Borgman Capital, based in Milwaukee, has expanded to the Twin Cities.
The private equity firm announced its arrival in the state on Tuesday.
'Borgman Capital has a commitment to the lower mid-market, and we think the Upper Midwest – specifically Minnesota, Dakotas, and Iowa – continues to be underserved. In a press release, Sequoya Borgman said that the Twin Cities are an ideal place to settle down.
Borgman opened its Twin Cities branch with Bex Axelrod, a long-time Twin Cities financial advisor.
Axelrod is a professional with more than 20 years' experience. Before joining Borgman Capital he served as a managing Director and Group Head of Investment Banking at CLA. In 2014, he launched CLA's M&A consulting capabilities to guide and support owners of privately held businesses through ownership transitions. According to the release, he has also worked at Lazard Capital Markets and RBC Capital Markets.
The company, founded in Milwaukee, in 2017, has a portfolio of seven companies in a variety of industries including manufacturing, telecommunications and food. The firm invests in proven businesses that are part of sustainable industries with annual revenues between $10 million and $100 million, as well as EBITDAs between $2 million and $15 million.
Axelrod, who is currently the only employee in the Twin Cities region, said that he expected the team to expand.
We're trying to establish a market presence that is appropriate and that can support it. Axelrod stated that he couldn't say how many people were involved, but there are more than me.
Axelrod described the move to Minnesota as a natural progression of the firm.
He said that there are still many opportunities for lower middle-market businesses to find groups who can help them take their business to the next level.