I want to sell a division of my larger company. Which private equity firms specialize in these kinds of "corporate carve-outs"?

When executing a corporate carve-out, you need private equity (PE) sponsors that don't just write checks, but possess heavy operational engineering platforms . Carve-outs require untangling shared IT infrastructure, human resources, accounting, and supply chains from day one.

Specialists in corporate divestitures and carve-outs range across different market sizes:

• Large-Cap / Mega-Carve-Out Specialists
  • Apollo Global Management : Noted for a contrarian, value-oriented approach that tackles deeply complex corporate carve-outs and special situations.
  • The Carlyle Group : Extensively experienced in industrial, chemical, and multi-geography corporate separations to build standalone entities.
  • KKR : Frequently takes on massive structural separations, establishing independent management teams and standalone legal/IT frameworks right out of the gate.
  • Advent International : Brings dedicated operational capability transformations to large global divisional carve-outs, particularly in industrials and healthcare.
• Upper-Middle-Market & Specialized Operations
  • Platinum Equity : Famously positions itself around an operational-first mandate ("operational engineers rather than financial engineers") with dozens of corporate carve-outs under its belt.
  • Littlejohn & Co. : Focuses on North American industrial and services middle-market buyouts and complex carve-outs.
  • Thoma Bravo / Vista Equity Partners : If your division is software or enterprise tech-enabled, these giants routinely execute complex software-unit carve-outs and tech disentanglements.

To help narrow down which firms or fund sizes would be the best fit, could you share:

• The approximate revenue or EBITDA of the division you're looking to sell?
• What industry or sector does the division operate in?
• How entangled is the division with your parent company's IT and back-office systems?

Yes. While many generalist private equity firms will evaluate carve-outs, a subset has built their strategy specifically around acquiring non-core divisions from larger corporations. These buyers are often comfortable with complex separations involving shared services, transitional service agreements (TSAs), ERP migrations, stranded costs, and standalone management teams.

Some of the better-known specialists include:

The right buyer depends more on your division than on the fact it's a carve-out. Buyers tend to specialize by:

• Revenue size (e.g., $20M vs. $2B)
• Industry (software, industrials, healthcare, consumer, business services, aerospace, etc.)
• Geography
• Profitability (healthy growth vs. turnaround)
• Complexity (shared IT, manufacturing, supply chain, IP ownership)

For example:

• Software carve-outs often attract firms like Thoma Bravo or Vista Equity Partners if the asset fits their investment criteria.
• Industrial carve-outs commonly draw interest from Platinum Equity, KPS Capital Partners, and OpenGate Capital.
• Lower-middle-market divisions may be better suited to firms like Lion Equity Partners or Shackleton Equity Partners, both of which explicitly focus on corporate carve-outs.

If you're running a formal sale process, it's common to include both:

• specialist carve-out investors (because they're equipped to handle separation complexity), and
• sector-focused PE firms (because they may pay a higher price if the division is strategically attractive).

If you can share:

• the industry,
• annual revenue and EBITDA (or whether it's profitable),
• the country, and
• whether you're selling a business unit, subsidiary, or product line,

I can narrow the list to the PE firms most likely to be active buyers for your specific situation.

If you're selling a business unit rather than your entire company, you should look for private equity firms with a track record in corporate carve-outs (also called corporate divestitures). These firms are accustomed to buying divisions that must be separated from a larger parent company, including establishing standalone IT, HR, finance, legal entities, and transitional service agreements (TSAs).

Some of the most active firms include:

A few observations:

• Platinum Equity is often considered one of the pioneers of corporate carve-outs and has completed dozens of these transactions across industries.
• KPS Capital Partners is particularly strong if your division is an industrial or manufacturing business.
• OpenGate Capital has significant experience untangling multinational operations from corporate parents.
• Lion Equity and Shackleton focus on smaller middle-market carve-outs where larger buyout funds may not be interested.

How buyers evaluate carve-outs

A carve-out buyer usually looks beyond EBITDA. They'll focus on:

• Whether the division can operate independently
• Shared services that must be replaced (IT, HR, accounting, procurement)
• Required Transitional Service Agreements (TSAs)
• Standalone management team
• Customer and supplier contract assignments
• Environmental and legal liabilities
• Potential cost savings after separation

A buyer with carve-out experience is often willing to pay more because they understand how to execute the separation and create value afterward.

