Signal Rock Capital: Launching to Transform Lower Middle-Market Investments
On July 21, 2025, Signal Rock Capital, a private investment firm, commenced operations with a clear ambition to support and invest in lower middle-market companies, particularly those that are often overlooked in the industrial, consumer, and healthcare service sectors. Co-founded by Sam Hafermann and Grant Husted, the firm positions itself as a partner to gritty, founder-led businesses, aiming to foster genuine growth and development.
Founders' Vision
Hafermann and Husted are not new to the investment landscape; they previously worked together at L2 Capital, where they honed their skills by participating in over 30 transactions across various sectors, including industrial and niche manufacturing. This background has equipped them with a robust track record, and they are leveraging their experience in establishing Signal Rock Capital.
The founders have articulated the driving philosophy behind Signal Rock’s approach: "We started Signal Rock to be the kind of investor we'd want if we were in the owner's shoes.” This focus signifies a shift away from traditional investment methods characterized by extensive financial modeling and short-term flips. Instead, they aim for authentic partnerships rooted in trust and respect for the dedication required to build meaningful businesses.
Investment Focus and Strategy
Signal Rock Capital has a specific criteria for investment, targeting lower middle-market companies that generate between $2 million and $30 million in annual revenue and possess EBITDA in the $1 million to $3 million range. The firm emphasizes control investments, indicating a commitment to actively engage in managing the companies in which it invests.
The investment focus extends across four core sectors:
1.
B2B Industrial – This includes distribution, manufacturing, fire and life safety, pest control, commercial towing, and landscaping.
2.
Infrastructure Services – Services such as OSHA consulting, paving, striping, backflow prevention, traffic control, loading dock maintenance, and tree trimming fall under this vertical.
3.
Consumer Services – The firm shows interest in vacation rental maintenance, health and wellness, and broad consumer-facing services.
4.
Healthcare Services – Targeting outsourced MRI, scanning, and diagnostic testing firms highlights Signal Rock's commitment to essential services.
Assurance in Uncertain Times
The firm’s name, Signal Rock, is derived from lighthouses—symbols of guidance in perilous circumstances. The founders draw a parallel between the stability of a lighthouse and their aspiration to provide dependable, grounded support to their partners in turbulent economic conditions.
Current Opportunities and Future Aspirations
Signal Rock is actively seeking to engage with owner-operators looking for avenues to stimulate growth, manage succession, or conduct thoughtful recaps. With a strong emphasis on operational enhancement and flexible deal structuring, the firm not only seeks investments but aims to build enduring business relationships characterized by long-term alignment of interests.
The landscape for lower middle-market investments is promising, especially for companies in essential service sectors that maintain demand even during economic downturns. Signal Rock Capital aims to be a pivotal player in this space, providing the necessary capital and operational expertise to help companies thrive.
To explore more about Signal Rock's vision and investment strategy, visit their official website at
www.signalrockcap.com.
In conclusion, the firm’s dedication to fostering trustful partnerships with founder-led businesses is set to not only drive profitability but also establish a pivotal foundation for sustainable community and economic development. Through Signal Rock, small but mighty companies can look forward to a more promising future.