Small-cap buyouts · Updated 2026
Micro Private Equity Firms: Who Buys Businesses Under $10M EBITDA
Micro private equity firms acquire businesses with roughly $500,000–$5,000,000 of EBITDA, usually at 3x–6x EBITDA, and often hold them indefinitely rather than exiting on a 5-year fund clock. The category splits into three structures: permanent-capital holdcos, small committed funds, and independent sponsors who raise equity deal by deal.
By the Coyote Wealth Editorial Team — researchers and writers with experience across leading Wall Street financial institutions. Updated August 8, 2026.
Coyote Wealth data point
4.3x
Median entry EBITDA multiple in micro PE, businesses at $1M–$3M EBITDA (Coyote Wealth 2026 estimate)
Based on Coyote Wealth's review of 60 disclosed and practitioner-reported micro-cap acquisitions between mid-2024 and mid-2026. Multiples cluster at 3.2x–4.0x for owner-dependent service businesses and 5.5x–7.0x for recurring-revenue software and route-based businesses.
10 active micro private equity buyers
Permanent Equity
Focus: Long-hold buyouts of founder-owned businesses
HQ: Columbia, MO
- Hold period:
- Up to 30 years
Explicitly long-duration capital with no leverage-driven exit clock. Publishes its investment terms and reasoning openly, which is unusual in this segment and useful for founders comparing offers.
Chenmark
Focus: Permanent holdco, essential services
HQ: Portland, ME
- Hold period:
- Indefinite
Buys unglamorous, cash-generative service businesses and operates them under a shared operating group. Prioritizes continuity of employees and management.
Tiny
Focus: Internet and software businesses
HQ: Victoria, BC
- Hold period:
- Indefinite
Publicly traded holding company acquiring profitable internet businesses with a fast, low-friction diligence process.
Enduring Ventures
Focus: Diversified permanent holdco
HQ: Phoenix, AZ
- Hold period:
- Indefinite
Acquires small businesses across software, services, and specialty niches with a decentralized operating model.
SureSwift Capital
Focus: Bootstrapped SaaS
HQ: Bozeman, MT
- Typical size:
- $1M–$10M EV
Specialist acquirer of small bootstrapped SaaS products with a repeatable post-close operating playbook.
Teamshares
Focus: Employee-ownership transitions
HQ: New York, NY
- Model:
- Employee ownership
Buys small businesses from retiring owners and transitions equity to employees over time. Distinct exit path from conventional micro PE.
KarpReilly
Focus: Consumer and restaurant growth capital
HQ: Greenwich, CT
- Typical size:
- $10M–$100M EV
Consumer-focused at the top edge of micro PE, most relevant for emerging restaurant and retail concepts.
Alpine Investors (Alpine Software Group)
Focus: People-first software and services buyouts
HQ: San Francisco, CA
- Typical size:
- $10M+ EV
Larger than true micro PE, but its CEO-in-training model regularly reaches small platform acquisitions that micro-cap sellers encounter.
Trilogy Search Partners
Focus: Searcher-led acquisitions
HQ: Boston, MA
- Model:
- Search-backed
Backs individual operators buying a single business — effectively micro PE delivered through a searcher rather than a fund.
Sunrise Capital
Focus: Storage and niche real-asset businesses
HQ: Wichita, KS
- Typical size:
- $5M–$50M EV
Specialist buyer in asset-heavy micro-cap niches where operating leverage comes from consolidation, not multiple expansion.
The micro PE universe includes several hundred holdcos and independent sponsors, most of which do not publish deal activity. Inclusion here is editorial and is not an endorsement or a solicitation.
Three structures, three very different outcomes for a seller
Permanent-capital holdco
Buys with balance-sheet or evergreen capital and holds indefinitely. Lower headline price is common; continuity for employees is higher and there is no forced re-sale in year five.
Small committed fund
A $25M–$150M fund with a 10-year life. Priced competitively but the business will be sold again, typically within 3–7 years, because the fund has an obligation to return capital.
Independent sponsor
Raises equity deal by deal after signing an LOI. Can pay well, but certainty of close is the key diligence question — ask for their last three closed deals and the capital partners behind them.
What micro PE firms actually pay
Entry multiples in this band are driven by owner dependence and revenue durability more than by sector. A $2M EBITDA HVAC business with a working general manager and 40% recurring maintenance revenue transacts near 5x. The same EBITDA generated by an owner who is the top salesperson transacts near 3x, and often with half the price in an earnout.
Structure matters as much as the multiple. A 4.5x deal that is 70% cash at close with a 30% seller note at 8% is frequently better for the seller than a 5.5x deal that is 50% cash, 30% earnout, and 20% rollover into an entity with no defined liquidity path.
Five questions founders should ask a micro PE buyer
Where does the equity come from, and is it committed today?
Committed fund, holdco balance sheet, or deal-by-deal syndication. This single answer predicts certainty of close better than anything else.
How many businesses have you closed in the last 24 months?
Ask for names and for permission to call one seller who did not have a perfect outcome.
What happens to my team in the first 12 months?
Get specifics on management retention, the operating cadence, and whether a corporate services layer will be imposed.
What debt goes on the business at close?
Leverage above 3.0x EBITDA in a cyclical micro-cap business is the main driver of post-close distress.
What is your intended hold period?
Indefinite, 5 years, or opportunistic. If the answer is vague, assume the business will be re-sold.
Methodology and limitations
- Buyers are included based on disclosed or practitioner-verified acquisition activity in the $500K–$5M EBITDA range during the trailing 24 months.
- Multiple ranges come from Coyote Wealth's review of 60 micro-cap transactions reported by sellers, advisers, and acquirers between mid-2024 and mid-2026.
- Firms are grouped by capital structure because that variable, more than sector, determines the seller's post-close experience.
- Limitations: micro-cap transaction terms are almost never publicly disclosed, so all pricing figures are estimates with wide dispersion.
No firm paid for inclusion or placement. Coyote Wealth does not manage money, administer funds, or sell financial products. Figures are editorial estimates drawn from public disclosures and practitioner interviews, not audited data. Corrections: contact the editorial desk.
Frequently asked questions
What is micro private equity?
Micro private equity is the acquisition of businesses with roughly $500,000–$5,000,000 of EBITDA, typically at 3x–6x EBITDA. Buyers include permanent-capital holding companies, small committed funds under $150M, and independent sponsors who raise equity for each deal.
What multiple do micro PE firms pay?
Coyote Wealth estimates a median entry multiple of 4.3x EBITDA for businesses at $1M–$3M of EBITDA in 2026. Owner-dependent service businesses transact closer to 3.2x–4.0x, while recurring-revenue software and route-based businesses reach 5.5x–7.0x.
How is micro PE different from traditional private equity?
Traditional private equity funds buy companies with $10M+ of EBITDA, use committed institutional capital, and exit within 3–7 years. Micro PE buys much smaller businesses, frequently uses permanent or deal-by-deal capital, applies less leverage, and often intends to hold indefinitely.
Do micro PE firms use SBA loans?
Independent sponsors and searcher-backed buyers frequently use SBA 7(a) loans up to the $5,000,000 program cap for acquisitions. Established holdcos and committed funds more often use conventional senior debt or all-equity purchases because SBA personal-guarantee requirements are impractical at fund scale.
Is selling to a micro PE firm better than selling to a strategic buyer?
Strategic buyers often pay more because of cost synergies, but they also more frequently eliminate roles and absorb the brand. Micro PE buyers typically pay a lower headline multiple with a higher probability that the team, name, and location continue. The right answer depends on whether price or continuity is the seller's priority.
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