About Us

Investment Criteria – Direct Lending

Equity
Direct Lending

Equity Capital for Lower Middle Market Businesses

Source Capital is an equity firm that invests in mature, lower middle market companies across a range of industries. Since its founding in 2002, Source Capital has made more than 60 equity platform and add-on acquisitions.

Investment Structure

Preferred or common equity

Investment Type

Management-backed leveraged buyouts
Recapitalizations
Buy and build platforms
Growth capital
Corporate divestitures
Add-on acquisitions

Financial Profile

Revenue: Greater than $10 million
EBITDA: Greater than $2 million

Industry Experience

Business/Industrial Services
Niche Manufacturing
Healthcare Services
Value-added Distributionn
Consumer Products and Services

Target Profile

Asset light, niche businesses with strong competitive positions in small and/or fragmented industries
Strong regional businesses
Tech-enabled services and opportunities to develop new products and services
Opportunity for market consolidation through add-on acquisitions
Companies with recurring revenues, attractive cash flow characteristics and meaningful growth opportunities

Geography

Entire United States and selectively in Canada

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Direct Lending for Lower Middle Market Businesses

Source Capital is focused on providing flexible capital to both sponsor and non-sponsor companies in the lower middle-market. The firm has completed more than 25 debt investments to date, and the team has over 100 years of collective experience sourcing, structuring, and managing such investments.