Investment Criteria
Equity Capital for Lower Middle Market Businesses
Source Capital is a private investment firm that invests in lower middle market companies across a range of industries. Since our founding in 2002, we have made more than 75 equity platform and add-on acquisitions while employing a patient, long-term approach to value creation across our portfolio.
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 Distribution
Consumer Products and Services
Tech-enabled Services
Transportation & Logistics
Target Profile
Asset light, businesses with strong competitive positions in niche 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 re-occurring revenues, attractive cash flow characteristics and meaningful growth opportunities
Geography
Entire United States and selectively in Canada
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 40 debt investments to date, and the team has over 100 years of collective experience sourcing, structuring, and managing such investments.
Investment Structure
Senior, unitranche and 2nd-lien debt
Equity co-investments
Investment size of $4 - $20 million
Investment Type
Management-backed leveraged buyouts
Recapitalizations
Independent sponsor transactions
Growth capital
Add-on acquisitions
Buy and build platforms
Refinancings
Financial Profile
Revenue: Greater than $10 million
EBITDA: Greater than $2 million
Industry Experience
Business/Industrial Services
Niche Manufacturing
Healthcare Services
Value-added Distribution
Consumer Products and Services
Technology Services
Transportation and Logistics
B2B E-commerce
Geography
Entire United States and selectively in Canada