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

Executing a corporate carve-out requires separating a business unit from its parent organization's shared infrastructure, legal framework, and culture . Because this involves heavy operational lifting—such as setting up standalone IT systems, establishing independent supply chains, and building a distinct management team—specific private equity (PE) firms actively market and build specialized playbooks for these complex transactions.kkr.com+1

Large-Cap & Global Specialists

Large-cap PE firms frequently execute high-profile carve-outs, often taking non-core or sluggish divisions of major multi-nationals and turning them into independent market leaders:kkr.com

• • KKR : Has a long history and dedicated operational execution teams explicitly focused on unearthing value from corporate carve-outs across industrial, healthcare, and technology sectors.kkr.com
• • Advent International : Highly regarded for executing complex, large-scale global carve-outs (particularly in Europe and cross-border deals), frequently spinning out financial, industrial, and specialty chemical divisions.
• • Blackstone : Possesses massive capital deployment capabilities and global operational networks to absorb large enterprise divisions, restructure operations, and scale them independently.buyoutsinsider.com

Mid-Market & Dedicated Turnaround Specialists

If your division falls into the mid-market or lower-middle-market revenue tier, specialized firms focus heavily on operational separation models rather than just financial engineering:

• • Aurelius : Explicitly specializes in complex corporate carve-outs, platform build-ups, and corporate spin-offs (targeting mid-market units with revenues typically starting around €100 million) backed by a massive in-house operational task force.aurelius-group.com
• • H.I.G. Capital : Frequently targets lower-to-middle market corporate divestitures and special situations, moving quickly with dedicated operational and restructuring resources.
• • Shackleton Equity Partners : Focuses explicitly on lower middle-market corporate carve-outs and special situations, managing operational transition, stranded costs, or underperforming carve-out assets.shackletonequity.com

Practical Realities & Structural Trade-offs

• • Transition Services Agreements (TSAs) : Be prepared to negotiate a TSA where your larger company continues to provide IT, HR, or logistics support to the carved-out division for 6 to 18 months post-close. Specialized PE firms will scrutinize the cost and feasibility of exiting these TSAs quickly.
• • Stranded Costs : Parent companies often underestimate "stranded costs"—overhead expenses left behind after the division leaves. Experienced carve-out buyers will price these residual costs aggressively during negotiations.
• • Operational Focus vs. Speed : Specialized carve-out sponsors bring dedicated operating partners to build standalone capabilities rapidly, which usually results in a smoother separation than selling to a strategic competitor burdened by regulatory delays.

If you'd like to narrow this down, please share:

• The approximate revenue or size of the division
• The industry (e.g., tech, manufacturing, healthcare services)
• Whether the division is fully self-sufficient or relies heavily on shared parent company infrastructure

I can help tailor the approach or suggest what preparation steps you should take before going to market.

Yes. Corporate carve-outs—selling a division, subsidiary, or non-core business out of a larger parent—are a specialized part of private equity. The buyer has to handle issues such as standalone financials, TSA arrangements, shared employees, IP, IT systems, contracts, tax structure, and separation of facilities, so firms with actual carve-out experience can be particularly relevant. KPMG’s 2026 M&A survey found that 71% of PE dealmakers were open to or actively pursuing portfolio separations.KPMG

PE firms worth putting on the list

Firm	Particularly relevant because…	Stated focus
Lion Equity Partners	Very explicitly focused on buying divisions of larger corporations and helping with the divestiture process.	Corporate divestitures/special situations; roughly $30–300M revenue and up to $25M EBITDA.Lion Equity Partners
Shackleton Equity Partners	Specializes in corporate carve-outs and non-core divestitures, with an operational approach to separating businesses.	Software, technology, aerospace/defense, telecom, electronics, manufacturing, industrial, e-commerce and consumer.Shackleton Equity Partners+1
Rockwood Equity Partners	Specifically markets itself around lower-middle-market corporate divestitures and understands TSAs, financial separation, IP, employees and contracts.	Lower-middle-market carve-outs/non-core assets.Rockwood Equity
Beaconhouse Capital	Acquires corporate carve-outs and non-core assets and emphasizes internally funded transactions and speed/certainty of closing.	Smaller/more complex carve-outs and underperforming businesses.Beacon House Capital
Aurelius Group	A major European investor with a long history of complex corporate carve-outs and operational transformations.	Pan-European/global corporate carve-outs and special situations.The Wall Street Journal
KPS Capital Partners	Experienced in complex corporate separations and industrial carve-outs.	Industrial/manufacturing and other complex situations.The Wall Street Journal

