Where Institutional Rigor Meets Intelligent Automation
Token Capital Group acquires lower middle market businesses with enduring demand and helps their teams put AI to work.
CONTACT USAn Independent Sponsor Built on Institutional Experience
Token Capital Group is an AI-native, thesis-driven independent sponsor. We acquire lower middle market businesses with enduring demand and operations that intelligent automation can measurably improve.
Our founder has spent more than 19 years in institutional private equity and private credit, structuring, negotiating, and closing transactions across the lower middle market. Token Capital Group runs its own sourcing, diligence, and underwriting on AI systems the firm built, and brings the same practice to the companies it acquires, starting on Day One.
We enter each acquisition with a written, sequenced plan for where automation will improve the business and how the existing team will take part. We deploy AI to make the existing team more capable, not to shrink it: better tools, better data, and less time on repetitive administrative work. As the business becomes more valuable, the team that helped build that value participates in it.
Three Pillars of Value Creation
How we select, buy, and operate the businesses we acquire.
The Intersection Thesis
We target businesses where enduring demand protects the floor and intelligent automation raises the ceiling. Customers buy these products and services out of necessity, and much of the operation still runs on manual work: quoting, production and dispatch scheduling, order management, and invoicing. We underwrite margin and throughput improvements that do not depend on market growth.
Built to Close
Sellers and intermediaries need to know a buyer can close. We engage diligence providers and legal counsel early, and we raise equity and debt from established institutional capital partners in parallel with confirmatory diligence. Each transaction is structured to align the seller, the business, and our capital partners.
AI-Native Operations, Owned by the Team
The team that runs the business also runs its AI tools. Operating partners with relevant industry experience work alongside them to put the plan into practice. We train the team, give them a say in what gets built, and measure the results with them, so the capability belongs to the company and the upside belongs in part to the people who created it.
Most of the lower middle market businesses we review still run quoting, scheduling, and invoicing by hand, and few have written down how that work is done. Documenting it is where the operating improvement we underwrite begins.
What We Look For
We target essential businesses where the physical world requires physical products, physical movement, and physical work, where operations are still largely manual, and where AI can measurably improve how the company runs.
Enduring Demand
Customers buy these products and services because they need them, and demand has held up through economic cycles. The core work is physical, so a purely digital offering rarely replaces it.
AI Value Creation Opportunity
For each business, we name the specific AI improvements it supports, size each one from the bottom up, and sequence them into a plan the existing team can carry out with our help.
Operational Complexity as a Barrier to Entry
Operations complex enough to deter new competitors, which an experienced owner with the right systems can run more efficiently.
Aligned Sellers
Founders and families who want a buyer that will look after their employees, customers, and reputation after the sale.
SECTOR FOCUS
Let's Connect
We welcome conversations with business owners considering a sale, intermediaries representing sellers, capital partners, and prospective operating partners.
CONTACT USConsidering a transition?
Representing a seller?
Interested in co-investing?
Interested in an operating role?