Private Equity Value Creation Podcast Ep. 74: John Stewart, MiddleGround Capital | Optimizing Operations in Industrial Manufacturing Portcos
May 22, 2025
Shiv interviews John Stewart, Founder and Managing Partner at MiddleGround Capital, who brings two decades of expertise from Toyota to private equity in industrial B2B manufacturing. They delve into the nuances of creating enterprise value through strategic partnerships and operational efficiency. John shares insights on optimizing procurement strategies for steel, navigating working capital challenges, and the transformative power of effective working capital management. This discussion reveals how tailored approaches can yield quick returns in today’s manufacturing landscape.
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Operators Turned Investors
- John Stewart and Scott Duncan leverage decades of operational experience from Toyota to optimize manufacturing operations.
- Their hands-on factory knowledge drives unique value creation in industrial B2B manufacturing investments.
Tailored Value Creation Plans
- True value creation in manufacturing firms hinges on optimizing every P&L and balance sheet item.
- Customized value creation plans focus on working capital, supplier relationships, and operational improvements.
Leverage Supplier Consolidation
- Consolidate suppliers strategically to gain pricing and payment terms advantages.
- Use portfolio scale to negotiate better deals that improve cash flow and margins.