There are also larger generalist sponsors that routinely pursue carve-outs even though carve-outs aren't their sole strategy. The right universe there depends heavily on the division's EBITDA, enterprise value, industry, geography and complexity.

One important distinction

I'd separate your buyer universe into three groups:

1. Carve-out specialists — often very good at taking a business that isn't currently standalone and making the separation work.
2. Large PE sponsors with carve-out experience — useful for larger divisions where you want substantial equity capacity and potentially a competitive auction.
3. Strategic buyers — another important category, particularly if the division has customers, technology, distribution or manufacturing capabilities that fit an existing platform.

The specialist firms can be particularly useful when the division has messy shared infrastructure or isn't producing clean standalone financials. For example, Lion explicitly discusses seamless transitions and flexible transaction structures, while Shackleton highlights expedited closing and flexibility around stock-versus-asset transactions.Lion Equity Partners+1

If you're actually preparing to sell the division

The buyer list should be tailored rather than simply sending it to every "carve-out specialist." I'd want to know:

• Revenue and EBITDA of the division
• Industry
• U.S. only or international
• Whether it's currently a standalone legal entity
• How much it relies on the parent for IT, HR, finance, sales, manufacturing, facilities, etc.
• Expected enterprise value
• Whether management wants to roll equity
• Whether the parent wants a clean exit or ongoing relationship/TSA

With those numbers, I can give you a targeted list of ~15–25 PE firms, separated into carve-out specialists, larger sponsors, and likely strategic buyers, and explain what size each typically invests and why each might be relevant.

Yes. Corporate carve-outs are a distinct PE specialty, because buying a division from a larger company is very different from buying an independent business: the buyer has to separate IT, finance, HR, contracts, facilities, IP, management, and other shared services—often under a tight TSA/separation timetable.Deloitte+1

A good starting shortlist would be:

Firm	Why it stands out	Rough fit
Apollo Global Management	Carve-outs have been one of Apollo's three core private-equity transaction types for 30+ years.	Larger divisions / large-cap
Lion Equity Partners	Explicitly focused on corporate divestitures and carve-outs; targets roughly $30–300M revenue and up to $25M EBITDA.Lion Equity Partners	Lower-middle market
Shackleton Equity Partners	Dedicated to corporate carve-outs, non-core divestitures and special situations; particularly interesting for technology, industrial, aerospace/defense and consumer assets.Shackleton Equity Partners+1	Lower-middle market
Atar Capital	Specifically highlights experience separating integrated divisions and subsidiaries with complicated IT/ERP and shared-service dependencies.Atar Capital	Middle market
Rockwood Equity Partners	Focuses on opportunistic business-unit divestitures and emphasizes speed/certainty and minimizing TSAs.Rockwood Equity	Lower-middle market
Alpina Equity	Explicit carve-out strategy, including deeply integrated units and cross-border transactions; targets approximately $25–750M revenue.Alpina Equity LLC	Middle market
Edgewater Capital Partners	Says more than half of its acquisitions have been corporate carve-outs; particularly focused on specialized industrial/technical businesses.Edgewater Capital Partners	Lower-middle market

Who I'd prioritize

If you tell me the division's annual revenue, EBITDA, industry, geography, and whether it's a standalone subsidiary or deeply integrated into the parent, I can narrow this to perhaps 10–15 highly plausible buyers rather than giving you a generic PE list.

