Key Takeaways
- • In 2025, 4.98% of Utah's private companies were backed by private equity or venture capital, versus a national average of 3.49%, according to S&P Global Market Intelligence, placing Utah consistently among the top three states in PE penetration behind only California and Massachusetts.
- • The University of Utah became the first collegiate athletic department in the country to close a private equity transaction in June, partnering with New York-based Otro Capital to create Crimson Brand Partners.
- • Sandlot Partners, a Utah-headquartered firm, has deployed about $1 billion in equity, mostly into local companies, according to co-founder Casey Baugh.
- • Nationally, PE deal counts are falling as firms grow more selective, per an August 2026 S&P Global Intelligence report, while higher interest rates have slowed exits and capital deployment.
- • Advisers quoted in the article urge owners to define their goals before choosing a capital partner, and note that a bank loan is a cheaper option for owners who only need capital.
Summary
Private equity has established a substantial presence across Utah, spanning college sports, technology and the skilled trades. Utah Business reports that in June the University of Utah closed a private equity transaction with New York-based Otro Capital, creating Crimson Brand Partners, a for-profit entity that now manages the Utes' ticketing, sponsorships, licensing, digital media and events. In July, Carlyle's first investment in its middle-market aerospace, defense, government and industrials platform was the acquisition of Secturion Systems, a Centerville provider of NSA-certified encryption for military infrastructure. Salt Lake City commercial HVAC and plumbing contractor Mechanical Service & Systems also joined PremiStar, a national portfolio company backed by Partners Group, which manages $186 billion in assets.
According to S&P Global Market Intelligence, 4.98% of Utah's private companies were backed by private equity or venture capital in 2025, compared with a national average of 3.49%. Several factors are cited for this penetration. Casey Baugh, co-founder and managing partner of Sandlot Partners, credits the state's culture of church missions, door-to-door sales and multi-level marketing with producing founders skilled in revenue generation. Venture capital is also prominent, with Silicon Slopes attracting local firms such as Sorenson Capital and Pelion Venture Partners as well as national players including Sequoia Capital and KKR. Zach Larkin, managing director at The Cynosure Group, said the state's banking ecosystem has matured, noting that Bank of America has a managing director locally and Zions Bank recently launched an investment banking group.
Market conditions are shaping deal flow. Higher interest rates have made acquisitions more expensive, since many are partly debt-financed, and this has slowed exits. Larkin said the difficulty of exiting heavily levered businesses is slowing the return of capital and the deployment of capital. Nationally, according to an August 2026 S&P Global Intelligence report, PE deal counts are falling as firms become more selective. Smaller funds are growing in number: Fund Launch, co-founded by Bridger Pennington, has helped launch about 400 funds with average targets near $30 million, though Pennington notes that these small funds receive little reporting.
For business owners, the decision carries trade-offs. Clixsy co-founder Corey Vandenberg reports receiving six to 10 fund outreach emails a week and says he is skeptical of private equity, citing concerns about cash-flow focus and the effect of acquisitions on brand quality and client relationships. Pennington argued that private equity has produced substantial wealth and redistributed it to founders. Baugh advised owners to align on goals before selecting a partner, while Larkin said owners who only need capital and have EBITDA should consider a bank loan because it is cheaper.
According to S&P Global Market Intelligence, 4.98% of Utah's private companies were backed by private equity or venture capital in 2025, compared with a national average of 3.49%. Several factors are cited for this penetration. Casey Baugh, co-founder and managing partner of Sandlot Partners, credits the state's culture of church missions, door-to-door sales and multi-level marketing with producing founders skilled in revenue generation. Venture capital is also prominent, with Silicon Slopes attracting local firms such as Sorenson Capital and Pelion Venture Partners as well as national players including Sequoia Capital and KKR. Zach Larkin, managing director at The Cynosure Group, said the state's banking ecosystem has matured, noting that Bank of America has a managing director locally and Zions Bank recently launched an investment banking group.
Market conditions are shaping deal flow. Higher interest rates have made acquisitions more expensive, since many are partly debt-financed, and this has slowed exits. Larkin said the difficulty of exiting heavily levered businesses is slowing the return of capital and the deployment of capital. Nationally, according to an August 2026 S&P Global Intelligence report, PE deal counts are falling as firms become more selective. Smaller funds are growing in number: Fund Launch, co-founded by Bridger Pennington, has helped launch about 400 funds with average targets near $30 million, though Pennington notes that these small funds receive little reporting.
For business owners, the decision carries trade-offs. Clixsy co-founder Corey Vandenberg reports receiving six to 10 fund outreach emails a week and says he is skeptical of private equity, citing concerns about cash-flow focus and the effect of acquisitions on brand quality and client relationships. Pennington argued that private equity has produced substantial wealth and redistributed it to founders. Baugh advised owners to align on goals before selecting a partner, while Larkin said owners who only need capital and have EBITDA should consider a bank loan because it is cheaper.
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