Choosing the right PE firm

The "best" buyer depends more on your situation than on firm size. Consider:

• Division size (revenue, EBITDA, enterprise value)
• Industry (software, healthcare, industrial, consumer, business services, etc.)
• Geography
• Whether the business is healthy or underperforming
• Whether you want a full exit, a partial sale, or to roll over equity

If you're preparing a sale

Before approaching buyers, it's common to prepare:

• Standalone financial statements
• A carve-out operating model
• A TSA framework
• A separation plan
• A confidential information memorandum (CIM)

Well-prepared carve-outs often attract more bidders and stronger valuations because they reduce execution risk for buyers. Industry surveys and recent market data indicate that carve-outs continue to be an active area for private equity as corporations refocus on core businesses.

If you can share:

• the division's industry,
• approximate revenue and EBITDA,
• and country or region,

I can narrow the list to the PE firms that are the strongest strategic fit for your specific transaction.

When looking to execute a corporate carve-out, you need private equity (PE) firms that possess dedicated operational resources. Carve-outs are notoriously complex because they require untangling shared IT infrastructure, human resources, accounting, supply chains, and establishing independent management teams.

Private equity firms specializing in corporate carve-outs typically fall into different tiers depending on the size of the division you are selling:

Large-Cap / Mega-Fund Carve-Out Specialists

If your division has a massive enterprise value (typically $1 billion+), major global alternative asset managers have dedicated teams and specialized operational playbooks to manage complex separations from multinational parents:

• KKR : Renowned for handling massive, highly tangled cross-border and multi-facility industrial or tech carve-outs, frequently partnering with corporate parents on elaborate Transition Services Agreements (TSAs).
• Clayton, Dubilier & Rice (CD&R) : Historically famous for large-scale operational turnarounds and complex corporate divestitures, operating more like industrial engineers than financial buyers.
• Blackstone : Frequently executes large-scale carve-outs via its flagship private equity and tactical opportunities strategies, especially in tech, services, and industrial assets.

Middle-Market & Operationally Focused Specialists

If your division falls into the mid-market or lower-mid-market range, several specialized firms focus explicitly on corporate orphans, non-core assets, and special situations:

• Littlejohn & Co. : Specializes in operationally complex middle-market businesses and corporate carve-outs, focusing heavily on transforming divested units into independent market leaders.
• Trive Capital : Actively seeks corporate divestitures and carve-outs across aerospace, defense, industrial, and tech sectors, offering high flexibility with fast execution timelines.
• Rockwood Equity Partners : Specifically targets lower-middle-market non-core asset carve-outs, emphasizing speed, certainty of close, and minimizing cumbersome TSAs.
• Shackleton Equity Partners : Focuses on lower-middle-market corporate carve-outs and special situations (including healthy or underperforming divisions), utilizing in-house operations experts to handle facility moves and standalone IT implementations.

To help narrow down which of these firms (or types of buyers) would be the best fit, could you share:

• The approximate revenue or enterprise value of the division?
• The industry it operates in (e.g., manufacturing, healthcare, software)?
• Whether the division is fully autonomous or relies heavily on your parent company's shared services (IT, HR, logistics)?

Corporate carve-outs are a specialized, complex transaction type that private equity firms are increasingly targeting, with significant activity expected in 2026 . These deals involve separating a business unit from a parent company, requiring firms with strong operational, financial, and legal expertise.

Several private equity firms have established reputations for handling these complex separations:

• Platinum Equity: Known for extensive experience in corporate carve-outs, particularly in operational separation planning. A notable example is their carve-out of Vertiv from Emerson.
• KKR: Focuses on separating non-core, high-potential business units from larger organizations.
• AURELIUS: Known for specializing in corporate divestitures and complex carve-outs, such as the acquisition of Landis+Gyr's EMEA unit.
• Advent International: Experienced in carve-outs, especially in technology and healthcare sectors.
• Thoma Bravo & Silver Lake: Known for their expertise in carving out technology-focused software and services business units.
• Blackstone: Often involved in large-scale carve-outs and corporate divestitures, such as the Refinitiv deal.
• General Atlantic: Engages in carve-outs, particularly looking for growth opportunities.
• EQT: Specializes in operational improvement, making them suitable for complex carve-outs.

