LEHI, Utah--(BUSINESS WIRE)--Maddix Capital, a Utah-based private equity firm that lowers the barrier to entry for limited partners, is proving its disruptive business model with the successful acquisition of its first portfolio company within the fund’s first year – a rare achievement in the private equity space. Founded by serial entrepreneurs, investors, and operators in the heart of Utah’s booming tech hub (Silicon Slopes, Lehi), Maddix Capital is democratizing access to the historically exclusive world of private equity with a bold, operator-centric approach. This early success is due in part to the company’s core differentiator: the belief that the entrepreneur can and should be at the forefront of a fund’s focus in each portfolio company it takes on.
“I’ve been in the seat of the founder who takes on private equity investment, and that experience highlighted some of the key areas where private equity could very much use some reimagining,” said Jesse Silva, Maddix Capital’s Founder and General Partner. “It’s become normal for funds to focus more on the fees, debt, and leveragability of a company than on the spirit, mission, and culture of the business. Those intangibles that made it stand out from the start are often forfeited in favor of maximizing returns at the expense of the entrepreneurs. At Maddix Capital, we are entrepreneurs first and investors second, and we truly care about maintaining the culture, flow, and mission of every company and entrepreneur we add to our portfolio. It is important for us to empower them with more resources than they’d typically have access to without disrupting their leadership, vision, or the work they uniquely know how to do well.”
Launched in January 2022, Maddix Capital closed its first deal – inside of its first year – that September, with several other uniquely strong businesses either in diligence or pipeline stages before the year’s end. The first company to be added to the fund’s growing portfolio was OrderProtection.com, an e-commerce purchase protection platform based out of Los Angeles and Lehi that elevates the customer experience while simultaneously cutting support costs for online merchants across the world. At the same time, Maddix Capital added Maddix Wealth, a wealth management firm for high-net-worth individuals, to offer entrepreneurs (many of whom have never experienced such massive returns) a trusted place to strategize, re-invest, and manage their money. This adds to the extensive menu of operational support services the fund offers to its entrepreneurs, including sales and marketing support, product and engineering support, and finance and accounting expertise.
The success of this initial investment is a testament to the power of Maddix Capital’s disruptive approach. By lowering the minimum investment requirement and maintaining an operator-centric approach, the Maddix Capital team is able to offer greater access to the world of private equity for both investors and entrepreneurs seeking capital. Additionally, the Maddix thesis focuses on achieving liquidity events within 1 – 3 years, a nominal fraction of the typical 5 – 15-year exit timeline of most other private equity firms.
“We’ve never been satisfied with just placing capital and waiting out the industry’s typical return profile timeline,” said Jake Gubler, Director of Maddix Capital. “Instead, we want to be revenue generators, operational support teams, and partners for our portfolio companies who are willing to jump in, get our hands dirty, acquire assets, and rapidly mature each company to its highest potential in the shortest time possible. While we can never make any guarantees in this business, we are not happy with the results unless they are transformative – and we often won’t pull back or give up until we achieve the end goals we outlined from the start.”
As Maddix continues its mission of democratizing access to private equity and accelerating the average timeline to exit, it will continue seeking out new portfolio companies with strong potential for growth and long-term success. To learn more about Maddix Capital and/or set up a meeting, please visit www.maddixcapital.com.
ABOUT MADDIX CAPITAL
Maddix Capital is reimagining private equity by lowering the barrier to entry for limited partners while prioritizing the entrepreneurs, teams, and company culture of the businesses in its growing portfolio. Launched out of the Silicon Slopes tech hub of Lehi, Utah in January 2022, Maddix Capital closed its first deal that September with multiple prospective portfolio companies under contract, a significant growth indicator that many funds never see within their first year. With a core thesis that is operator-driven, entrepreneur-friendly, and now proven to democratize access to the historically exclusive world of private equity, Maddix Capital is setting a new standard for the industry with its transparent, hands-on approach that brings opportunities and positive returns to every party involved. For more information, visit www.maddixcapital.com.