Former Linsalata trio sees 'opportunity' in own firm

With activity surging in the private equity sector, some veterans from Cleveland's Linsalata Capital Partners see fertile ground to launch a new firm of their own.

But what's different between Watervale Equity Partners -- the new firm co-founded by Mike Faremouth, Jim Guddy and Eric Bacon -- and Linsalata, one of Northeast Ohio's oldest private equity firms, will be a focus on a lower end of the middle market, which is just outside the traditional focus of Linsalata and similar funds of their scope.

"What brought all of us together in the new firm was the opportunity that we are focusing on the company size," Guddy said. "We're increasingly seeing that part of the market with an incredible amount of opportunity for private equity. It's all about the opportunity."

The group formed Watervale in late July. It's an amicable split from Linsalata, the office out of which they're all working for the time being as each sees through pieces of their current portfolio.