FY 2024 | Year in Review

We would like to take this opportunity to thank our investors, partners, and friends for an active and a successful 2024. During the year, we closed 30 investments and achieved seven successful exits on existing investments (through either a full sale of the business or partial recapitalization). Of the 30 investments, we closed eight new platform investments, and we were very active in supporting our portfolio companies, closing 22 follow-on / add-on acquisitions across a number of industries, including Appraisal Management, Auto Collision Repair, Commercial Solar Installation, Education, Equipment Rental, HOA Management, Home Storage, Photonics and Wrecking & Towing. Additionally, we received our SBIC license for our second SBIC fund and hit our hard cap for the fund. Looking ahead, we are actively seeking new debt and equity investments, including add-on opportunities. Thank you all for your continued support, and best wishes for a healthy and prosperous 2025!

Source Capital is pleased to announce that the U.S. Small Business Administration ("SBA") approved our fifth direct lending fund for its Small Business Investment Company ("SBIC") license. This represents Source Capital's second SBIC license. Source Capital is excited to continue its partnership with the SBA and proud of this accomplishment. Source Capital successfully closed on $315.5 million in commitments (including anticipated SBA debenture leverage) for its fifth direct lending fund, reaching its hard cap target.

• ACG M&A South (Atlanta)
• iGlobal Independent Sponsor Summit (Miami)
• Rocky Mountain Corporate Growth Conference (Denver)
• Small Business Investor Alliance (Nashville)
• SBIA Independent Sponsor Conference (Nashville, Philadelphia, Los Angeles and Chicago)
• ACG Wine Tasting (Atlanta)
• iGlobal Forum (New York City)

Joe Rodgers, Managing Director at Source Capital, recently launched a podcast, "Perspectives of the Ever-Evolving Independent Sponsor Universe".

The podcast brings together panels of seasoned investment professionals to offer invaluable insights into the dynamic and ever-changing world of independent sponsors within the competitive M&A landscape. Through engaging discussions, they highlight an array of topics relevant to the growing independent sponsor space, providing expert perspectives related to control buyouts, capital, investment banking and legal.

Available on the following:

In 2024, we launched and completed a rebranding initiative and new website. The redesign reflects 22 years of excellence, including 150+ investments closed, six funds raised, and 200+ years of combined experience accumulated across our team.

"It's hard to believe that 20+ years ago, Kate and I co-founded Source with a vision to grow lower-middle-market companies through a hands-on, partnership approach. We have grown tremendously since then, including the number of transactions closed, total capital raised, team members added, and the expansive network of partnerships we've developed. We felt it was time to elevate our brand to match our successes" - Tom Harbin, Managing Partner.

We are excited to have you visit our new website at www.source-cap.com

ABOUT SOURCE CAPITAL

Source Capital is an Atlanta, GA based private investment firm that has been providing flexible equity and debt capital to lower middle market companies for over 20 years. The firm has a value-added investing approach that brings (i) patient capital focused on long-term value creation; (ii) collaborative partnerships with management teams, founders/owners, private equity investors and independent sponsors; and (iii) strategic and operational resources to its portfolio companies. To learn more about Source Capital or to discuss a new equity or debt investment opportunity, please reach out to a member of our investment team or visit www.source-cap.com.