NewCap Partners Research
Advisory Approach
NewCap Partners is a Los Angeles-based investment banking firm founded in 1987 that specializes in lower middle market M&A advisory services. The firm operates with a clear thesis: entrepreneurs deserve investment bankers who treat each transaction as potentially the most important deal of the client's life, not just another transaction to close. This client-centric philosophy has driven their approach for over three decades of serving middle-market companies.
The firm's positioning is distinctive in several ways. First, they emphasize relationship-building over transactional deal-making—they invest time in getting to know clients before any engagement begins. Second, they bring large-market cap experience to middle-market companies, with team members who have held senior roles at Fortune 500 corporations and major Wall Street firms. Third, they frame themselves as "an entrepreneurial investment bank" that believes in people who create their own future—a natural fit for founder-owned businesses seeking exit opportunities.
NewCap's sweet spot is companies with $10 million to $100 million in annual revenue, translating to transaction values typically in the $20 million to $150 million range. They work extensively with family-owned businesses, founder-led companies, and venture capital-backed businesses across multiple industries. Their team has completed 30+ transactions since 2016, with particularly deep expertise in advanced manufacturing, aerospace and defense, healthcare, and technology-enabled services.
Sector Focus
NewCap Partners has developed genuine depth in several industry verticals, with advanced manufacturing and additive manufacturing (3D printing) standing out as a core competency. This is not merely marketing language—their deal history and team credentials demonstrate real expertise. They've advised on multiple landmark transactions in the additive manufacturing space, including the sale of Morf3D to Nikon, Hybrid Manufacturing Technologies' Series A from Nikon, Optisys' funding from Nikon, and the 2025 sale of Fabrisonic to United Performance Metals. Team member Dayton Horvath serves as Director of Emerging Technology at AMT—The Association For Manufacturing Technology and co-organizes the IMTS Investor Forum, giving the firm exceptional visibility into manufacturing technology trends.
In aerospace and defense, NewCap has advised Nuvotronics on a $15 million strategic investment and has completed multiple transactions involving defense electronics and aerospace components manufacturers. The firm understands the unique dynamics of selling to strategic buyers in highly regulated industries.
Healthcare services and medical products represent another area of concentration. Transactions include Advanced Medical Management's sale to Seoul Medical Group, Oxford Performance Materials' financings from Hexcel and JSR Corporation, Prospective Payment Specialists' acquisition by Bolder Healthcare Solutions, and Teledyne's acquisition of Hanson Research. These deals span healthcare services, medical devices, and specialty materials.
The firm also maintains active practices in business services, logistics, and technology. Representative deals include SeatAdvisor to Patron Technology, Parcel Pending to Neopost, JIT Transportation and Comprehensive Traffic Systems to River Horse Logistics, Altivon to ConvergeOne, and Managed Mobile to Epika Fleet Systems. This B2B services expertise complements their manufacturing and healthcare focus.
Process & Fee Structure
NewCap Partners runs institutional-quality sell-side processes tailored to lower middle market companies. They emphasize exhaustive buyer outreach, targeting both strategic buyers and financial sponsors based on the client's specific goals and circumstances. The firm has deep relationships across 2,000+ potential acquirers built over 30+ years of transaction work.
Their process includes comprehensive preparation: helping clients identify issues that will surface during due diligence, creating innovative solutions to potential deal roadblocks, and structuring transactions to achieve the client's objectives. They're also adept at "parachuting in" when an entrepreneur receives an unsolicited offer, helping them run a competitive process rather than accepting a suboptimal bid.
Regarding fees, NewCap structures compensation to align their interests with clients'. Like most lower middle market investment banks, they charge an up-front monthly retainer (credited against success fees) plus a success-based percentage of transaction value paid upon closing. While specific figures aren't published publicly, their retainer range is consistent with industry standards for this segment ($10K-$25K/month) and success fees typically follow a modified Lehman or similar percentage structure. The firm requires exclusivity for sell-side engagements.
Buyer Network
NewCap Partners has closed transactions with a diverse range of buyer types, demonstrating genuine buy-side network strength rather than theoretical relationships. Strategic buyers include Nikon (multiple transactions), United Performance Metals, Evonik, Neopost, Teledyne, ConvergeOne, Jabil Circuit, Griplock Systems, Epika Fleet Services, Patron Technology, River Horse Logistics, ServiceMaster, and Electronic Warfare Associates.
