Over the past 25+ years, ScaleCo has managed four committed funds and invested more than $165M in 22+ platform companies.
ScaleCo – 2018 – Present
Wanting to further enhance the direct support being provided to each management team, Mr. Anderson founded ScaleCo in 2018, an entrepreneurial-minded private equity fund purpose-built to drive sustained growth. The theory: hire motivated people to work with the management teams of our companies, and create a pipeline of talented people who would eventually own and operate companies. In 2018, Evolution began the process of exiting Budco, and listed the company for sale. After receiving several offers from strategic buyers below what was thought to be the companies value, Brendan decided to invest in Budco to continue the growth plan. ScaleCo was formed to assist Evolution companies, and started investing in its own portfolio in 2020. PSP Metrics was purchased as the first ScaleCo only investment, followed by Innoplast, which was added to the portfolio in 2021.
Evolution Capital – 2006 to 2018
In 2006, Mr. Anderson founded Evolution Capital Partners (Evolution) to execute a vision. This vision was based on finding and supporting entrepreneurially minded individuals by providing a platform for them to transform. The Evolution model provided these individuals with capital and operating expertise to growth companies. Evolution formed three committed funds, backing 16 companies and management teams, and developed an operating process that would better assist these teams, especially early in the process. Mr. Anderson’s long-term goal to this day remains to duplicate the culture and model created by his Chicago-based customers. The model identified the opportunity to transform the large number of small businesses in need of support to achieve sustained growth, along with a multitude of driven individuals.
First Business – 1998 to 2017
In 1998, through an advertisement in the Cleveland Plain Dealer, Mr. Anderson identified and purchased Stam, Inc., a manufacturing company based in Mentor, Ohio with about 50 employees. Mr. Anderson partnered with an existing employee of Stam to purchase the company using mostly seller financing and bank debt. He ran the day-to-day operations of the business for many years alongside the co-owner.
Chicago – 1988 to 2001
From 1988 to 1994, while working as a commercial banker in Chicago, Brendan Anderson gained experience financing small businesses. He was extremely fortunate to have found a group of bank customers that embraced energetic entrepreneurs in business ventures. In 1996, these bank customers invested $3.6 million in a platform founded by this group and led by Mr. Anderson. They had identified a bankrupt industrial park in Sugar Grove, IL and offered Mr. Anderson equity if he could figure out how to restructure the bonds and debt. Mr. Anderson was 30 years old. In 2001, the group raised $5.2 million to fund a de novo state-chartered bank in the industrial park, again, lending to small businesses. Mr. Anderson received equity, served on the board of the bank and was a member of the loan committee. These investors shared resources and were open to backing people of all backgrounds. Mr. Anderson was one of many who received capital, experience, a network, and other resources from this group of investors. As important, these investors were open to including other investors and resources unknown to them prior to these transactions.