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Behind the Buyouts: HCI's McCormick on Consolidating Fragmented Markets

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Published: June 2nd, 2025
HCI Equity co-founder and chief investment officer Doug McCormick discusses the firm's approach to buy-and-build strategies in large, fragmented and stable markets as well as navigating the challenging M&A environment in 2025.

On the latest episode of Behind the Buyouts, HCI Equity Partners LLC co-founder and chief investment officer Doug McCormick discussed the firm’s investment strategy, its interest in facilities services and the state of dealmaking in 2025.

“Our strategy is to create exceptional return by targeting or driving what we call transformational growth in these very large, fragmented and stable markets,” McCormick said. “We’re getting these very small entry points in these very large markets, and then we’re helping the team grow rapidly through M&A, and then we’re also trying to scale the team at the same time so that they have the organizational capabilities required to run a business of greater complexity and greater scale.”

HCI’s portfolio companies include residential lawn care company LawnPro Partners; commercial roofing services platform Highland Commercial Roofing; auto aftermarket distributor Driven Distribution Group; and foodservice and heating, ventilation and air conditioning equipment services business Tech24.

Founded in 2003, Washington-based HCI typically invests $15 million to $75 million in companies with $3 million to $25 million in Ebitda and $20 million to $200 million in revenue. Its target industries include value-added distribution, business-to-business services and niche and specialty manufacturing.

Check out the podcast with Doug McCormick below:

More podcasts from The Deal are available on iTunesSpotify and on TheDeal.com

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