Doing Private Equity Differently

By Brian Cox

Private equity has long had a reputation that makes many entrepreneurs wary. Too often, selling your business to a PE firm is seen as the end of a journey rather than the start of a new chapter. Founders get bombarded with calls from brokers offering low multiples, only to be followed by firms who step in, slash costs, and strip the soul from the company in the name of ROI. For business owners who spent decades building their team, customers, and brand, this is a complete nightmare.

At Traction Capital, we believe there’s a better way.

We’re Entrepreneurs, Just Like You

We’re not outsiders looking to impose a quick-fix agenda. We’re entrepreneurs ourselves. We’ve built businesses from scratch, and some of us have personally had Private Equity sale regrets. We know what it feels like to wear every hat, have employees that feel like family, and to stay up late at night wondering what’s next.

Those experiences shape how we operate. When we partner with a company, whether through minority ownership investment or majority ownership acquisition, we approach it with the same level of care and commitment as our own business.

House Flipper vs. Homeowner: A Better Metaphor for PE

A metaphor we’ve seen regarding PE is that too many firms act like house flippers. Focused on cosmetic improvements, quick ROI, and rapid turnover.

We prefer to be homeowners.

We invest in the foundation, plan for the future, and think about how to make the business sustainable and thriving. Not just for a future sale, but for the team, the customers, and the legacy that’s already been built.

Top-Line Growth, Not Just Bottom-Line Cuts

One of the biggest differences in our approach? We don’t just look for ways to cut costs, we look for ways to grow.

Our focus is on unlocking top-line growth through sales and marketing strategies that expand market reach and drive revenue, making smart leadership transitions when founders are ready to exit or scale back. And leveraging our vast entrepreneurial network to bring fresh insights, strategic partnerships and their experience to the table.

Sometimes there are expenses that can easily be cut, but often times a fresh perspective adds so much additional value.

Investing in People and Process

We’re especially drawn to companies with an existing leadership team in place. Our role is to support that team—not replace it. If the team is ready for growth, we help them scale. If there are gaps, we help fill them. But our intent is always to preserve the heart of the company—the people.

We also believe in aligning the team around a shared language and process. That’s why we help our companies run on EOS (Entrepreneurial Operating System). It creates a culture where the entire team—not just senior leadership—can participate in solving challenges, spotting opportunities, and driving meaningful progress.

What Makes a Traction Capital Partnership Different?

At Traction Capital, we respect the past and the founder’s journey. We build for the future, not just a financial exit. We co-create the path forward, aligning with the team on vision, values, and execution.

What It’s Like to Work With Us: A Founder’s Words

“I really want to call out the promise you’ve kept to the ethos of your fund for bringing other entrepreneurs up. You’ve given me resources, yes, but what really matters to me is that you believe in me. You’ve been here for me. You’ve supported my vision. You’ve challenged me. You’ve seen the best in me and what I can do in the worst of situations. You’ve been a true partner and an advocate who sees not just what I am, but what I can become. The belief in me from someone I respect, their loyalty, and relentless encouragement—that’s what I thrive off of.” – TC Portfolio Founder

Building Businesses, Not Just Portfolios

Our mission isn’t just to churn through investments. Its helping entrepreneurs get what they want for the greater good. We help businesses reach their full potential, with the founders’ legacy intact and their people thriving.

Private equity doesn’t have to be a cold transaction. At Traction Capital, we’re proving it can be personal and purposeful.

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Scott litman

strategic growth partner

Scott Litman is a serial entrepreneur, advisor, and investor who brings decades of hands-on startup and growth experience to Traction Capital. With five successful company exits and a long list of accolades, he’s a driving force behind innovation and scale in Minnesota’s business community.

As a Strategic Growth Partner, Scott has an immense level of experience in entrepreneurship that he brings to Traction Capital.  He has gone from startup, funding, growth and exit five times (Imaginet Inc, Spot Buy Spot, Imaginet LLC, Magnet 360 & Lucy). In that time, he has received a number of honors & awards including E&Y Entrepreneur of the Year, Business Journal Titan of Technology, University of Minnesota Outstanding Achievement, Smart Business Dealmakers Hall of Fame, Twin Cities Business 100 People to Know / Watch (3 times), Minnesota Business The (Real) Power 50 and Business Journal 40 Under 40. Along the way, Scott has experienced being #1 in The Business Journals Fast 50, made the Inc 500 and has worked with over 25% of the Fortune 500.

Scott founded the Minnesota Cup, the largest state wide business plan competition in the US and has been on the Board of Advocates for Backpack, a student run marketing and communications agency out of the University of Minnesota.

Scott has served on the BOD, Advisory Board or been advisor to a number of startups that have had tremendous success including Enstratus (acquired by Dell), InStereo (acquired by Salesloft), HealthSimple (acquired by J&J), Hollywood Fashion Secrets (acquired by American International Industries), I See Me (acquired by The McEvoy Group) and more.