The distinction is important. For example, if you're selling a $200M revenue industrial division with $30M EBITDA, I'd approach the market very differently than a $40M revenue software division with $8M EBITDA.

I can also build you a carve-out buyer universe organized into:

• Best-fit PE firms
• Likely strategic buyers
• Firms known for fast/clean closings
• Firms comfortable with TSAs and complex separations
• Approximate enterprise-value ranges
• Relevant recent carve-out transactions

That would be a much more useful starting point for a sale process.

Who I'd prioritize

If you tell me the division's annual revenue, EBITDA, industry, geography, and whether it's a standalone subsidiary or deeply integrated into the parent, I can narrow this to perhaps 10–15 highly plausible buyers rather than giving you a generic PE list.

The distinction is important. For example, if you're selling a $200M revenue industrial division with $30M EBITDA, I'd approach the market very differently than a $40M revenue software division with $8M EBITDA.

I can also build you a carve-out buyer universe organized into:

Corporate carve-outs require a very specific type of private equity buyer. Unlike a standard acquisition where an entire independent company is bought, a carve-out means untangling financials, separating shared IT/HR infrastructure, establishing standalone vendor contracts, and managing Transition Services Agreements (TSAs).

Major private equity firms with dedicated operational playbooks and long histories of executing complex corporate carve-outs include:

• KKR (Kohlberg Kravis Roberts) : Frequently targets corporate carve-outs, viewing them as a core strategy to acquire strong business units that were previously peripheral or under-resourced within larger conglomerates. They utilize dedicated operational teams (like KKR Capstone) to stand up independent infrastructure quickly.kkr.com+2
• The Carlyle Group : Has a multi-decade track record of executing massive global corporate divestitures and carve-outs from major multi-industry corporations (such as carving out industrial and tech-adjacent divisions from sprawling parent companies).rockwoodequity.com+1
• Clayton, Dubilier & Rice (CD&R) : Highly regarded for heavy operational, industrial, and healthcare carve-outs. They are known for deep analytical rigor and specialized execution on complex, multi-billion-dollar corporate divestitures.
• Bain Capital : Possesses extensive experience carving out specialized business units (such as industrial, chemical, or tech components) where strategic priorities of the parent company shifted away from a great underlying asset.
• Accel-KKR : If your division is in the lower-middle to middle-market software or tech-enabled services space, Accel-KKR explicitly targets divisional carve-outs, spin-outs, and going-private transactions alongside organic and inorganic growth strategies.
• Rockwood Equity Partners : If your division is on the smaller side (lower-middle market), boutique and mid-market specialists like Rockwood focus heavily on opportunistic corporate divestitures and non-core asset carve-outs designed to minimize drawn-out TSAs and complicated due diligence.rockwoodequity.com+1

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

• The industry or sector of the division (tech, industrials, healthcare, etc.)
• The approximate revenue or size of the carving
• Whether it requires a complex Transition Services Agreement (TSA) or is mostly operationally independent already

Yes. Corporate carve-outs are a distinct PE niche, because the buyer has to separate a division from its parent—often dealing with shared employees, IT systems, facilities, IP, contracts, pensions, supply chains, and transition-services agreements (TSAs).

If you're selling a division of a larger company, I'd put these firms near the top of the initial buyer universe:

