Ed Lhee, the innovative Co-Founder of New Harbor Capital, plays a pivotal role in shaping the futures of ambitious entrepreneurs through the strategic use of lower-middle market private equity. His passion for empowering small business owners to achieve and exceed their aspirations is deeply rooted in his own life's narrative, illustrating his belief in the potential of dedicated individuals when given the right opportunities.

The Early Years

Ed's story begins in Seoul, South Korea, where he was born and spent his early childhood. At seven, he left his birthplace to join his parents in the United States, who had moved earlier in search of better opportunities. Before his departure, Ed lived with various members of his extended family in Seoul—grandparents, aunts, and uncles—giving him a rich childhood with the influence of a broad family network while separated from his immediate family. This early experience of living in multiple family settings taught him valuable lessons in adaptability and the importance of maintaining strong interpersonal relationships.

Upon arriving in the U.S., Ed's new life began in Chicago, where he first experienced the American culture and its challenges. His family later moved to the northern suburbs, where he attended New Trier High School. Here, Ed became actively involved in team sports, including basketball and baseball, which were instrumental in teaching him the importance of teamwork and collaborative success. He learned firsthand how a group's dynamic and culture could significantly affect its performance, insights that would later influence his professional philosophy.

Ed pursued higher education at the prestigious University of Pennsylvania, where he was enrolled in the Wharton School of Business and the College of Arts and Sciences. His academic journey was marked by a dual focus on finance and psychology, with a special emphasis on microeconomics and human behavior. This unique combination of studies gave Ed a comprehensive understanding of the numbers that drive businesses and the people behind those numbers. His education was instrumental in developing his ability to effectively engage with and understand various stakeholders, a skill that has become a cornerstone of his professional interactions.

Professional Pathway

After completing his undergraduate studies, Ed embarked on a career in finance, starting with a significant stint at Morgan Stanley in their M&A and Corporate Finance Groups. During this formative period, he was exposed to the complexities of high-level finance and investment strategies, sharpening his analytical skills and gaining invaluable insights into the workings of large and small businesses. His ambition and drive led him to further his education at the Kellogg School of Management at Northwestern University, where he earned his MBA in 1997, refining his technical and strategic skills.

Private Equity Career

Despite receiving lucrative investment banking and consulting offers, Ed followed his passion for private equity. He believed this field offered the best platform to substantially impact businesses and their leaders. His search for the right opportunity culminated in a position at Code Hennessy & Simmons in Chicago, where he further developed his investing prowess and cultivated a deep respect for business leaders and their challenges. His focus during this period was intense, driven by a clear goal vision.

In 2013, Ed's entrepreneurial spirit and commitment to fostering business growth led him to co-found New Harbor Capital. His firm is dedicated to partnering with entrepreneurs to help accelerate the development of their ventures, ensuring that the essence of what made these businesses successful is preserved in the process. Leadership and a clear strategic focus are the backbones of his approach to private equity.

Philosophy of Compassionate Capitalism

Central to Ed's approach is his strong belief in compassionate capitalism. This philosophy contends that financial gains and social progress are compatible and mutually reinforcing. Ed is particularly drawn to investments that consider the human aspect of business, such as health and wellness ventures that align with his ideology. His perspective on capitalism challenges traditional views by emphasizing business dealings' personal and relational aspects. For Ed, business is fundamentally about fostering trust and seizing mutual opportunities for growth and success.

Ed Lhee's journey from a young boy in Seoul to a respected figure in American private equity is a testament to the power of opportunity, adaptability, and compassion in business. His story is a compelling reminder that in business, just as in life, people truly matter.

Ed Lhee | Partner, Private Equity | Wilmette, Illinois