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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


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