Top private equity firms have largely overlooked Tampa Bay, primarily due to its less-developed financial market infrastructure, according to Gene Yoon, co-founder and managing partner of New York-based Bregal Sagemount. The firm is now targeting around a dozen companies in the Tampa Bay area and plans to invest in 50 to 60 companies across Florida.

Historically, Tampa Bay was not on Bregal Sagemount's radar, but in the past five years, the firm has made strides in the region, investing in three local companies. Yoon noted that breaking into the Tampa Bay market has been challenging for newcomers, as the local business community is tightly knit. He emphasized the importance of building relationships with local entrepreneurs to gain acceptance.

Tampa Bay's financial market is less mature compared to Miami's, which offers easier access to major investment hubs like New York and Chicago. Despite these challenges, Bregal Sagemount is drawn to emerging markets like Tampa Bay, which have been historically undervalued by larger private equity firms. The region is rich in bootstrapped, founder-owned businesses, particularly in cybersecurity and technology.

Yoon attributes the firm's success in Tampa Bay to its investment strategy, which focuses on growth and value creation. Bregal Sagemount employs a robust value creation team that assists portfolio companies in scaling, which resonates well with founder-owners. The firm’s growth-oriented investment thesis aims to drive economic value and create jobs in the area, positioning Bregal Sagemount as a preferred local partner.

The firm’s first investment in Tampa Bay was a minority stake in logistics software company Transflo in 2021, followed by a 2023 investment in Neptune Flood in St. Petersburg. Its latest deal, completed in January, was with cybersecurity consulting firm 360 Advanced. Florida now represents about 10% of Bregal Sagemount's potential target investments.

Yoon described Tampa Bay as an appealing environment for entrepreneurs, citing the talent pool from local universities, a favorable labor supply, quality of life, and a business-friendly tax environment. Bregal Sagemount is recognized as a top 10 global growth equity investment firm, with nine offices across the U.S. and internationally, managing a portfolio of over 70 companies.

In summary, Bregal Sagemount is making significant inroads into the Tampa Bay market, focusing on local relationships and growth-oriented investments in technology and cybersecurity sectors. The firm sees potential in the region's entrepreneurial landscape, aiming to become a key player in its economic development.