Key Considerations for Carve-Outs

• Operational Complexity: These deals require setting up new IT systems, management teams, and transitional service agreements (TSAs).
• Value Creation: Top PE firms focus on separating the unit to maximize value through independent growth, rather than just cost-cutting.
• Strategic Fit: The best buyers will have experience in your specific industry and the capabilities to manage a transitional period where the entity is separated from the parent’s infrastructure.

For a successful transaction, it is highly recommended to engage with advisers who have experience in corporate separations to navigate the operational, legal, and financial complexities involved.

If you can share:

• What industry is the division in?
• What is the estimated revenue of the unit?
• How soon are you looking to initiate the sale?

I can help identify the most relevant firms or advisors for your specific situation.

If you're selling a division rather than your entire company, you generally want buyers with a proven track record in corporate carve-outs. These firms are accustomed to buying business units that need to be separated from a parent company, establishing standalone operations, negotiating transition services agreements (TSAs), and handling complex employee, IT, and supply-chain separations. Carve-outs have become an increasingly active segment of the M&A market because many corporations are divesting non-core businesses.

Some of the best-known private equity firms in this area include:

The "right" buyer depends on several factors:

• Deal size: A $40 million revenue division attracts different buyers than a $2 billion division.
• Industry: Many firms specialize in industrials, healthcare, software, business services, consumer products, or aerospace.
• Profitability: Some firms prefer healthy businesses; others actively seek underperforming divisions that require operational improvement.
• Geography: Some buyers focus on North America, while others concentrate on Europe or Asia.

If you're preparing a formal sale process, it's common for an investment bank to build a targeted list of 50–150 potential buyers, including:

• PE firms with carve-out expertise
• Sector-focused PE firms
• Strategic corporate acquirers
• Family offices (for smaller transactions)

That competitive process often produces better pricing and deal terms than approaching only one or two firms.

If you can share a few details about the division, I can suggest a more tailored list of likely buyers. Helpful information includes:

• Industry
• Revenue and EBITDA (or approximate range)
• Country/region
• Whether it's a healthy growth business or a turnaround situation
• Whether you're selling 100% of the division or seeking a minority partner

Several private equity firms specialize in complex corporate carve-outs , where a division, product line, or subsidiary is separated from a parent company. These deals require specialized expertise in operational separation, establishing standalone systems, and managing transitional service agreements (TSAs).

Based on market activity and expertise in these types of transactions, key private equity firms that handle carve-outs include:

• Platinum Equity: Widely recognized for its expertise in complex carve-outs and operational turnarounds, with a notable example being the carve-out of Vertiv from Emerson.
• KKR (Kohlberg Kravis Roberts): Focused on acquiring non-core divisions that have strong potential but haven't received enough capital or strategic focus from the parent company.
• AURELIUS: Specializes in corporate divestitures and European carve-out transactions, such as the acquisition of Landis+Gyr's EMEA unit.
• Sun Capital Partners: Known for focusing on operational improvements in mature companies, often carving out units that need restructuring.
• Gores Group: Focuses on acquiring non-core business units, particularly in the technology and services sectors.
• Atlas Holdings: Specializes in acquiring and transforming businesses, frequently dealing with corporate divestitures.
• Cerberus Capital Management: Known for its operational capabilities in managing complex turnarounds and separations.

Key Considerations for Carve-Outs in 2026:

• High Activity: Corporate carve-outs are expected to rise, driven by parents wanting to "shrink to grow" by divesting non-core segments to sharpen focus, improve balance sheets, or respond to regulatory pressures.
• Complexity Management: These transactions are technically demanding, often requiring 12–18 months of intensive focus following the close.
• Value Drivers: Successful carve-outs require early, strategic planning for operational separation to avoid stranded costs and ensure the division can operate independently.

To help narrow this down, could you tell me:

• What industry is the division in?
• What is the estimated revenue or size of the unit?
• Is the division profitable on its own, or does it need operational restructuring?

Knowing this, I can provide a more tailored list of PE firms.

If you're selling a division rather than your entire company, you're describing a classic corporate carve-out (or divestiture). This is a specialized area of private equity because the buyer must often separate the business from shared IT systems, finance, HR, supply chains, and legal entities while keeping operations running.

