Industrial Impact: Elevating Operational Value in the Lower Middle Market

Client Overview

Our client is a Los Angeles-based lower-middle-market private equity firm with ~$1 billion in capital commitments. They specialize in operational transformation and strategic repositioning across a broad range of industrial sectors. Now deploying capital from their second fund, the firm makes opportunistic, control-oriented investments, collaborating closely with portfolio management teams to drive transformation, M&A, and long-term value creation.

The Challenge / Mandate

The client engaged us to find an Operating Partner responsible for evaluating and conducting due diligence on new investment opportunities, leading post-close transformation, and providing oversight across portfolio companies. The role required significant operational leadership, a consulting-level problem-solving toolkit, and the executive presence to guide transformations and represent the firm at the board level.

The selected candidate would:

• Lead value creation efforts across four engagements
• Evaluate operational diligence alongside the deal team
• Develop an operations playbook
• Work closely with portfolio company management to define and execute strategic initiatives, drive transformation, and enhance performance

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Responsibilities spanned from investment evaluation and modeling, to post-close transformation, M&A integration, talent development, and eventual exit readiness.

Search Strategy

We focused on seasoned operators with a demonstrated ability to drive transformation in industrial environments, ideally with prior P&L responsibility. The ideal candidate would bring a combination of operating and consulting experience—ideally top-tier management consulting and hands-on operational leadership within industrial companies.

Key characteristics included a low-ego, results-driven leadership style, and the ability to articulate and execute value-creation strategies. Strong candidates demonstrated deep understanding of operational levers, competitive dynamics, and scalable change management. Preference was given to those with Six Sigma, lean, or transformation credentials and a strong academic track record, including MBAs from top-tier institutions.

The Placement

We placed multiple candidates at both the Operating Partner and Principal levels.

Candidate 1 was a multi-time CEO with a history of successful turnarounds in PE-backed HVAC and filtration businesses. He began his career at GE as a Six Sigma Black Belt and progressed through senior roles at CI, Lydall, and AAF International. Known for driving exponential EBITDA growth, his deep technical knowledge and proven leadership made him a cornerstone addition to the portfolio operations team.

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Candidate 2 brought dual transformation leadership experience from his time as Chief Transformation Officer at two technology-driven industrial firms—one focused on electric vehicle charging and the other on audio solutions. He previously served as an Associate Partner at McKinsey, where he specialized in complex change management initiatives. His blend of consulting and in-house transformation experience positioned him as a bridge between strategic design and operational execution.

Candidate 3 was a senior leader in BCG’s Corporate Finance & Strategy, Industrial Goods, and Digital practice areas. He had extensive experience leading large-scale transformation and integration projects for major industrial clients, including cost transformations, pricing excellence, and digital initiatives. His strong consulting foundation, paired with experience in Europe and across multiple verticals, brought a global lens to portfolio operations.

The Outcome

The new Operating Partners have begun collaborating across the firm’s portfolio, working in tandem to evaluate new investments, implement operational improvements, and support company leadership in delivering strategic plans.

Together, the team has developed a robust operations playbook and is driving a consistent approach to transformation across active engagements. Their combined strengths—ranging from CEO-level execution to consulting-driven problem solving—are creating strong alignment between value creation initiatives and firm-wide investment theses.

This coordinated approach is enabling the firm to accelerate post-close impact, strengthen management teams, and increase the pace of value realization across its industrial portfolio.