Investing for the Long-Term
In the heart of the Pacific Northwest’s booming business economy, one private investment firm stands out for its commitment to protecting and scaling businesses over the long term. Traction Capital Partners, based in Bellevue, has been strengthening the community through its strategic investments in companies that it plans to preserve and grow over the course of decades to come.
Traction Capital Partners, led by Dale Payne, Brian Haynes, Justin Turner, and Peter Bell, is deliberate in the investments it makes. The team prefers to maintain a strong relationship with the original owner of a business, reserving a portion of the company’s equity for the founder and key employees to allow them to contribute and benefit from the continued growth and long-term success of the business.
With six businesses in its current portfolio, Traction Capital Partners has been making investments in the Northwest since 2018. An industry-agnostic investor, the team will look at investment opportunities in companies with $2 million or more in EBITDA who are headquartered in Colorado and West. Purchases are made with a combination of debt from a bank and equity from high-net-worth investors and family offices. Most of Traction’s investors made their money owning and running businesses similar to the ones Traction looks to acquire. Once a company is brought into its fold, Traction is committed to contributing the resources, leadership, and guidance necessary to help a brand scale and thrive.
One notable success story is their investment in SeaWestern, Inc., a Kirkland-based distribution business that provides life safety equipment to fire departments across the western U.S. Since being acquired by Traction the company has grown from $15 million in sales to almost $40 million in sales, tripled its employee count and expanded from two states to eleven.
With the belief that the entrepreneurial community in the Pacific Northwest is worth advancing, Traction Capital Partners values its relationships with key partners who help their portfolio companies thrive. Specifically, Traction’s partnership with Turning Point serves to ensure strong financial leadership for their businesses through CFO services and the recruitment of executive roles.
As Justin Turner, a partner at Traction puts it, “Our relationship with Turning Point has allowed us to find better candidates for full-time roles within our portfolio companies who can help grow and improve the businesses we partner with. Additionally, the consulting arm of Turning Point helps us expand our capacity to serve critical finance functions within the new investments that we make.”
With a focus on long-term growth, Traction Capital Partners blurs the lines between a private equity fund and a permanent capital vehicle. Through their pooled capital, Traction positions middle market businesses for continued success. We can’t help but wonder, who will be next to catch their eye?
