oversight but also support. Directors review financial performance, approve major transactions, and evaluate CEO performance. They also connect management teams with industry contacts, advise on strategic decisions, and share lessons from other portfolio companies.
Since founding Waud Capital Partners in 1993, Reeve Waud has led or overseen more than 500 company acquisitions. This experience informs board discussions about acquisition targets, integration approaches, and operational improvements.
The firm has completed more than 460 investments since 1993, including both platform companies and add-on acquisitions. For realized investments, Waud Capital reports average revenue growth exceeding 400% during the firm’s ownership period.
