#USA #New York #Investment #HR Services #LO3 Capital

LO3 Capital's Recent Investment in HR and Insurance Services

On September 2, 2025, LO3 Capital, a private investment firm dedicated to aiding lower-middle market companies, revealed a substantial investment directed toward a U.S.-based HR and insurance services provider. This strategic move involved both senior debt and preferred equity, aiming to support the company's ongoing recapitalization efforts, particularly within the professional employer organization (PEO) and workers' compensation insurance sectors.

The investment is spearheaded by two seasoned operators with proven experience in the HR and insurance industries. Their involvement is anticipated to modernize the firm, offering diverse solutions, including payroll, employee benefits, and compliance services tailored for small to mid-sized enterprises across the nation. This partnership represents a pivotal step in enhancing the operational capabilities of the company while transitioning leadership efficiently.

LO3 Capital’s investment does more than facilitate ownership changes; it also lays the groundwork for critical technology upgrades and growth initiatives. These enhancements are intended to broaden the firm’s national reach and improve the automation of services, ensuring that clients receive timely and efficient support. Glenn Harrison, the Managing Partner and Co-Founder of LO3 Capital, emphasized the business’s potential for accelerated growth. With a robust leadership team, a clear technology roadmap, and favorable market conditions, they believe the company is poised to achieve operational excellence and significant market presence.

With this transaction, LO3 Capital has reached its twelfth investment since the fund's inception in September 2022. This notable milestone underscores the firm’s commitment to supporting businesses that display strong growth trajectory potential and innovative strategies.

LO3 Capital distinguishes itself in the crowded private investment landscape as a minority-owned firm. Operating primarily from its offices in Nashville, New York, and Dallas, the company targets businesses that report an EBITDA exceeding $3 million across various sectors. Their approach involves collaborating closely with management teams, business owners, and private equity firms to fund organic growth, facilitate acquisitions, manage recapitalizations, and ease ownership transitions.

Founded as a division of Live Oak Growth Capital, LO3 Capital continues to manage funds previously established by Live Oak, focusing on creating sustainable growth avenues for its partners. More information regarding their investment strategies and further details can be accessed via their website at lo3capital.com.

This latest investment serves as a testament to LO3 Capital's strategic foresight in a rapidly evolving business landscape, particularly in sectors where technology and efficient management practices are vital for success. It also highlights the value of private equity in transforming lower-middle market companies to better meet modern demands and serve their client bases effectively.

In conclusion, LO3 Capital’s strategic investment signifies a promising future for the U.S.-based HR and insurance services firm, enabling it to expand and enhance its offerings, ultimately contributing to a more robust economy and fulfilling the needs of small to mid-sized enterprises across the nation.