Today’s guests are Thomas Ince and Logan Lowery, Managing Partners of LP First Capital, a top-rated independent sponsor that has closed 70 deals in just six years. Ince and Lowery share the origin of the firm’s name and dive into how LP First approaches investor alignment, capital structuring, and platform building. They discuss the nuances of working with a diverse mix of LPs, co-GP partnerships with private equity firms, and the firm’s emphasis on speed, sourcing discipline, and founder alignment. The conversation closes with reflections on hold vs. exit decisions, the firm's evolution, and what lies ahead.

Discussion Points:

The story behind the name “LP First” and its layered meaning
Structuring investor alignment through incentive design
Evolving LP mix and the importance of thoughtful capital composition
Why LP First often starts transactions all-equity and leverages up later
Getting comfortable with private equity funds as LPs
Co-GP partnerships with private equity firms and how LP First approaches governance
Criteria for selecting GP partners and building trust
LP First’s value prop: speed, responsiveness, and sourcing systems
Building and executing within a focused buy box
Prioritizing founder energy and cultural fit in platform investments
Thoughts on hold duration, liquidity timing, and compounding value
Scaling thoughtfully while building long-term firm credibility

Masters in Small Business M&A (sign up for podcast drops here) is produced by its host, Peter Lehrman, and the team at Axial (www.axial.com). Axial makes it easy for small business owners to confidentially explore growth capital and exit transactions with top-ranked lower middle market M&A advisors and professional capital partners. In every episode, we explore the dynamic world of small business M&A, interviewing a mix of proven and emerging owners, operators, acquirers, and M&A advisors whose strategies and methods are being put to the test.

If you’d like to go deeper, head to Axial.com, where we make available the Axial member directories, downloadable tools for dealmakers, the Axial quarterly lower middle market investment banking league table rankings, the SMB M&A pipeline report, and other useful information. If you’re a business owner, professional acquirer, or M&A advisor, you can start using Axial for free at Axial.com.

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