Willow Creek Partners reflects on a transformative year marked by portfolio diversification and strategic growth. The firm expanded beyond its multifamily real estate roots into operating businesses across multiple sectors, adding five new companies to its portfolio in 2025 alone.
Portfolio Expansion
The firm acquired CMG (construction management), integrated ICS into The One23 Group, welcomed ACI and Reztark Design to its Fusion AE platform, and invested in Merge, a tech-enabled business brokerage. These moves strengthened scale, resilience, and geographic reach.
Demographic Tailwinds
Demographics are persistent in driving M&A activity. Baby Boomer business owners retiring represent a structural tailwind surpassing cyclical market forces, creating sustained deal opportunities in the sub-$10 million EBITDA segment despite deferred transaction supply.
Partnership Philosophy
Rather than replacing founding teams, the firm pursues long-term collaborations where management remains actively involved for several years after the transaction, positioning founders' second chapter as intertwined with investor success.
Real Estate Perspective
While acknowledging cyclical multifamily headwinds from recent interest rate increases, the firm maintains constructive long-term views, recognizing that cycles ultimately resolve as new supply moderates and demand fundamentals reassert.