Heartwood Partners built its pitch around an unfashionable idea in buyouts: use less debt, leave managers with meaningful ownership, and give operating teams room to grow. In a market trained to chase leverage, restraint has become the product.
For 42 years the Chicago firm has run the buyout playbook in reverse - recruiting a billion-dollar operator before it writes a check. In July it closed a $3.2 billion fund to keep doing it.