Investment firm Tecum Capital successfully concludes its fourth Small Business Investment Company (SBIC) fund with a total capital of $325 million.
Tecum Capital Launches Fourth SBIC Fund to Support Lower Middle Market Companies
Pittsburgh-based Tecum Capital Management has announced the launch of its fourth Small Business Investment Company (SBIC) fund, Tecum Capital Partners IV, L.P. This new fund aims to provide strategic, long-term debt and equity capital solutions to lower middle market companies.
Tecum Capital Partners IV, L.P. will focus on investments between $5 million and $20 million, with a specific emphasis on businesses with EBITDA over $3 million. The fund will primarily invest in companies requiring financing for recapitalizations, buyouts, generational transitions, mergers and acquisitions, and growth capital needs.
The fund's geographical focus will be on the Rust Belt, Midwest, Southeast, and Mid-Atlantic regions, reflecting Tecum Capital's long-standing commitment to these areas. The fund has a broad U.S. footprint, but the emphasis on these specific regions underscores Tecum Capital's dedication to supporting businesses in these regions.
Stephen J. Gurgovits, Jr., Managing Partner of Tecum Capital Partners, commented, "We are excited to launch Tecum Capital Partners IV, L.P., which continues our proven strategies of offering mezzanine loans, minority equity investments, and other securities to small- and medium-sized commercial enterprises."
The new fund has secured $325 million in committed capital and received its license from the U.S. Small Business Administration (SBA). The fund's investor base includes existing limited partners and new institutional investors. Tecum Capital partners with independent sponsors, family offices, and private equity funds to identify investment opportunities.
The fourth SBIC license for Tecum Capital is a significant milestone for accelerating its long-term growth plans. The firm's previous funds have contributed to a 42% increase in employee count among portfolio companies, demonstrating the positive impact Tecum Capital has on the businesses it invests in.
Tecum Capital Partners IV, L.P. is poised to continue the firm's successful investment strategy, offering mezzanine loans and minority equity investments to support the growth and success of lower middle market companies in the United States.
[1] Tecum Capital Management website: https://www.tecumcapital.com/ [2] Tecum Capital Partners IV, L.P. press release: https://www.tecumcapital.com/news/tecum-capital-partners-iv-lp-announces-first-close-of-its-fourth-sbic-fund-at-325-million
- Tecum Capital Partners IV, L.P., a new private equity fund, focuses on investing in lower middle market companies, providing financing for their various business needs such as recapitalizations, mergers and acquisitions, and growth capital needs, with a geographical focus on the Rust Belt, Midwest, Southeast, and Mid-Atlantic regions.
- As Tecum Capital Partners IV, L.P. continues its proven investment strategy, it will offer mezzanine loans and minority equity investments, leveraging its fourth SBIC license and the $325 million in committed capital it has secured from both existing and new institutional investors, with plans to positively impact the growth and success of the companies it invests in.
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