Particularly relevant carve-out specialists

• lionequity.com — Probably one of the most directly aligned firms. It explicitly focuses on acquiring divisions of larger corporations and says it has extensive experience with the divestiture process. Its stated target is roughly $30–300M revenue and up to $25M EBITDA.Lion Equity
• shackletonequity.com — A lower-middle-market specialist explicitly focused on corporate carve-outs, non-core divestitures and special situations. Particularly interesting for industrial, manufacturing, technology, aerospace/defense, telecom and consumer businesses.Shackleton Equity Partners+1
• rockwoodequity.com — Very carve-out oriented, particularly for smaller businesses. It targets approximately $2–7M EBITDA, with a strong focus on industrials, specialized B2B, aerospace/defense, healthcare and environmental businesses.Rockwood Equity+1
• alpinaequity.com — Explicitly targets corporate carve-outs, including both deeply integrated divisions and standalone units, with stated revenue targets of $25–750M.Alpina Equity LLC
• roslincapital.com — A specialist investor built around corporate carve-outs and complex separations, emphasizing operational independence, TSA management and ERP/organizational separation.Roslin Capital
• inspiritcap.com — Especially relevant if the business is UK/Ireland-based. It primarily invests in operating divisions being divested by large corporations and targets enterprise values up to about £200M.Inspirit Capital

Larger PE firms worth including

Don't restrict the process to carve-out boutiques. Larger sponsors can be excellent buyers when the division is substantial:

• adventinternational.com — Has a substantial track record of complex multinational carve-outs, including the very large TK Elevator transaction.Advent International+1
• EQT — A large global sponsor with the capital and operational resources to execute sizable corporate separations.
• Apollo Global Management — Particularly worth considering for complex, large-scale or special-situation divestitures.
• Clayton, Dubilier & Rice (CD&R) — Particularly relevant for industrial, business services and operational-transformation situations.
• Platinum Equity — One of the more natural large-cap candidates for corporate divestitures because of its long history of acquiring businesses from larger corporate parents and executing operational separations.

The important part: matching the buyer to your carve-out

The best PE firm depends heavily on four numbers:

1. Revenue of the division
2. EBITDA / EBITDA margin
3. Likely enterprise value
4. Industry

And there are several other factors that dramatically affect the buyer universe: whether the division has standalone financials, how dependent it is on the parent for IT/HR/finance/sales, how long a TSA would be required, whether the parent will retain a stake, and whether you're willing to sell to a strategic buyer as well.

For example, a $10M EBITDA industrial division heavily dependent on the parent should be marketed very differently from a $50M EBITDA software division that is already operationally standalone.

If you give me (a) industry, (b) approximate revenue, (c) EBITDA, (d) U.S./Europe/etc., and (e) how integrated the division is with the parent, I can build you a target list of ~15–30 PE firms, ranked by fit, including which ones have actually executed similar carve-outs and why each is a plausible buyer.

When selling a corporate division via a carve-out, you need private equity (PE) buyers who are comfortable with the operational complexity of separating shared IT systems, disentangling HR/payroll, establishing standalone management teams, and negotiating Transition Services Agreements (TSAs).

While many large generalist firms will look at carve-outs if the check size is right, several firms explicitly feature corporate carve-outs, divestitures, and "special situations" as a core pillar of their investment strategy.

1. Large-Cap / Global Specialists

These mega-funds have dedicated operational separation teams and deep pockets to handle massive, multi-billion-dollar industrial or tech conglomerates:

• The Carlyle Group: One of the most prolific practitioners of industrial and conglomerate carve-outs globally, having deployed over $13 billion into carving out non-core units from major parents (like DuPont and Baxter).
• KKR (Kohlberg Kravis Roberts): Frequently targets large corporate divisions that have become a "peripheral focus" in a parent company's broader structure, converting them into thriving standalone enterprises.kkr.com+1
• Bain Capital: Has a long historical track record of large industrial and tech carve-outs (such as Sensata Technologies from Texas Instruments).

2. Middle-Market & Lower-Middle-Market Specialists

If your division falls into the mid-market size range (lower EBITDA or enterprise value), specialized firms focus explicitly on making the separation process seamless and fast:

• Sentinel Capital Partners: Focuses heavily on the lower-middle market and explicitly targets corporate divestitures, operational turnarounds, and management buyouts.
• Wellspring Capital Management: A mid-market specialist that specifically calls out the acquisition of divisions and subsidiaries from public companies as a core competency.
• Rockwood Equity Partners: Specializes in lower-middle-market corporate divestitures and non-core asset carve-outs, explicitly aiming to minimize cumbersome TSAs and lengthy due diligence for the seller.
• Shackleton Equity Partners: An operationally focused firm that exclusively targets lower-middle-market corporate carve-outs and special situations, including healthy or underperforming corporate units.rockwoodequity.com+2

