The Private Equity Podcast, by Raw Selection
Micro Cap Investing Pitfalls & Opportunities with Ben Claremon
Apr 8, 2025
Ben Claremon, a Partner at Devonshire Partners specializing in micro and nano-cap investments, shares his journey from hedge funds to private equity. He highlights the overlooked potential of small public companies and argues that they often offer better governance than their private counterparts. Claremon discusses the crowded lower middle market, the importance of building long-term relationships, and effective risk mitigation strategies in microcap investing. His insights push investors to reconsider opportunities in this segment.
31:27
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Quick takeaways
- Ben Claremon highlights that private equity firms often overlook public microcap companies, presenting a missed opportunity for investment despite their undervaluation.
- The podcast discusses how building long-term relationships with founder-led businesses in the microcap space can provide a competitive advantage in an overcrowded market.
Deep dives
Ben Claremont's Background and Investment Philosophy
Ben Claremont introduces himself as a partner at Devonshire Partners, a private equity firm focusing on lower to middle market investments in the micro and nano cap space. Starting his career in commercial real estate and transitioning through a hedge fund, he reflects on the lessons learned during significant market events like the financial crisis and COVID-19. Claremont emphasizes a unique perspective shaped by his public equity experiences, which informs his approach to private equity. At Devonshire, he targets businesses with EBITDA between two to ten million, specifically those led by founders or families seeking to maintain their company's culture amid institutional capital investments.
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