Investment Firm Tecum Capital Successfully Closes Fourth Small Business Investment Company Fund at a Value of $325 Million
Tecum Capital Launches Fourth Small Business Investment Company Fund
Tecum Capital Management has entered a new chapter in its growth journey with the launch of its fourth Small Business Investment Company (SBIC) fund, Tecum Capital Partners IV, L.P. The fund, licensed by the U.S. Small Business Administration (SBA), has secured $325 million in committed capital.
The new fund will continue Tecum Capital's strategy of offering mezzanine loans and minority equity investments. It aims to support recapitalizations, acquisitions, and growth initiatives, enabling businesses to scale efficiently within their markets.
Since its inception, Tecum Capital Partners IV, L.P. has already made investments in several companies across various industries. These include Chemistry, an award-winning marketing and digital agency; TPI Efficiency, an energy broker and sustainability consulting firm; and Arrow Waste, a major waste hauling services provider.
Tecum Capital's approach is unique. It combines strategic partnership with capital infusion, leveraging its SBA license to access additional leverage financing. This strategy enhances the growth potential of its portfolio companies over time.
Stephen J. Gurgovits, Jr., Managing Partner of Tecum Capital Partners, expressed his excitement about the new fund, stating, "We are thrilled to launch Tecum Capital Partners IV, L.P. This fund will continue our long-standing tradition of providing strategic, long-term debt and equity capital solutions to lower middle market companies."
The focus of Tecum Capital Partners IV, L.P. remains on businesses located in the Rust Belt, Midwest, Southeast, and Mid-Atlantic regions. It primarily invests in companies with EBITDA over $3 million, targeting amounts between $5 million and $20 million per investment.
Over the past twelve years, Tecum Capital's previous funds have led to a 42% increase in employee count among portfolio companies, demonstrating the fund's significant impact on the growth of its invested businesses.
Tecum Capital partners with independent sponsors, family offices, and private equity funds to identify potential investment opportunities. The firm's strategy has resulted in multiple add-on acquisitions and platform developments, suggesting a sustained growth trajectory for its invested companies under the fourth SBIC fund.
In conclusion, Tecum Capital Partners IV, L.P. facilitates growth by delivering tailored financial solutions and operational support, leveraging SBA-backed capital to empower smaller businesses to scale efficiently within their markets.
Tecum Capital's strategy, as embodied in Tecum Capital Partners IV, L.P., involves lending mezzanine loans and providing minority equity investments to lower middle market companies, which are primarily based in the Rust Belt, Midwest, Southeast, and Mid-Atlantic regions. This private equity fund, financed with a total of $325 million in committed capital, specializes in offering long-term capital solutions to businesses with EBITDA over $3 million, typically investing between $5 million and $20 million per business.
