Investment Criteria

At Hillstowe Equity Partners, we specialize in identifying and investing in lower middle-market companies that are positioned for long-term success but need the right capital and strategic partnership to reach their full potential. Our investment criteria are designed to ensure that we engage with businesses where we can deliver meaningful value beyond financing.

We typically target companies with the following characteristics:

• Revenue between $10 million and $75 million
  
  

• EBITDA between $2 million and $10 million
  
  

• Demonstrated brand equity or clear potential for category leadership
  
  

• Recurring or highly predictable revenue models (subscription, replenishment, or loyalty-based)
  
  

• Participation in fragmented markets with room for roll-ups or strategic consolidation
  
  

• Founder-owned or under-managed businesses with room for operational sophistication and growth
  
  

Our investment structures are flexible. We pursue both majority recapitalizations and significant minority investments, based on the specific needs of the business and its leadership. Our objective is always to align with the vision of the founder or CEO and provide the right mix of capital and expertise to accelerate execution.

What We Look For

We’re drawn to companies that sit at the intersection of science, wellness, and consumer experience—businesses that offer differentiated value propositions, measurable benefits, and aspirational branding. Ideal candidates often have:

• Scalable unit economics with proven customer retention
  
  

• Disruptive product pipelines or R&D capabilities
  
  

• Strong margin profiles with potential for operational leverage
  
  

• Channel diversity (DTC, retail, specialty, digital)
  
  

• Mission-driven leadership with an appetite for strategic partnership
  
  

Whether it’s a skin microbiome start-up with breakthrough IP or a legacy personal care brand looking to modernize, we partner with teams ready to take bold steps forward.

Our Approach

Hillstowe is not a passive investor. We adopt a value-added, partnership-driven model rooted in transparency, collaboration, and shared success. Our operational support spans multiple disciplines:

• Strategic Positioning & Brand Building
  We help sharpen brand narratives, align product portfolios with consumer needs, and scale marketing efforts across performance, influencer, and experiential channels.
  
  

• M&A Execution & Integration
  For businesses in fragmented industries, we bring experience structuring and integrating add-on acquisitions to accelerate scale and expand capability sets.
  
  

• Operational Efficiency
  We support process optimization in logistics, inventory management, procurement, and tech stack—unlocking efficiencies that fuel profitability and reinvestment.
  
  

• Team Development & Governance
  Our team helps recruit C-level talent, build advisory boards, and install scalable governance frameworks that instill discipline without stifling innovation.