MFG Partners Research
IMPORTANT NOTE: MFG Partners is a private equity investment firm, not an M&A advisory firm. They make control investments in manufacturing and industrial companies rather than advising business owners on sales. This research documents their investment thesis, portfolio, and track record.
Investment Approach
MFG Partners, founded in 2016 by Jeff Mizrahi and Jonathan Schilowitz, operates as a lower-middle market private equity firm specializing in family-owned, founder-owned, and management-owned industrial businesses. The firm's core thesis centers on identifying manufacturing and industrial services companies with sustainable competitive advantages and untapped growth potential. Rather than pursuing operational turnarounds, MFG focuses on partnering with existing management teams to drive organic growth while maintaining founder-led culture and values.
The firm's investment philosophy emphasizes long-term value creation through collaboration with existing leadership, operational investment, and strategic acquisitions. MFG operates with a deal-by-deal structure initially, but launched its debut commingled fund targeting $300-350 million to provide institutional capital to its investment strategy.
Sector Specialization
MFG Partners concentrates its investments across three primary sectors within the industrial economy:
Manufacturing & Discrete Operations: The firm invests in precision manufacturing, HVAC components, electrical contracting platforms, and wire & cable manufacturing. These businesses typically serve aerospace, defense, HVAC, and electrical distribution markets. Portfolio companies like Regency Electric (electrical contracting platform) and Elgen Manufacturing (HVAC components) exemplify this focus.
Industrial Services & Distribution: MFG maintains significant exposure to value-added distribution businesses, industrial utilities services, and specialized services. Portfolio companies such as CST Utilities (infrastructure utility services), Storage Solutions (security storage systems), and Chuck's Septic Tank & Drain Services demonstrate the firm's reach into essential services serving both commercial and residential markets.
Specialized Industrial Services: The firm also invests in communication and logistics services, as evidenced by their investment in Mail Communications Group (omnichannel communication services providing printing, presorting, and logistics).
Investment Sweet Spot
MFG Partners targets family and founder-owned companies in the lower-middle market, typically with enterprise values between $10 million and $100 million. The ideal MFG investment exhibits the following characteristics:
- Strong founder or family leadership committed to long-term value creation
- Established market position with sustainable competitive advantages
- Potential for organic revenue growth (10-15% annually) combined with margin expansion
- Operational efficiency gains through technology, process optimization, or strategic acquisitions
- Management teams motivated to build generational value rather than harvest short-term gains
- Geography: Primarily North American, with emphasis on Midwest and Northeast industrial hubs
Investment Process & Value Creation
MFG Partners employs a consistent value-creation process centered on identifying operational leverage opportunities within portfolio companies. The firm's approach prioritizes:
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People Investment: MFG believes its most important asset is its people — both the management teams of portfolio companies and its own investment professionals. The firm retains existing leadership rather than replacing management, creating stability and continuity.
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Organic Growth: Rather than pursuing aggressive EBITDA multiples expansion, MFG focuses on growing revenue organically through market development, product innovation, and operational improvements. Portfolio companies typically target double-digit annual revenue growth.
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Bolt-On Acquisitions: Once a platform company is stabilized, MFG identifies complementary bolt-on acquisition opportunities to expand capabilities, geographic reach, or end-market exposure. This proven model creates synergies while leveraging existing management infrastructure.
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Operational Excellence: MFG partners with portfolio companies to implement systems, processes, and technology investments that improve operational efficiency and scalability.
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Exit Optionality: MFG pursues strategic exits to larger industrial companies, other PE firms, or management buyouts. The firm's recent exits demonstrate strong relationships with strategic acquirers and secondary PE firms.
Deal Track Record
MFG Partners has completed a portfolio of 8+ platform investments with 4-5 successful exits demonstrating strong value creation:
Recent Exits:
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Elgen Manufacturing → Worthington Enterprises (June 2025, ~$93 million): MFG partnered with Merit Capital Partners in a co-investment. Worthington Enterprises (NYSE: WOR), a leading steel processors and industrial products company, acquired the Elgen platform to expand its HVAC components capabilities. This represents a successful exit to a strategic industrial acquirer.
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A-Z Wire & Cable → LindFast Solutions/Nautic Partners (January 2026): After holding A-Z Wire & Cable in its portfolio, MFG Partners exited to LindFast Solutions Group, a portfolio company of Nautic Partners, signaling strong demand for industrial distribution and manufacturing assets.
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Storage Solutions → Jungheinrich AG: MFG exited Storage Solutions, a security storage and fire-rated storage systems company, to Jungheinrich AG, a European material handling and warehouse automation leader, reflecting successful geographic expansion opportunities.
Current Portfolio (as of March 2026):
- Regency Electric: Invested November 2025. A Denver-based electrical contracting platform with growth investments and bolt-on acquisition opportunities.
- CST Utilities: Infrastructure utility services provider.
- Mellott Company: Aggregate processing and construction materials company (acquired 2021).
- Mail Communications Group: Omnichannel communication services including presorting, printing, and mail logistics (Des Moines, Iowa).
- Chuck's Septic Tank & Drain Services: Essential services provider in septic system maintenance.
