Overview

Source Capital, LLC is a private equity firm founded in 2002 which makes both control equity investments and mezzanine debt investments in mature, lower middle-market U.S. companies across a range of industries. Source Capital’s investment strategy targets healthy growing companies with greater than $1.5 million in EBITDA seeking a growth-oriented partner. Source Capital has completed acquisitions and invested across a broad selection of industries including: business services, light manufacturing, consumer products & services, healthcare, and value-added distribution. Source Capital has offices in Atlanta and San Francisco.

 

Equity Partners

Mezzanine Partners

Structure
  • Preferred or common equity
  • Senior or subordinated debt
Investment Type
  • Management-backed recapitalizations, corporate divestitures, growth financings
  • Growth capital, working capital expansion, refinancings & recapitalizations, management buyouts, fundless sponsor transactions
Size
  • Companies with EBITDA greater than $1.5 million
  • Investment sizes from $2 – 10 million

Investment Philosophy

Source Capital focuses on adding value through a hands-on approach to efficiently and effectively prioritize and execute strategic initiatives with management and create value through growth, business development and operational improvement rather than through financial engineering or excessive leverage. Source Capital’s financial resources and expertise are used in tandem with the efforts of the management team to strengthen a business’ competitive position, and increase scale and profitability.

Why Source Capital

  • Reputation for Fairness and Partnering with Sellers: Source Capital employs a partnership approach with its management teams and values significant ownership as a component of management compensation. Source Capital has demonstrated to entrepreneurs not only immediate value from selling their company, but also the potential for accelerated appreciation of reinvested or retained equity interests.
  • Focus on Post-Investment Value Creation: Source Capital focuses on adding significant value through growth, business development and operational improvement rather than through financial engineering or excessive leverage.
  • Experienced and Multi-Faceted Team of Professionals: Source Capital has assembled a team of talented professionals who bring diverse backgrounds of investing, capital markets and operating experience to the Firm. The investment professionals have invested successfully through various economic cycles and market conditions.
  • Flexibility and Expediency: Investments are structured with the consistent goal of customizing solutions that achieve the seller’s objectives, aligning financial interests and finding creative solutions to achieve each seller’s non-financial objectives. Source Capital is a nimble firm and able to move quickly in a sale process.