On the private equity side, they've worked with H.I.G. Capital, Eastport Holdings, Trivest Partners (through portfolio company Epika), L2 Capital Partners (through portfolio company ERA Industries), and other financial sponsors. Corporate venture and strategic investors include Boeing HorizonX, Airbus Ventures, and Hexcel Corporation.
This mix of strategic and financial buyers, combined with NewCap's ability to run broad outreach processes, positions them well to maximize transaction value for clients. Their manufacturing and aerospace expertise gives them particular credibility with strategic buyers in those sectors, while their 30-year track record provides access to institutional private equity firms.
Competitive Positioning
NewCap Partners differentiates through three key attributes:
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Genuine Manufacturing Expertise: Most boutique investment banks claim manufacturing expertise, but NewCap's deal history and team credentials back it up. They've closed landmark additive manufacturing transactions and team members hold leadership roles in manufacturing technology organizations. This isn't a marketing pitch—it's demonstrated capability.
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Large-Market Experience, Middle-Market Focus: Several team members, including Mike Schwerdtfeger (formerly of Kinder Morgan and ARCO) and Valerio Giannini (formerly in the White House and at Kidder Peabody), bring Fortune 500 and Wall Street experience to middle-market transactions. This creates value for entrepreneurs who haven't previously navigated complex deal structures.
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Relationship-Driven Approach: The firm emphasizes long-term relationship building over transactional deal-making. They've worked with multiple clients on successive transactions (e.g., multiple financings for Oxford Performance Materials, multiple additive manufacturing deals), suggesting genuine client satisfaction rather than one-off engagements.
Not a Fit If
Based on their positioning and deal history, NewCap Partners is not ideal for:
- Companies below $10 million in annual revenue (they have a minimum engagement size)
- Businesses seeking purely tactical advice without intent to transact
- Founders who want to run a limited buyer process—NewCap's value is in exhaustive outreach
- Industries outside their sector focus areas (they're not generalists)
- International transactions requiring cross-border expertise they don't possess
Team
NewCap Partners has seven partners across Los Angeles, Orange County, Silicon Valley, and Washington D.C.:
Danny Piper – Managing Partner, Los Angeles. A principal focused on M&A transactions, particularly in advanced manufacturing and technology sectors. Regular speaker at additive manufacturing conferences and host of the "Printing Money" podcast on 3D printing industry trends.
Thomas W. Turney – Partner/CEO/Founder, Los Angeles. Founded NewCap Partners in 1987 and has led the firm for over 35 years. Previously held senior investment banking roles. Serves as CFO and AML Compliance Officer.
Michael Schwerdtfeger – Partner, Los Angeles. 30+ years of experience including 20 years in Fortune 500 marketplace (Kinder Morgan, ARCO). Former Managing Director at Chapman Associates. Has completed over $2 billion in transactions across manufacturing, technology, and services sectors. Holds chemical engineering, law, and MBA degrees from USC and UCLA.
Valerio L. Giannini – Partner, Orange County. Joined NewCap in 1994 after leadership roles at Ventana International, Geneva Companies (Chemical Bank subsidiary), and Cumberland Investment Group. Previously served in the White House as Director of White House Operations and Deputy Assistant Secretary of Commerce. Has served as CEO or COO of six public companies and completed 40+ transactions. Princeton graduate.
Kenneth A. Epstein – Partner, Silicon Valley. Provides advisory services to entrepreneurs and business owners, with particular expertise in technology and cross-border transactions. Regular speaker on international partnerships and licensing.
Brett Potts – Partner, Orange County. Advises across software, composite materials, aerospace and defense, manufacturing, and business services. Formerly founded Coast Practical, a growth and exit consultancy. Prior experience at Cintas Corporation (NASDAQ: CTAS) as a General Manager. Began career as a U.S. Navy Surface Warfare Officer.
Dayton Horvath – Partner, Washington D.C. Specializes in advanced manufacturing, materials, and related software technologies. Also serves as Director of Emerging Technology at AMT—The Association For Manufacturing Technology. Previously led materials design and manufacturing coverage at Lux Research. M.S. in Chemistry from UC Santa Barbara, B.S. from University of Connecticut. Extensive media coverage and speaking engagements on additive manufacturing trends.
Geographic Coverage
Primary presence in California with team members in Los Angeles, Orange County, and Silicon Valley. Additional presence in Washington D.C. through Dayton Horvath. The firm serves clients nationally but has particular strength in Western U.S. markets, especially California-based advanced manufacturing and technology companies.