Private Equity Add-ons: The Middle Market

Why are add-on acquisitions such an important aspect of private equity value creation in the middle market? Mark Jones, a Partner at buyout firm River Associates, says add-ons are an attempt to make a portfolio company “more attractive to the next buyer.” In a Privcap interview, Jones discusses strategies for taking a portfolio company to the next level, trends in the US manufacturing sector, and the benefits of operating a private equity business based in Tennessee – far away from more popular private equity strongholds.