How We Built a $1B platform across 4 funds | Greg Warnock, Mercato Partners

Mercato Partners maintains a disciplined growth equity strategy by targeting capital-efficient companies in the interior of the country, avoiding the "upmarket" drift common as funds grow. Co-founder Greg Warnock explains that the firm’s success relies on consistent check sizes and a focus on businesses with proven revenue momentum rather than speculative ventures. While the firm remains committed to traditional software investments, it now employs a 15-point screening tool to evaluate AI-native applications, specifically favoring those that integrate with physical assets to create defensible moats. Warnock emphasizes that emerging managers should prioritize understanding investor needs over personal missions, advocating for a "minimum viable" approach to fundraising that allows for early deal deployment to build credibility. This stewardship-focused model, established alongside co-founder Alan Hall, continues to guide the firm’s transition toward future leadership.