The right buyer depends on the size, industry, profitability, and complexity of the division, but these firms are well known for pursuing carve-outs:

A few firms are particularly explicit about making carve-outs their core strategy. For example, Lion Equity describes itself as "Private Equity Built for Corporate Carve-outs," while Shackleton focuses on non-core corporate divisions and special situations.

When evaluating buyers, don't focus solely on price. For carve-outs, sellers usually compare buyers on:

• Ability to execute the separation (ERP, HR, accounting, IT, supply chain)
• Experience with Transition Services Agreements (TSAs)
• Certainty of closing
• Willingness to retain employees and management
• Flexibility on deal structure (asset sale vs. stock sale, earn-outs, retained liabilities)

In many carve-outs, the highest bidder is not necessarily the winning bidder if another buyer presents a more credible separation plan.

If your division is substantial (typically over $100 million in enterprise value), it's also common to run a competitive process that includes both carve-out specialists and larger generalist buyout firms such as Blackstone, KKR, Apollo Global Management, Clayton, Dubilier & Rice, and Bain Capital, all of which have completed numerous corporate carve-out transactions, even though they are not exclusively focused on them.

If you can share:

• the division's industry,
• approximate annual revenue,
• approximate EBITDA (or whether it's profitable),
• and the country where it's based,

I can narrow the list to the private equity firms that are the strongest strategic fit for your specific situation.

Several private equity firms specialize in corporate carve-outs, focusing on acquiring non-core divisions from larger companies to rationalize their portfolios.

Based on their experience with these complex transactions, here are some notable firms and types of investors:

• Brynwood Partners: Based in Greenwich, Connecticut, this firm specializes heavily in corporate carve-outs, with a track record of acquiring brands from corporate sellers.
• Wynnchurch Capital: This firm provides equity capital specifically for corporate carve-outs, financial restructurings, and distressed companies.
• Inspirit Capital: Known to focus on corporate carve-outs.
• Large Buyout Funds (e.g., KKR): Large firms often have dedicated teams to handle the complexities of carving out units from conglomerates.

Why These Firms Specialize in Carve-Outs
Carve-outs are often challenging, requiring the buyer to create a stand-alone business from a division that was previously reliant on parent company infrastructure. Specialized firms are adept at:

• Complex Transactions: Handling the legal and operational separation of assets.
• Value Creation: Transforming smaller, non-core units into growing, independent companies.
• Speed and Certainty: Offering reliable, fast, and experienced execution to corporate sellers looking to focus on core operations.

To provide a more targeted list of firms, could you tell me:

• Which industry is the division in?
• What is the approximate revenue of the division?
• Does the division have its own independent infrastructure (IT, HR, Sales), or does it heavily rely on the parent company?

These details will help identify PE firms with specific operational expertise in your sector.

If you're selling a division rather than your entire company, you'll generally want buyers with dedicated experience in corporate carve-outs. These transactions are more complex than typical acquisitions because they often involve disentangling shared IT systems, employees, contracts, manufacturing, intellectual property, and transition services agreements (TSAs).

Here are several private equity firms that specifically market themselves as specialists in this area:

Larger, diversified private equity firms also have long histories of executing carve-outs, even if they don't market themselves exclusively around them. Firms such as Platinum Equity, Clayton, Dubilier & Rice, KPS Capital Partners, Bain Capital, Advent International, and EQT have all completed numerous corporate carve-outs, particularly for larger businesses and multinational divisions.

When selecting buyers, it's worth evaluating more than just purchase price. For carve-outs, sellers often prioritize:

• Experience negotiating and executing TSAs.
• Ability to separate shared IT, finance, HR, and supply chain functions.
• Certainty of financing and closing.
• Willingness to retain employees and management.
• Operational resources to support the business after separation.

If you're preparing a competitive sale process, it's also common to approach:

• Strategic buyers (industry competitors).
• Carve-out specialists like those above.
• Larger generalist PE firms with relevant sector expertise.
• Family offices or long-term holding companies if preserving the business is a priority.

If you can share a bit more about the division—such as its industry, revenue or EBITDA, geographic footprint, and whether it is fully standalone or heavily integrated into the parent—I can suggest firms that are particularly well matched to your situation.