Investment Strategy
- RProvide flexible, one-stop debt and equity capital solutions for emerging companies, established enterprises and founder/family-owned businesses grow and transition
- RSeeking to invest $5 to $25 million in each investment (total capital commitment)
- RInvestment structures include senior secured debt, second lien/subordinated debt, and preferred/common equity investments
- RFocus on lower middle market companies with at least $10 million of revenue and/or $2 million of EBITDA
- ROpen to investing across the U.S., but target opportunities in the Southern U.S., predominately Texas and the Gulf Coast region
Investment Criteria
- RDefensible competitive advantage and/or differentiated product or service offerings
- RSolid and sustainable margin structure
- RLimited customer concentration
- RProven business model with seasoned and committed management team
- RAbility to maintain positive cash flow through various business cycles
Industry Focus
The fund considers investments across industries, but focuses on markets where the team has in-depth experience and strong networks, such as:
Business Services
Industrial Services
Information Technology
Advanced Manufacturing
Value-Added Distribution
Sustainable Energy
Competitive Advantages
Experience team with extensive network of regional relationships
The Partners have 100+ years of combined experience investing in small and mid-size businesses in Texas and the Southern U.S. Deal flow is generally sourced directly, rather than involving auctions.
Flexible capital solutions
Over the course of their careers, the Partners have participated in a wide variety of transaction types, bringing experience to structure customized capital solutions for each unique situation.
Efficient and timely decision making
A small, cohesive team will result in a focused, efficient underwriting process. We can react quickly and move from introduction to close in a timely manner.
Operational expertise
The Partners have led successful companies as CEOs or executive leaders; we are a value-added partner beyond providing capital.
Underserved market
The Fund targets the underserved lower middle market in the Texas and Gulf Coast region.
Uses of Capital
- RGrowth
- RAcquisitions
- RDebt refinancing
- RRecapitalization
- ROwnership transition
- RManagement buyout
- RFamily generational transfer
