Capital Tecum successively shuts down its fourth Small Business Investment Company (SBIC) fund, amassing a total of $325 million.
Tecum Capital Launches Fourth SBIC Fund for Long-term Growth
Tecum Capital Management has announced the launch of its fourth Small Business Investment Company (SBIC) fund, Tecum Capital Partners IV, L.P. The new fund, with $325 million in committed capital, aims to continue the firm's successful investment strategy in lower middle market companies across the United States.
The primary focus of Tecum Capital Partners IV, L.P. is on providing strategic capital solutions for businesses with EBITDA over $3 million. The fund targets investments between $5 million and $20 million, and it is expected to follow the same investment strategy as the previous funds. This strategy includes providing financing solutions for recapitalizations, buyouts, generational transitions, mergers and acquisitions, and other growth capital needs.
The new fund will continue to support Tecum Capital's long-term growth plans, as indicated by Stephen J. Gurgovits, Jr., the Managing Partner of Tecum Capital Partners. "Our focus remains on making mezzanine loans and minority equity investments that support the growth of lower middle market companies," said Gurgovits. "We are excited to continue our proven investment strategy with this new fund."
Geographically, Tecum Capital has a footprint across the United States, with specific emphasis on the Midwest, Southeast, and Mid-Atlantic regions. The firm maintains a consistent focus on these regions for their investments in small- and medium-sized enterprises.
The investor base for Tecum Capital Partners IV, L.P. includes existing limited partners and new institutional investors. The new fund has received its license from the U.S. Small Business Administration (SBA), accelerating its long-term growth plans.
Tecum Capital's previous funds have contributed to a 42% increase in employee count among portfolio companies. The firm partners with financial buyers, independent sponsors, management teams, and family offices, aiming to support business growth through capital structures including mezzanine debt, subordinated notes, and private equity.
In summary, Tecum Capital Partners IV, L.P. is a $325 million SBIC fund that will continue the firm's primary strategy of offering long-term debt and equity capital solutions for lower middle market companies in the Rust Belt, Midwest, Southeast, and Mid-Atlantic regions. The fund is expected to contribute to the firm's growth trajectory, leveraging the team’s extensive experience and prior SBIC funds’ successful track record.
[1] Tecum Capital Partners IV, L.P. Press Release, Tecum Capital Management, www.tecumcapital.com/news [2] Tecum Capital Partners IV, L.P. Fact Sheet, Tecum Capital Management, www.tecumcapital.com/resources [3] U.S. Small Business Administration, www.sba.gov [4] Small Business Investment Company Program, U.S. Small Business Administration, www.sba.gov/investment-companies
- Tecum Capital Partners IV, L.P., a new Small Business Investment Company (SBIC) fund with $325 million in committed capital, aims to offer long-term debt and equity capital solutions for lower middle market companies – this is a strategic move within the finance sector.
- Tecum Capital Partners IV, L.P. focuses on private equity, targeting investments between $5 million and $20 million, as it partners with financial buyers, independent sponsors, management teams, and family offices to provide financing solutions and support business growth.
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