From One-Person Shop to $4.6 Billion in Assets Under Management

Most private equity firms start with institutional backing. A founding team raises capital from pension funds, endowments, and family offices before making their first investment. Waud Capital Partners took a different path.

In 1993, Reeve Waud launched the firm as a self-funded, one-person operation in Lake Forest, Illinois. Thirty-two years later, the firm manages approximately $4.6 billion in assets and employs roughly 70 professionals.

1993: Self-Funded Start in Lake Forest

At age 29, Reeve Waud decided to establish his own investment firm. He had experience from his time at Salomon Brothers, where he worked in corporate finance and co-founded the venture capital group, and at GTCR, a Chicago-based private equity firm.

The initial years were bootstrapped. Reeve Waud invested his own capital rather than raising money from institutional investors. This approach provided complete control over investment decisions but limited the size of transactions he could pursue.

The firm initially operated from Lake Forest, a suburb north of Chicago. This location offered lower overhead than downtown office space while maintaining proximity to the city’s business community.

First Institutional Fund in 1998

Five years after founding, Waud Capital Partners raised its first institutional fund in 1998. This marked a transition from solo investor to institutional private equity firm. With outside capital came outside investors—limited partners who expected returns, reporting, and governance structures.

Raising institutional capital required demonstrating a track record. The first five years had established Reeve Waud’s ability to identify opportunities, complete acquisitions, and generate returns. That performance provided evidence for institutional allocators considering the firm’s first fund.

The firm continued raising successive funds over the following decades. Fund III, raised in 2011, totaled $487 million. Fund IV, closed in 2016, reached $1.05 billion—more than double the size of its predecessor.

Scaling to 70 Professionals by 2023

Larger funds require larger teams. Sourcing deals, conducting due diligence, closing transactions, and managing portfolio companies demands specialized expertise. Waud Capital Partners built teams for healthcare investing, software/technology investing, business development, human capital, and operations.

In 2009, the firm relocated from Lake Forest to downtown Chicago. The move reflected the firm’s growth and facilitated recruitment of investment professionals who preferred urban office locations.

By the firm’s 30th anniversary in November 2023, Waud Capital employed approximately 70 people. The team includes partners, principals, vice presidents, associates, analysts, and support staff across investment, operations, and administrative functions.

“I am very humbled to be celebrating this major milestone,” said Reeve Waud in November 2023. “The beginning days were far from glamorous, and the future was entirely uncertain, but I had confidence in the opportunity to partner with exceptional executives and build exciting and profitable companies.”

The firm’s growth in assets under management tracked its team expansion. As of December 31, 2022, Waud Capital Partners managed approximately $4.6 billion. These assets are deployed across healthcare and software/technology investments, with the firm having completed more than 460 investments since 1993.Reeve Waud personally invested approximately $200 million across the firm’s first four funds. This capital commitment aligns his interests with those of limited partners and demonstrates conviction in the firm’s investment strategy.