O2 Investment Partners Research
Advisory Approach
O2 Investment Partners is a specialized private equity firm that operates as both a direct investor and a strategic partner to management teams in the lower middle market. The firm's thesis centers on acquiring majority interests in family- or founder-owned businesses that have demonstrated strong earnings growth potential and possess a clear path to creating shareholder value. O2 distinguishes itself by operating as an active partner rather than a typical financial sponsor, aligning its interests closely with management teams to drive organic and M&A-fueled growth.
Sector Focus
O2 Investment Partners concentrates on three primary verticals: B2B services, technology, and select niche industrial companies. Within these broad categories, they have developed deep expertise across several specialized sectors:
- B2B services companies that provide specialized operational and cost reduction solutions
- Healthcare services, particularly focused on medical imaging and diagnostic equipment
- Technology companies delivering managed IT services, cybersecurity, and cloud solutions
- Niche industrial services including aerospace, cleanroom systems, and specialized manufacturing
The firm has a particular preference for businesses with recurring revenue streams, defensible market positions, and entrepreneurial management teams focused on strategic growth initiatives.
Deal Track Record
O2 Investment Partners has built a diverse portfolio through strategic acquisitions across multiple industries. The firm has completed at least 15+ documented transactions since 2020:
- Xobee Networks (November 2025): Acquired Exceedio Inc., a managed IT and technology solutions provider specializing in cybersecurity and cloud hosting. O2 acted as the controlling PE partner to Xobee.
- Victory Tire & Auto (August 2025): Acquired Jack's Auto Service through subsidiary Victory Tire & Auto.
- SIB Fixed Cost Reduction (June 2020): Acquired this provider of cost savings review and recovery services for telecom, utilities, and waste management expense categories.
- First Class Air Support and Cargo Repair (January 2020): Acquired these aerospace aftermarket businesses serving the global cargo aviation industry, with operations in Kentucky, Florida, California, Turkey, and the UK.
- Modular Devices, Inc. (January 2022): Acquired this leading provider of cleanroom systems and medical imaging equipment, demonstrating continued investment in healthcare technology.
The firm has also made numerous add-on acquisitions for portfolio companies, including investments in Flow Cleanrooms & Supply, Interim Diagnostic Imaging, Transcend Imaging, and Cardiac Services Mobile through their Modular Devices platform.
Process & Fee Structure
O2 Investment Partners maintains a hands-on investment approach that blends institutional rigor with entrepreneurial flexibility. The firm typically invests with its own capital alongside core investment partners, avoiding the holding company structure. Their process emphasizes:
- Strategic partnership with management teams rather than financial sponsor model
- Decentralized decision-making empowering management execution
- Comprehensive support across strategic planning, financial modeling, M&A analysis, and operational improvements
- Flexible transaction structuring to accommodate seller, management, and buyer needs
Fee terms are not publicly disclosed, but the firm's investment style suggests a traditional equity co-investment model without standard success fees typical of advisory services.
Buyer Network
O2 Investment Partners has established relationships across both financial and strategic buyer categories. Their portfolio exits and add-on acquisitions demonstrate connections with:
- Private Equity: Strategic partnerships for add-on acquisitions and eventual exits
- Corporate Strategic Buyers: Multiple integrations of portfolio companies with larger industrial and technology firms
- Specialized Industry Operators: Deep relationships within aerospace, healthcare technology, and specialized services sectors
The firm has a strong network among middle-market PE firms and strategic acquirers, particularly in their focus industries.
Competitive Positioning
O2 Investment Partners differentiates itself from other lower middle market private equity firms through:
- Midwest expertise with national reach, combining regional understanding with broader market access
- Active partnership model where principals serve as operational partners rather than passive financial sponsors
- Cross-industry knowledge allowing them to spot opportunities across B2B services, technology, and industrial sectors
- Hands-on approach providing strategic, operational, and financial resources to portfolio companies
- Relationship-driven culture prioritizing long-term partnerships with management teams
Not a Fit If
O2 Investment Partners typically declines opportunities involving:
- Businesses below $5M EBITDA (except add-on acquisitions)
- Pure asset sales without ongoing operations
- Companies lacking management succession plans or entrepreneurial teams
- Businesses without clear paths to value creation beyond basic operational improvements
- Industries outside their core focus areas of B2B services, technology, or specialized industrial sectors
Team
The firm maintains a team of approximately 18 professionals including 7 Partners, 6 Vice Presidents, and 5 Associates, supported by senior advisors. Key team members include:
- Luke K. Plumpton: Managing Partner
- Patrick R. Corden: Partner, active dealmaker in recent acquisitions
- Michael G. Cotant: Partner
- Andrew Faubel: Partner
- Jimmy Frye: Partner
- Jay Hansen: Partner
- Derek Wardlaw: Partner, Head of Business Development
- Charles Miller: Principal
The team has significant collective experience, with the firm noting more than 75 years of cumulative M&A experience among its principals.
Geographic Coverage
O2 Investment Partners is headquartered in Bloomfield Hills, Michigan, and maintains a Midwest focus with investments primarily across the United States and Canada. The firm has demonstrated regional strength in the Midwest but actively seeks opportunities nationwide, particularly in markets with strong entrepreneurial ecosystems and growing middle-market businesses.