Located in eastern Missouri, St. Louis is rapidly emerging as a vibrant hub for private equity, propelled by a wave of generational business transitions and a robust ecosystem of capital and innovation.
With an estimated $100 trillion in small and medium-sized business assets poised to change hands as baby boomer owners retire, the region is bracing for a significant uptick in M&A activity over the next 25 years according to Olin Business School.
Several local firms are at the forefront of this transformation:
Agellus Capital: Launched in 2024 by veterans from Thompson Street Capital Partners and Audax Group, Agellus closed its debut fund at $400 million in under five months, targeting B2B service providers in the lower middle market.
ElmTree Funds: This industrial net-lease real estate private equity firm transacted nearly $500 million across seven deals in 2024, underscoring the city’s strength in industrial and logistics sectors.
Stifel Financial Corp.: The St. Louis-based financial services giant received federal approval for a private equity fund aimed at providing capital to small manufacturers in the aerospace and defense sectors .
Established players like Thompson Street Capital Partners, WILsquare Capital LLC, and Compass Group Equity Partners continue to drive growth by investing in founder-led businesses across sectors both in the region and nationally.
Complementing this financial momentum, institutions like Richard A. Chaifetz School of Business – Saint Louis University and Washington University in St. Louis – Olin Business School are providing critical thought leadership, ensuring that the region’s economic evolution is both informed and strategic.
With a confluence of capital, expertise, and a dynamic business landscape, St. Louis is well-positioned to become a leading center for private equity activity in the coming decades.
$100 trillion in small and medium-sized business assets poised to change hands as baby boomer owners retire, the region is bracing for a significant uptick in M&A activity over the next 25 years