Ryan Sprott and Paul Maxwell are brothers-in-law who first met twenty years ago in their native Kansas City. Now, they are giving up their East Coast private equity jobs in order to launch a new firm back home.
It’s called Great Range Capital, and will focus on Midwestern, lower middle-market companies. Typical equity checks will be between $10 million and $30 million, and the sector strategy is mostly agnostic (save for an aversion to financial services and oil & gas).
“The Midwest is really undercapitalized from a private equity perspective, so we see a lot of opportunity,” says Sprott, who previously was a partner with DLJ Merchant Banking Partners in New York. “We plan to begin with a fundless sponsor model, and we already have a couple of leads for possible anchor investors.”
Sprott will maintain several of his DLJMB board seats, including Deffenbaugh Industries, STR Holdings, Merrill Corp. and Hard Rock Hotels. Maxwell, who spent the past seven years in Boston with Monitor Clipper Partners, is not expected to hold onto any board seats.
If all goes according to plan — obviously a big if — Sprott says that Great Range should do its first deal within the next six months.