On the latest episode of Behind the Buyouts, Brightstar Capital Partners LP CEO Andrew Weinberg discussed the private equity firm’s tailored approach to investing in family- and founder-owner companies gearing up for succession.

The generational wealth transfer in the U.S. is a $105 trillion opportunity, according to Brightstar research. About 57% of families and founders in this market are unsure if the next generation will join the business, opening the door to private equity firms such as Brightstar as buyers.

“I’ve been essentially investing in this generational wealth transfer for the last 25 years, and all we’ve seen the last five to 10 years is a great acceleration in terms of the market opportunity to back these families, founders and entrepreneurs in our core market in the United States,” Weinberg said.

Founded in 2015 by Weinberg, a former partner at Goldberg Lindsay & Co. LLC, Brightstar invests in business services, consumer services, industrials and government services and technology companies. The firm typically backs businesses with $10 million to $100 million in Ebitda.

Brightstar in November hired Charles R. Yoon, a former managing partner at Bregal Partners LP, to focus on the lower end of that target range and lead its lower middle market strategy.

Brightstar’s investments include Dublin, Ohio-based commercial auto aftermarket services company W.W. Williams Co. in January; Hendersonville, Tenn.-based Best Choice Roofing in August; and Walnut Creek, Calif.-based fleet maintenance company Amerit Fleet Solutions Inc. in December 2020. New Mountain Capital LLC made a majority investment in Amerit in January, with Brightstar retaining a minority stake.

Check out the podcast with Andrew Weinberg below:

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