Halmos Capital Partners is a boutique private investment firm based in Florida that strives to generate attractive returns through opportunistic situations with an operational focus. Pulse 2.0 interviewed Halmos Capital founder and partner Andrew Cohan to learn more about the firm.
Andrew Cohan’s Background
What is Andrew Cohan’s background? Cohan said:
“I studied biochemistry at the University of Virginia and started my career in healthcare investment banking. From there, I covered biotech and pharma companies at firms like Goldman Sachs and Perry Capital, on both the sell-side and buy-side. Over time, I became more interested in the private markets and wanted to be closer to the companies themselves. That eventually led me to start Halmos, where we focus on investing in privately held businesses in the lower middle market.”
Evolution Of Halmos’ Thesis
How has your firm’s thesis evolved over time? Cohan noted:
“The main progression has been a steady march towards taking a hands-on approach to driving value. When we started out, we were open to a variety of transaction structures including non-control equity. What we found over time is the more involved we became in the businesses, the better we were able to control the outcome for investors. Eventually we bought a wastewater transport and disposal business in Oklahoma, and I moved out there to run it as CEO for a little over two years. That experience was eye-opening. Being on the ground and managing a real operating business really changed the way I thought about value creation. Since then, we’ve decided to only focus on control buyouts of founder- and family-owned businesses, where we can roll up our sleeves and work directly with management to enhance the business post-close.”
Favorite Memory
What has been your favorite memory of working for your firm so far? Cohan reflected:
“There are a few. Starting Halmos from scratch and taking something from a vision to a substantial investment company has been incredibly fulfilling. The experience running the Oklahoma business was another pivotal experience in that it was humbling and taught me a lot about what operators go through day to day. You don’t fully appreciate what it takes to run a company with hundreds of employees and heavy equipment until you’re in it. We also had to navigate some serious ups and downs, including a stretch of hypergrowth followed by the challenges of COVID. And now we’re in a new phase at Halmos where we are more focused and dialed in on a very specific strategy where we are deploying our playbook on a repeated basis across various companies. “
Significant Milestones
What have been some of your firm’s most significant milestones? Cohan cited:
“Certainly starting Halmos and making our first few investments was a major milestone, and I think any entrepreneur remembers their first real traction vividly. Buying the wastewater company in Oklahoma and spending several years growing it was a pivotal experience. Our investment in Thermal Concepts was a turning point in that it kicked off a series of investments in building and facilities services, which included NorthPoint Roofing Systems and Vasco. Also, every time we add a key member to our investment management company it represents a major milestone in our growth as each team member plays a pivotal role in what we do.”
Metrics About Halmos
Can you discuss any relevant metrics? Cohan pointed out:
“Our focus is on investing in lower middle-market businesses, typically with revenues between $10 million and $100 million and EBITDA ranging from $5 million to $30 million. Our approach is hands-on in that we actively partner with founder- and family-owned businesses to drive operational improvements and strategic growth.”
Industry Focus
What are some of the industries that your firm is focused on? Cohan noted:
“We focus on a variety of business models, particularly a mix of industrial and business services companies. What matters most to us isn’t the specific sector, but rather the quality of the business. We’re looking for founder- and family-owned companies in strong, durable industries that are going to be around long after our investment period ends. And we want to see a few clear levers we can pull to help create value during our holding period. Lately, we’ve spent a lot of time in the building services space, including commercial HVAC, residential re-roofing, and sports surfacing. These are essential, steady industries where we feel we can bring real operational value.”
Differentiation From Other Firms
What differentiates your firm from other firms? Cohan emphasized:
“I think what really sets us apart is the combination of investment and operating experience we bring to the table. My partner Dan and I have worked across several strategies throughout our careers, including public equity, credit, special situations, private equity, and real estate. That breadth provides us with a number of ways to look at investments.”
“From an operating perspective, we’ve built an investment firm from the ground up, and we’ve also rolled up our sleeves and run real operating businesses. We’ve managed trucking and industrial infrastructure operations serving the energy sector and even launched a de novo midstream company to build a pipeline to serve our industrial waste customers.”
“That kind of experience helps us relate to the people we’re partnering with. We know what it’s like to be in their shoes trying to make payroll, solve problems on the fly, and grow something meaningful. And I think that shared understanding goes a long way in building trust. In an ideal world, every private equity investor would get some experience operating a business for a period of time.”
Challenges Faced
What are some of the challenges you faced while working at the firm? Cohan acknowledged:
“Most of the challenges we face come from inside the portfolio companies, and that’s to be expected as part of the job. In the lower middle market, businesses tend to be more exposed to shocks, whether it’s something at the macro level or a market-specific issue. Our role is to help navigate those moments.”
“When COVID hit and commodity prices dropped overnight, demand for our wastewater disposal business fell off quickly. We had some leverage on the balance sheet, so we moved fast to cut costs, remain cash flow positive through 2020, and sell non-core assets to quickly de-lever. In our roofing business, one of the larger markets we serve relies in part on weather events to drive demand. The first couple of years post acquisition were unusually quiet, so we adjusted the cost structure and brought in a new VP of Sales. He helped elevate the existing team and built out a new program focused on roof replacements based on age, not just storm damage.”
“In this part of the market, it’s critical to spot challenges early, stay calm, and have the creativity and tools to respond. You have to expect the unexpected, and oftentimes the same playbook we use to create value can also help us get through the tougher stretches.”
Future Firm Goals
What are some of your firm’s future goals? Cohan explained:
“At this point, we’re clear on who we are and what we’re focused on and that is buying lower middle-market, founder- and family-owned businesses where we can work side by side with management to add value. Our goal is to stay laser-focused on that and keep getting better at it with every deal.”
“It’s a strategy that isn’t going anywhere. If you take it seriously, work hard, and treat people the right way, there’s a real opportunity to generate strong returns and build great businesses along the way.”
Additional Thoughts
Any other topics you would like to discuss? Cohan concluded:
“Something that’s very important to us, and often overlooked, is how personal it is for founders and families to sell a business. For many of the owners we work with, it’s something they’ve built over decades. It’s not just a transaction; it’s a major life decision and one that they likely only make once in their lifetime. We take a lot of pride in being the kind of partner who respects that and shows up with empathy, transparency, and a long-term mindset. That approach has shaped our best relationships, and we think it’s a big part of why this work is so meaningful.”
