Monday 13th October 2025
Behind the dollars, private equity is still personal in the lower mid-market
Alignment is everything in private equity, says Fortitude's Bryan Brown. That and understanding individual psychology.
Raised in a trucking family in rural Queensland, Bryan Brown credits his early years working forklifts and running logistics with shaping the way he now relates to company founders. “That background helps with empathy,” he said. “It gives you perspective when you’re partnering with people who built a business from scratch.”
As a partner at Fortitude Investment Partners, Brown focuses on a part of the market that is often overlooked. “Lower mid-market, for us, means companies with $3 million to $20 million in annual earnings,” he said. “We’re usually the first professional capital into these businesses. That comes with its own challenges and a lot of opportunity.”
His approach relies on two powerful forces: aligned incentives and time. “Private equity works because of superhuman incentives for both managers and CEOs,” Brown said. “These people will work far harder than they otherwise might if they believe they can create generational wealth.”
Alignment with management is not a catchphrase at Fortitude, it is the centrepiece of the firm’a approach. “All our great investments have had highly aligned, highly effective management teams,” he said. “It’s not just about finding the right strategy or market. It’s about finding people who will do extraordinary things, because they’re properly incentivised to do so.”
One such example was Nutra Organics, a health supplement business aimed at women aged 25 to 55. “We brought in Oliver Horn, who used to run Swisse Wellness,” Brown said. “Taking someone with that scale of experience and giving them ownership in a $20 million revenue business transformed it. His impact would have been muted in a $500 million company.”
The firm’s deal flow is surprisingly deep. “We think there are about 70,000 SMEs in Australia that meet our criteria,” he said. “That compares with 500 or so at the large end of town. You can access better valuations in our part of the market, and there’s more headroom for transformation.”
Brown doesn’t believe in rigid playbooks. “Some firms try to make every business look like the last one they owned,” he said. “We don’t think that works. SMEs outperform because they’re not like the incumbents. They’re more agile, more aggressive, and more engaged.”
That aggression often accelerates post-deal. “Founders are more likely to lean in once they’ve had some liquidity,” Brown said. “Suddenly they’re not afraid of losing what they’ve built. They hire more, they invest faster. The psychology shifts.”
On product evolution, Brown is cautiously optimistic. “All our deals to date have been through SPVs and single-asset trusts,” he said. “That doesn’t suit every client, and the industry is maturing. We’ve launched an evergreen fund for broader access, but the key is not letting product design dilute your investment discipline.”
Laurence Parker-Brown is head of content at The Inside Network and managing editor of The Inside Adviser and Investor Strategy News.
