Centre Street Partners

Centre Street Partners Research Document Investment Thesis Centre Street Partners is a New York-based investment firm founded in 2022 by managing partners Abie J. Cohen and Jonathan Kerstein. The firm operates at the intersection of technology and lower-middle market private equity, pioneering what they describe as an "anchored ETA" (Estimated Time to Acquisition) model that blends venture capital and buyout strategies. Centre Street's core thesis centers on artificial intelligence as a transformational technology. However, rather than focusing exclusively on pure-play technology providers, they believe the largest share of economic value from AI will be captured at the ownership layer of services providers. This insight drives their strategy of partnering with technical operators and U.S. small-to-mid-market (SMB) owners to execute technology-led middle-market buyouts. Their positioning emphasizes creating "category-leading service businesses" by combining capital, technical talent, and technology-enabled operating leverage to help small businesses grow into enduring platforms. Investment Strategy & Approach Unique Model: "Anchored ETA" blending VC with lower-middle market buyouts Target outcomes: $300M-$700M exits (positioning between traditional VC and large buyouts) Targets SMB owners seeking capital and operational partnerships Partners with world-class technical operators for value creation Focus on technology-led transformation rather than financial engineering Stage Focus: Blend of early-stage investments and control-oriented buyouts Early-stage: Seed and Series A technology companies (pure venture) Buyout: Lower-middle market services businesses ripe for technology transformation Hybrid approach: Sometimes leads pure venture rounds, often partners with other VCs Check Size & AUM Fund: Currently investing out of CSP Fund II Investment Size: Ranges from $5M-$50M+ depending on opportunity (venture vs. buyout hybrid model) Portfolio: 24+ companies in Fund I, with active deployment continuing Lead Tendency Centre Street leads the majority of their investments but maintains flexibility to co-lead or follow based on opportunity fit. Their hybrid model allows them to be flexible lead investors in early-stage tech rounds or lead acquirers in buyout situations. Recent Activity (2025-2026) Latest Investments: VATN Systems: $60M Series A lead (December 2025) - attributable, coordinated AUV swarms for naval defense OffDeal: $12M Series A co-investor (July 2025) - AI-enabled full-stack M&A advisory Stackpack: Series round with Team8, Verissimo Ventures co-investors (May 2025) Multiple undisclosed portfolio companies in active deployment Fund Status: Actively deploying CSP Fund II with strong momentum in late 2025 and early 2026 Team Founding Partners: Abie J. Cohen - Managing Partner Jonathan Kerstein - Managing Partner Operating Team: Rachel Snyder - Head of Platform & Operations (leads operational support for portfolio) Julian Gutman - Operating Partner (sector expertise and board presence) Firm Characteristics: Small, focused team with deep technical and operational expertise. Team members leverage extensive networks to support portfolio companies and identify acquisition targets. Portfolio & Sector Focus Portfolio Size: 24+ active companies in Fund I covering multiple sectors Sector Concentrations: AI Applications & Infrastructure: Arcee AI (developer infrastructure with domain-specific LLMs) Celery (AI agents for financial operations) Pelles AI (preconstruction systems design powered by AI) Jericho Security (AI-native communications security) Raylu (AI-enabled due diligence and deal management) Wayside (AI agents for HR and people operations) Sublime (modern search engine and knowledge capture) Robotics & Automation: UCR (intelligent, rugged humanoids for hazardous labor) Olden Labs (software and robotics for animal research operations) 10Beauty (robotics for automated nail care) Solideon (autonomous deployable factories for advanced manufacturing) Defense & Government Technology: Bridge Defense (government and defense-focused systems integration) VATN Systems (coordinated AUV swarms for naval defense) Financial & B2B Operations: NetNow (trade credit and B2B payments automation) OffDeal (AI-enabled M&A advisory) Kontango (workflow automation for commodities and chemicals) Draftboard (network-driven sales enablement) Professional Services & Operations: Polytrial (clinical trial operations design) Weathermind (technology-enabled claims management for P&C insurance) Accrue (embedded, branded wallets for ecommerce and loyalty) Other: Bounce (social event and community operating system) The Free Press (new media built on American journalism principles) Scream Truck (on-demand mobile food truck franchise) Electryone (energy asset and battery optimization powered by AI) Geographic Focus Primary: United States, with emphasis on lower-middle market ($10M-$100M revenue range) Secondary: Selective international opportunities, particularly in defense and manufacturing Operational Coverage: National reach with NYC headquarters for deal sourcing and management Decision Process & Timeline Process: Partnership-driven with board seat involvement Timeline: Moderate pace typical of middle-market buyouts combined with VC flexibility Due Diligence: Comprehensive operational and technical due diligence Value Creation: Post-investment operational partnerships with CEO and management team Founder & Owner Preferences Centre Street seeks: Technical operators with deep domain expertise and proven execution U.S. SMB owners seeking growth capital and operational partnership Early-stage founders building AI-powered solutions Management teams open to technology transformation and modern operating practices Business owners/founders ambitious about scaling through technology, not just financial optimization Competitive Positioning Centre Street differentiates through: Hybrid Model: Bridges gap between traditional VC and buyout PE, targeting $300M-$700M outcomes AI Focus: Deep conviction in AI's transformational impact across all portfolio companies Operating Expertise: Hands-on technical and operational support beyond capital Flexible Approach: Willing to lead, co-lead, or follow based on opportunity fit Services Sector Focus: Specific thesis on value capture in services layer of AI economy Fund Evolution Founded: 2022 by Cohen and Kerstein Fund I: 24+ portfolio companies, mostly seed/Series A tech companies Fund II: Currently active deployment with hybrid buyout/VC model Strategy Evolution: Shifting from pure VC to blended "anchored ETA" model for lower-middle market returns