Forest Lane Capital Research
Overview & Advisory Approach
Forest Lane Capital is a Pittsburgh-based private investment firm backed by committed family office capital that acquires control equity stakes in founder-led and family-owned businesses in the lower middle market. Rather than serving as advisors to sellers, Forest Lane operates as an active buyer and strategic partner, seeking to invest in companies with enterprise values and operational profiles that align with their thesis-driven investment approach.
The firm's core philosophy centers on "work hard, repeat" — a belief that consistency, perseverance, and hard work are the primary drivers of success. They differentiate themselves through committed capital (no fund life pressures), patient capital with a long-term investment horizon, and direct operational involvement through their team of experienced professionals and operating partners.
Investment Thesis & Sweet Spot
Forest Lane Capital targets founder-owned and family-owned businesses in a specific financial and operational sweet spot:
Financial Profile:
- Revenue: $5M-$50M (lower middle market)
- EBITDA: $1M-$5M
- EBITDA Margins: >10%
Ideal Situations:
- Family succession scenarios where owners want to exit or transition ownership
- Management buyouts where management teams seek capital and partnership
- Recapitalizations where founders/families want to maintain equity ownership and involvement
- Corporate carve-outs and spin-offs
- Owners willing to roll over significant portions of proceeds into the new entity
- Founder-led teams comfortable with hands-on operational partnership
The firm particularly excels with owner-operators who are willing to stay involved post-acquisition and who embrace a collaborative, value-creation approach rather than a purely passive financial investment.
Industry Focus & Deal Track Record
Forest Lane Capital has built deep expertise across three core verticals:
Niche Manufacturing (Primary Focus) The firm has invested in specialized manufacturing operations including precision machining, contract manufacturing, specialty chemicals, building products, and equipment manufacturing. Their niche manufacturing practice is led by experienced operators (Mike Hartley, former CEO with multiple successful PE-backed exits) who understand plant-level economics and operational complexity.
Recent investments include ARS Recycling Systems (March 2025), acquired Lowellville, Ohio-based manufacturer of patented steel abrasive blasting and dust collection equipment used in marine and bridge maintenance. Other historical investments include Piranha (2023) and various add-on acquisitions.
Value-Added Distribution Forest Lane maintains an active practice in specialized distribution of industrial products and supplies. Their value-added distribution expertise is led by Steve Michalski (Operating Partner), a perpetual PE-backed CEO with track record at Frontenac Company, Pfingsten Partners, Audax, and other leading lower middle market PE firms.
This vertical includes their investment in HTG Supply (July 2021), a leading omni-channel retailer and manufacturer of indoor gardening supplies with 20+ brick-and-mortar locations and ecommerce/distribution channels serving both commercial and hobbyist growers.
Business Services The firm also focuses on specialized business services and operational support businesses, as evidenced by their investment in Meritech Systems (January 2019), a leading developer and manufacturer of fully-automated hand washing and boot scrubbing systems for food processing, healthcare, pharmaceutical, and other hygiene-sensitive industries.
Transaction History & Portfolio
Forest Lane Capital has demonstrated steady deal flow and active portfolio management:
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Meritech Systems (January 2019) — Acquired leading employee hygiene systems manufacturer serving food, healthcare, pharmaceutical, and cruise ship industries. Later co-invested with Booth Park Capital, Resolute Capital Partners, and Citizens in a recapitalization (September 2025).
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HTG Supply (July 2021) — Acquired leading omni-channel indoor gardening supplies retailer with 20+ retail locations, ecommerce, and distribution channels. Currently seeking add-on acquisitions in the gardening/hydroponics space.
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ARS Recycling Systems / ARS Systems (March 2025) — Acquired Lowellville, Ohio manufacturer of steel grit recycling and abrasive blasting equipment. Formed ARS Systems as consolidation platform and completed acquisition of ARS Recycling.
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Simply Hydroponics (April 2025) — Acquired online hydroponic supplies retailer as strategic add-on to strengthen HTG Supply's product offering, online presence, and reach across commercial and enthusiast grower segments.
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Piranha (2023) — Acquired (specific details limited in public sources but mentioned in Artemis Transaction Advisors industrial equipment newsletter as 2023 transaction).
Forest Lane Capital has been actively executing transactions throughout 2024-2025, demonstrating consistent deal flow and operational execution capability.
Team & Operational Approach
The firm operates with a lean, experienced team structure combining investment professionals with seasoned operating partners:
Investment Professionals:
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Joel Pokorney, CFA (Founder & Managing Partner) — 15+ years M&A and lower middle market investing experience. Previously 5 years with Tecum Capital Partners (control equity family office/SBIC fund), 6 years with PNC Corporate Banking division. Involved in 20+ acquisitions and serves on multiple portfolio company boards. Finance major, Wake Forest University.
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Mike Williamson (Partner) — 10+ years lower middle market investing experience. Previously 5 years with Tecum Capital Partners, 1.5 years with Stewart Capital Advisors. Involved in 15+ transactions. Finance major with mathematics minor, Indiana University of Pennsylvania.
Operating Partners (Hands-On Value Creation):
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Mike Hartley (Operating Partner, Niche Manufacturing) — Serial entrepreneur and CEO with multiple successful exits to PE (Grey Mountain Partners, Superior Capital Partners, Rockwood Equity) and Fortune 100. Deep background in refractory machining, architectural/security glass fabrication, and operational turnarounds. Accounting major, Ohio University.
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Steve Michalski (Operating Partner, Value-Added Distribution) — Perpetual PE-backed CEO with experience at Frontenac Company, Pfingsten Partners, Audax. Proven track record in organic growth and two successful PE exits. 15+ years running sales organizations for lower middle market companies. Marketing major, Elmhurst College.
The operating partner model is a key differentiator — rather than hiring traditional consultants, Forest Lane leverages experienced executive operators who have walked in the shoes of portfolio company leadership.
Deal Sourcing & Buyer Network
Forest Lane Capital sources deals through a combination of direct outreach to founder-owned businesses, relationships with brokers and M&A advisors, operating partner networks, and industry vertical expertise. Recent transactions show relationships with established M&A advisors including Blue River Financial Group and Citizens Bank.
Competitive Positioning
Forest Lane Capital differentiates from other lower middle market buyers through:
- Patient Capital — Family office capital with no fund life pressures allows for long-term, strategic decision-making.
- Operational Expertise — Operating partner team brings hands-on CEO experience and successful prior exits.
- Committed Capital — Sufficient capital in place to fund any transaction without outside equity raises.
- Vertical Expertise — Deep experience in niche manufacturing, value-added distribution, and business services.
- Partnership Approach — Philosophy of shared upside economics and collaborative value creation.
- Add-On Capability — Demonstrated ability to execute add-on acquisitions to drive platform growth.
Not a Fit If
Forest Lane Capital typically avoids businesses below $5M revenue, non-recurring revenue models, cyclical/commodity industries, significant concentration risk, or situations where founders are not willing to remain involved.
Geographic Coverage
- Primary focus: Continental United States and Canada
- Headquarters: Pittsburgh, PA
- Core operating team based in Pittsburgh with national sourcing
Recent Activity & Momentum
Forest Lane Capital has been actively executing deals in 2024-2025:
- ARS Recycling Systems acquisition (March 2025) with ARS Systems consolidation platform formation
- Simply Hydroponics acquisition (April 2025) as strategic add-on to HTG Supply
- Meritech recapitalization with additional capital partners (September 2025)
- Reported team size of approximately 6 people (4 partners/leadership)
The firm demonstrates consistent deal flow, operational execution capability, and ability to add value across target portfolio companies through direct operating partner involvement and add-on acquisition execution.