We build enduring businesses in full color
Chroma Equity partners with founders and management teams to scale resilient companies.
What we aim for
Businesses with a real moat and room to grow
Solid models
Cash-generating businesses with sound models and established, often founder-built teams; working products in growing or stable markets, ideally capital-light, that are simply too small or specialized to be on the institutional radar.
Durable advantages
Sticky customers, natural pricing power, low-cost producer status, or a trusted brand; structural advantages that are hard to replicate. A leader within its niche with clear room to grow into its full potential.
Consistent fundamentals
Meaningful value comes from getting the fundamentals right rather than heroic assumptions or perfect execution. Most of the opportunity Chroma unlocks is operational: doing the basics consistently well so the core model can shine.
The right incentives
Sensible entry prices with little to no leverage, where strengthening the basics builds lasting value - developing the company to its full potential, and building foundational mechanisms to let it thrive for the long term.
Where we focus
Where we spend most of our time
We are willing to look at most B2B businesses. The sectors below are where we spend the most time and carry the most conviction.
Vertical software
Vertical SaaS with durable recurring revenue and sticky customers.
Home services
Plumbing, electrical, HVAC and related trades with steady demand.
Manufacturing
Specialized, niche makers with pricing power, repeat business, and technical depth.
Aerospace
Precision components and services supporting long program lifecycles.
Investment criteria
We buy good businesses and make them better by improving how they operate end-to-end.
- All B2B; open to most sectors, with emphasized verticals
- ~$5M – $20M revenue, $1M – $5M EBITDA, with solid balance sheets
- Growing or stable markets; ideally capital-light models with structural potential for high returns on capital
- Management welcome to remain in seat; outside operators brought in to assist
- Full operational development, not roll-ups or financial engineering as the primary value driver
Have a business worth building on?
We would love to hear from founders, management teams, and advisors. Reach out and start a conversation - no formalities required.