LogicSource Launches Private Equity Vertical to Drive Profitability Across Investment Portfolios

Managing Partner Tom Stolarski appointed to lead practice with the mission to help clients unlock cost savings, accelerate EBITDA improvement and strengthen valuations

WESTPORT, CT, December 12, 2023 – LogicSource, the leading provider of procurement services and technology solutions, today announced that it has launched a new vertical dedicated to helping private equity firms maximize value within their portfolio companies by accelerating EBITDA enhancement. LogicSource will leverage its proven assets to identify impactful ways for firms to reduce indirect expenditures, which is critical for portfolio companies across all stages of investment. Tom Stolarski, Managing Partner, will lead the private equity vertical for LogicSource.

“In today’s environment, if a company is fortunate to be backed by a private equity sponsor, there is constant and intense pressure on its operations and financial performance,” said David Pennino, founder and CEO at LogicSource. “One of the most overlooked areas for financial improvement is indirect spending, which can consume up to twenty percent of a company’s revenue. It’s a critical piece of the business that can have meaningful impact on the bottom line, yet is often under-resourced and not prioritized. Our private equity solutions provide an unmatched ability to swiftly unlock value through cost savings and position the business favorably to invest in future growth.”

LogicSource partners at both the private equity and portfolio company-level to rapidly drive operational efficiencies and profit improvement. Leveraging its proven and pre-built assets, LogicSource executes custom procurement solutions addressing a variety of portfolio company challenges, driving measurable and sustainable cost savings and EBITDA growth. For private equity operating partners, LogicSource serves as a strategic procurement utility, driving synergies across portfolio companies, bridging operational resource gaps, and implementing comprehensive savings initiatives that positively impact the overall portfolio.

“With over $100 billion in spend data, LogicSource’s procurement insights and expertise can be a real competitive advantage for every private equity firm working to improve the operations of their portfolio companies,” said Brad Bernstein, Managing Partner at FTV Capital.

“In the current economic environment, it is absolutely critical to have deep procurement expertise to manage inflationary pressures and optimize margins at companies across all industries.”

When conducting due diligence on a potential investment, LogicSource provides private equity firms with actionable insights that give them a competitive edge over their peers by identifying areas where they can immediately unlock cost savings upon the close of deal. Similarly, when positioning a portfolio company for an exit, LogicSource works with its private equity clients to identify and execute rapid cost savings initiatives to ensure the company is presented to the market in its strongest position possible.

“Private equity and finance leaders are facing uncertainty in the year ahead and it is more critical than ever that every dollar spent be reviewed, both to unlock value in prospective investments and to best position an asset in uncertain times,” said Tom Stolarski, Managing Partner at LogicSource. “We have been serving private equity firms since our inception and are pleased to formalize our offering to bring our insights and execution-based approach to the sector.”

Mr. Stolarski recently rejoined LogicSource to head the private equity vertical after being with the company from 2014 to 2020. During his previous chapter with the company, Mr. Stolarski worked in Business Development before transitioning to Strategy and Planning. He most recently co-founded a SaaS and payments company in the mobility sector, where he helped lead fundraising, successfully raising a formal seed round. As a result, he understands firsthand the due diligence both portfolio companies and investment funds must undertake during the deal process to find success from both sides.