WEST DES MOINES, Iowa – Midwest Growth Partners (MGP), a leading private equity firm based in Iowa, has announced the successful closing of its third investment fund, Fund III. The fundraise, which began in the second quarter of 2022, surpassed its initial target, securing $170 million to invest in established lower middle market companies. This achievement marks MGP’s largest fundraising effort to date and underscores its commitment to fostering growth and opportunity in rural and underserved businesses across the United States.
Since its inception in 2013, Midwest Growth Partners has established itself as a trusted partner for businesses seeking capital for succession planning, liquidity, or growth initiatives. The firm’s approach is rooted in a deep understanding of the challenges and opportunities within the lower middle market, particularly in sectors crucial to the American economy. MGP’s team distinguishes itself through hands-on operational expertise and backgrounds deeply connected to agriculture, providing a unique perspective and valuable support to its portfolio companies. This combination of financial acumen and practical experience enables Midwest Growth Partners to drive significant growth and professionalization within its partner companies, ultimately generating strong returns for investors.
To date, Midwest Growth Partners has directly invested over $140 million across 29 private businesses through its three funds. These investments have also catalyzed over $500 million in additional private co-investment capital, amplifying the firm’s impact. Fund III will continue this trajectory, focusing on investments within the U.S. food and agriculture, manufacturing, and distribution industries. Notably, MGP frequently targets companies located in rural and underserved areas, recognizing their vital role in the nation’s economic fabric and their potential for significant growth with the right investment and strategic guidance.
Midwest Growth Partners and its diverse investor base act as significant economic catalysts, deploying investments ranging from $500,000 to $20 million into profitable organizations. These strategic capital infusions are designed to fuel expansion, create jobs, enhance business operations, and facilitate smooth succession planning for business owners preparing for retirement. Over the next five years, Fund III is projected to facilitate 10 to 15 new investments, building upon the foundation of hard work by the MGP team and the strength of its investor partnerships. MGP cultivates strong, personal relationships with a varied group of investors, including Farm Credit System institutions, family offices, commercial banks, corporations, trade organizations, and successful individuals who share the firm’s vision for impactful investment.
“The progress we’ve made since founding MGP, both within our firm and across our portfolio companies, is truly remarkable. It’s a testament to our commitment to working with people who embody hard work and integrity,” stated John Mickelson, Co-Founder and Managing Partner at Midwest Growth Partners. “The successful closing of our third and largest fund is a significant milestone, and we are excited about the opportunities that lie ahead.”
About Midwest Growth Partners
Headquartered in Iowa, with a secondary office in Nebraska, Midwest Growth Partners manages over $325 million in private capital across three funds. The firm specializes in investments in established companies within the food and agriculture, manufacturing, and distribution sectors. Collectively, MGP’s current portfolio companies generate over $1 billion in annual revenue and employ more than 3,000 individuals, demonstrating the firm’s substantial economic footprint and commitment to growth.
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Sophie Stover
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