In this edition of The Deal’s Behind the Buyouts podcast, Court Square Capital Partners LP managing partner Jeffrey Vogel takes us through the firm’s middle-market playbook — in which founders and management-owned companies play a large role.
Court Square was once part of Citigroup Inc. (C), and its roots go back to the early days of leveraged buyouts. Vogel discussed the evolution of the portfolio, from semiconductors and telecom infrastructure to IT services and software.
“We’ve found if we’re looking at a deal and it’s us against an infrastructure fund, one of us is in the wrong spot,” Vogel said of the need to change with the market.
He explained why the firm’s investment in data center technology and services company Ahead Inc. was the “quintessential case study of a Court Square deal” and helped the firm make a subsequent deal with 3D printing company GoEngineer Inc.
Amid inflation, stock market volatility, geopolitical instability and questions about interest rates, the 18-year Court Square veteran said he takes assurance form the enduring growth in cloud, bandwidth, devices and security. While the tech talent squeeze has been a challenge to Court Square portfolio companies, Vogel said, it also presents an investment opportunity.
Here’s the podcast with Jeffrey Vogel: