October 2022
Source Capital, through its first SBIC fund, is pleased to announce its investment in A Plus Tree, Inc. ("A Plus" or the "Company"), a leading provider of specialized tree care services to commercial and residential customers along the West Coast. The fund, along with Plexus Capital, LLC, supported the acquisition of the Company by private equity firm Hyperion Capital Partners ("Hyperion"), providing debt financing and equity co-investment to finance the transaction and provide runway for future growth.
Based in California, A Plus is one of the largest independent tree care service providers on the West Coast with over 2,000 customers (~95% commercial) across California, Washington, Oregon, and Utah. Tree care is a large, growing industry with low cyclicality, underpinned by stable fundamental growth drivers and the non-discretionary, recession-resistant nature of the category spend, which in turn leads to predictable revenue streams. The Company employs a high touch, consultive sales model, led by its deep bench of 30 certified arborists and 1 master arborist, which is designed to build lasting relationships with customers, drive recurring business, and develop brand advocates.
"Hyperion brings lower middle market PE experience, a strong growth strategy, and complementary strategic skills to the Company, and we look forward to supporting their ongoing growth and expansion efforts in the next phase," said Rob Kissling, Principal at Source Capital.
About Hyperion Capital Partners
Hyperion Capital Partners is a private investment firm based in Los Angeles that establishes and utilizes partnerships with management to produce substantial long-term value. Hyperion makes control investments in companies that generate between $20 and $200 million of revenue and that are headquartered in North America. For more information, please contact info@hyperion-cp.com or visit www.hyperion-cp.com.
About Source Capital
Source Capital is a private investment firm focused on providing flexible equity and debt capital to lower middle-market companies across a range of industries. Source Capital's investment strategy targets growing companies with greater than $2 million in EBITDA seeking a growth-oriented partner. Since its founding in 2002, Source Capital has made 25 equity platform investments and 52 add-on acquisitions as well as 39 debt investments through four separate credit funds. To learn more about Source Capital or to discuss a new equity or debt investment opportunity, please visit source-cap.com, our LinkedIn page, or reach out to a member of our investment team.