What to Look for in a Carve-Out Buyer:

• Dedicated Operations Group: Ask if they have an in-house or external transition team (e.g., operating partners) who handle Day-1 readiness so your internal team isn’t bogged down.
• TSA Capability: Find out how flexible they are regarding Transition Services Agreements. Some PE firms specialize in short, clean cutovers, while others expect extensive parent-company support.
• Certainty to Close: Carve-outs fail or drag on late in the process due to regulatory or separation risks. Look for a firm with a proven track record of actually crossing the finish line on divestitures.

If you'd like to narrow this down, please share:

• The estimated revenue or EBITDA of the division
• The industry (e.g., tech, manufacturing, healthcare, business services)
• Whether the division is fully standalone or heavily shares resources (IT, HR, supply chain) with the parent company

I can tailor this list to firms that specifically target your size and sector.

Yes. Corporate carve-outs are a distinct PE niche, because buying a division of a larger company often requires the buyer to disentangle shared IT, HR, finance, facilities, contracts, IP, employees, and supply chains—and frequently operate under a transition-services agreement (TSA) after closing.

A good starting shortlist, based on firms that explicitly identify carve-outs as an investment focus, is:

Firm	Why it stands out	Typical fit
Lion Equity Partners	Explicitly focused on acquiring divisions of larger corporations; describes itself as “built for corporate carve-outs.”	Lower-middle market; roughly $30–300M revenue
Trive Capital	Actively seeks carve-outs and has completed numerous corporate-divestiture transactions.	Middle market; $25–200M equity capital
Shackleton Equity Partners	Specifically specializes in corporate carve-outs, non-core divestitures and special situations.	Lower-middle market
CoBe Capital	Says it is “custom built for corporate carve outs,” with a history of buying divisions from large global corporations.	Smaller carve-outs; EV generally up to ~$100M
Morgan Stanley Capital Partners	Corporate carve-outs are explicitly among its control-investment strategies.	Larger middle market; roughly $200–800M EV
Apax Partners	Has a dedicated perspective and substantial experience around complex corporate carve-outs.	Larger transactions / technology and services especially

For example, Trive says it has completed carve-outs from companies including Windstream, Triumph Group, Chesapeake Energy and Flex, and is specifically seeking additional carve-out opportunities. Trive Capital Lion is even more specialized: it says its strategy is centered on acquiring divisions of larger corporations and has significant experience with the divestiture process. Lion Equity Shackleton likewise explicitly specializes in corporate carve-outs and non-core divestitures.Shackleton Equity+1

The important distinction

I wouldn't limit your buyer list to firms that advertise themselves as carve-out specialists. There are also large generalist PE firms that will compete aggressively for the right carve-out—particularly if the division has attractive EBITDA, strong management, and a credible path to standalone operations.

For a seller, I'd divide potential buyers into three groups:

1. Carve-out specialists — often particularly good at complicated separations and can move quickly.
2. Sector-specialist PE firms — potentially willing to pay more because they understand your industry's economics.
3. Large generalist PE firms — useful for creating competitive tension, particularly for a sizable, high-quality division.

The buyer's ability to handle the separation mechanics matters enormously. A seemingly attractive bid can become less attractive if the buyer can't quickly establish standalone IT, accounting, procurement, HR, sales operations, etc.

You will also want to prepare carve-out financial statements, a detailed separation perimeter, TSA requirements, stranded-cost analysis, and a standalone business plan before going broadly to market. Advisory firms such as PwC, Deloitte, EY and KPMG specifically have practices built around these issues.PwC+3

If you tell me the division's approximate revenue/EBITDA, industry, geography, and whether it's profitable, I can give you a much more targeted list of ~15–25 PE firms that would be credible buyers—and rank them by fit.