Historical Exits:
- LCR Contractors (insulation/specialty construction)
Geographic Reach
MFG Partners operates primarily across North America, with particular strength in:
- Midwest: Strong presence in Illinois, Ohio, Indiana, Michigan, Wisconsin (industrial heartland)
- Northeast: New York, Pennsylvania, New Jersey
- South: North Carolina, Georgia (emerging growth markets)
- West: Colorado, California (selective investments)
The firm maintains its headquarters in New York (1330 Avenue of the Americas) to facilitate institutional relationships and fundraising while sourcing deals through a combination of direct relationships, broker networks, and proprietary deal sourcing.
Competitive Positioning
MFG Partners differentiates in a crowded lower-middle market PE landscape through:
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Founder-Friendly Approach: Emphasis on retaining founder and family leadership rather than wholesale management replacement creates differentiation in family-owned market.
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Operational Rigor: The firm brings significant operational experience, industry expertise, and functional capabilities without the bureaucratic overlay of larger PE firms.
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Long-Term Partnership: Rather than pursuing aggressive financial engineering or short-holding periods, MFG commits to 5-7+ year partnerships, enabling sustainable growth and organic expansion.
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Industry Expertise: Partners like Jeff Mizrahi bring prior experience at Sand Oak Capital and leadership in the independent sponsor market, lending credibility and deal sourcing capability.
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Strategic Exit Relationships: Track record of successful exits to Fortune 500 companies, larger PE firms, and strategic acquirers demonstrates strong market relationships and ability to identify buyer demand.
Investment Thesis Alignment with Buyer Networks
MFG Partners has established relationships with multiple buyer categories:
- Strategic Acquirers: Worthington Enterprises (NYSE: WOR), Jungheinrich AG (European industrials), indicating access to large industrial consolidators
- Secondary PE: Nautic Partners, Merit Capital Partners (co-investment partner on Elgen exit)
- Family Office & Management: Demonstrated ability to create management-led recapitalizations and founder-friendly transactions
Fund Formation & Institutional Capital
MFG Partners has evolved from a deal-by-deal model to formal fund structure:
- Target Fund Size: $300-350 million inaugural commingled fund (announced late 2023)
- LP Base: Likely institutional LPs including family offices, foundations, and PE-focused allocators given the firm's track record and lower-middle market positioning
- Vintage: Fund launch expected 2024-2025 based on prior announcements
Team & Leadership
Founding Partners:
- Jeff Mizrahi (Partner): Co-founder and senior partner. Prior experience at Sand Oak Capital and as an independent sponsor. Deep expertise in industrial consolidation and lower-middle market M&A.
- Jonathan Schilowitz (Partner): Co-founder. Board representation across multiple portfolio companies (A-Z Wire & Cable, CST Utilities, Elgen Manufacturing, Mail Communications Group, Mellott Company) suggests deep operational involvement in value creation.
Investment & Operations Team:
- John Grogan (Principal): Senior investment professional involved in sourcing and due diligence
- Walker Berning (Vice President): Portfolio company support and operational value creation
- Ryan Richardson (VP, Business Development): Investor relations, capital formation, and partnership development
- Aaron Siev: Transactions and operations support
The team's relatively lean structure (approximately 8-12 full-time professionals) enables quick decision-making and hands-on portfolio company engagement typical of successful lower-middle market sponsors.
Not a Fit If...
MFG Partners typically does not pursue:
- Businesses Below $10M TEV: Firm targets scale sufficient for meaningful operational impact and institutional capital deployment
- Highly Leveraged Transactions: MFG prioritizes sustainable leverage and long-term value rather than aggressive financial engineering
- Turnarounds/Distressed Situations: The firm prefers profitable, well-run companies with growth optionality rather than operational distress
- Founder Exit Requirements: MFG's value proposition requires founder/family continuity; exit-focused sellers may conflict with long-term partnership thesis
- Commoditized Industries: The firm focuses on businesses with differentiation and sustainable competitive advantages
Institutional Quality & Governance
MFG Partners operates with institutional governance despite its relatively small size:
- SEC-registered investment adviser (CRD # 330388, SEC# 801-130430)
- Formal fund structure with LP governance and reporting
- Regular board meetings and operational metrics tracking across portfolio companies
- Professional operations and compliance infrastructure
Recent Market Activity
As of Q1 2026, MFG Partners continues to source and invest in lower-middle market industrial platforms. Recent activities include:
- Eighth platform investment announced (specific company varies by news timing)
- Continued exit generation (A-Z Wire & Cable exit in January 2026)
- Active deployment of fund capital across target sectors
- Participation in independent sponsor community (PEI Nexus speaker, Axial Forum participation)
Summary
MFG Partners represents a founder-friendly, operationally-focused private equity platform specializing in family and founder-owned industrial companies. Founded in 2016, the firm has demonstrated consistent ability to source, invest in, and successfully exit lower-middle market platforms through a combination of organic growth initiatives and bolt-on acquisitions. The transition from deal-by-deal model to formal fund structure signals institutional maturation and LP confidence in the team's investment thesis and execution capability. For industrial businesses seeking patient, long-term private equity partners with operational expertise and founder-friendly terms, MFG Partners presents a compelling alternative to larger, more aggressive PE sponsors.