IN THENEWS

April 30, 2025

As the new member participants in the Illinois Venture Capital Association (IVCA) keeps expanding, the current membership are given new opportunities for networking, in addition to optimizing support and partnerships, which leads to guidance and new ideas for Venture Capital, Private Equity and support industries.

The latest new member is the firm of NextGen Growth Partners, who describe themselves as creating “an ecosystem that empowers entrepreneurs to acquire great companies that are poised for growth.”

The following is a Q&A profile with NextGen Growth Partners, which explores the firm’s background and their expectations for interacting with the IVCA.

New Member: NextGen Growth Partners
Representative: Rich Herrick, Chief Financial Officer/Chief Compliance Officer

IVCA: What is a brief history of and background of Next Gen Growth Partners?

NextGen Growth Partners: NextGen Growth Partners (NGP) was founded in 2016 by Brian O’Connor to reimagine the Entrepreneurship Through Acquisition (ETA) model by backing high-caliber entrepreneurs to acquire and scale great businesses. Drawing on his experience as both a Private Equity investor and an operator – most notably leading Innflux to a successful exit – Brian built NGP on the belief that the right leaders, paired with the right companies, can drive outsized value.

Since inception, NGP has executed over 20 platform and add-on investments, grown from its Chicago headquarters to offices in Nashville and Austin, and exited four businesses. The firm’s model – anchored by its values of Relationships, Rigor, and Results – focuses on fundamentally strong, lower-middle-market businesses in growing industries. In July 2024, NGP closed Fund III at its hard cap in a first and final close.
IVCA: The goal of Private Equity firms is to acquire and grow. What do you think distinguishes Next Gen Growth Partners within that realm, and what specific practices make your firm work better?

NGP: We bring in high-caliber Entrepreneurs in Residence (EIRs) who predominately source their own deals, build trust with the sellers, and then step in as full-time operators post-close. They relocate to the business’s headquarters, roll up their sleeves, and lead from day one. That level of commitment is rare, and it changes the dynamic of the transition.

We focus on preserving legacy while unlocking new growth. Our sellers often stay involved in some capacity—not because they have to, but because they’re genuinely excited about where the business is headed and who’s taking it there.

By placing sharp, driven talent into the right businesses—and surrounding them with a platform of support—we’re creating outcomes that go beyond returns. It’s about building on what’s already working and taking it to the next level, together.
IVCA: In your ecosystem of empowerment, how do you define both that word and work within the culture of what you acquire and how you make those acquisitions successful?

NGP: Our roots in Chicagoland, and especially at the University of Chicago Booth School of Business, are a core part of who we are. Brian O’Connor, a Chicago native, co-created Booth’s Entrepreneurship Through Acquisition (ETA) course, alongside Mark Agnew, and still teaches it today. He also hosts the ETA INSIDER Podcast through Booth and the Polsky Center, which has become a widely respected platform and an entry point into ETA world … even for those outside of Booth. These connections give NGP a unique and consistent pulse on the ETA ecosystem.

We’re also fortunate to have an incredible advisory board, many of whom are deeply connected to the Booth and broader academic communities in ETA and Private Equity. These relationships not only strengthen our access to top-tier talent, but also help shape our thinking, expand our reach, and keep us on the front edge of a constantly evolving market.
IVCA: What industries does NGP focus on?

NGP: At NGP, we focus on outsourced B2B services … especially mission-critical, recurring-revenue businesses in industries where we can drive long-term value through operational excellence.

We invest across diverse sectors ranging from traditional blue-collar services (HVAC, commercial landscaping) to technology-enabled solutions (IT managed services, freight audit compliance, outsourced finance/accounting) and specialized niches like property security and beverage alcohol compliance.
These varied investments are connected through alignment with our investment thesis. We prioritize spaces with stable fundamentals, fragmented competitive landscapes, and clear growth runways. Most crucially, we back entrepreneurs with a distinctive ‘right to win’ … whether through industry experience, powerful networks, or deep conviction in their space.
IVCA: Finally, what is your unique value proposition to prospective sellers?

NGP: For prospective sellers, our value proposition is rooted in respect – for their legacy, their team, and the business they’ve built. We’re values-oriented partners who don’t just acquire companies, we carry forward what’s working and build on that foundation.

Beyond capital, we bring a proven growth playbook combining strategic acquisitions with operational improvements. Our experienced team delivers expertise with a hands-on, collaborative approach that ensures smooth transitions and positions businesses for long-term success. Our entrepreneur-operators aim to thoughtfully shepherd them into their next chapter of growth.

For the website of NextGen Growth Partners, click here.