April 13, 2023

By Lynda Kiernan-Stone, Global AgInvesting Media

Representing its largest fundraise to-date, Iowa-headquartered Midwest Growth Partners (MGP) announced the close of its third investment fund oversubscribed at $170 million. 

Established in 2013, and with an additional office in Nebraska, MGP’s investment mission is to provide opportunities that will advance rural and underserved lower middle market companies across the U.S. that may be planning their succession, or are in need of growth capital. 

Serving as economic drivers, the firm and its investors write tickets ranging from $500,000 – $20 million for profitable organizations (depending on the structure of the deal and the nature of the transaction) within the food, agriculture, manufacturing, and distribution industries – investments that the firm indicated cultivate growth, create jobs, professionalize businesses, and aid in retiring or succession strategies. 

Across its three funds, the team has directly invested $140 million in 29 private businesses to-date, and has helped aggregate more than $500 million within those transactions in additional private co-investment capital. 

“Since starting MGP, the achievements we’ve realized here and within our portfolio companies have been remarkable and are the result of working with people who share our values of hard work and integrity,” said John Mickelson, co-founder and managing partner, Midwest Growth Partners. “Closing our third and largest fund is a huge milestone, and we’re looking forward to the next chapter.”

All-told, MGP is responsible for more than $325 million of private capital across its funds, representing portfolios with revenues totaling over $1 billion per year and employing 3,000 people. And although the firm’s focus is on established, growing businesses, the team is also open to evaluating distressed or turnaround opportunities, reflecting a unique approach that MGP stated differentiates it from other traditional private equity funds. 

These objectives are pursued by a team of investment principals and operating partners that have been CEOs, CFOs, and COOs of private companies able to leverage their experiences in senior leadership to assist portfolio company teams in heading a growth enterprise via financial structuring expertise, executive mentoring, and industry insight.

Looking forward, MGP stated that over the next five years plans are to make 10-15 investments through Fund III, made possible by the personal relationships that are fostered with its diverse range of investors including the Farm Credit System, family offices, commercial banks, corporations, trade organizations, and high-net-worth individuals. 

~ Lynda Kiernan-Stone is editor in chief with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, as well as HighQuest Group’s Unconventional Ag. She can be reached at lkiernan-stone@globalaginvesting.com.

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