Investment fund Tecum Capital concludes its fourth Small Business Investment Company (SBIC) with a capital raise of $325 million.
Tecum Capital Launches Fourth SBIC Fund to Boost Lower Middle Market Investments
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, which has secured $325 million in committed capital, marks a significant milestone in Tecum Capital's long-term growth plans.
According to Stephen J. Gurgovits, Jr., Managing Partner of Tecum Capital Partners, the new fund will continue Tecum Capital's primary strategy of offering strategic, long-term debt and equity capital solutions for lower middle market companies.
Tecum Capital Partners IV, L.P. is designed to provide capital solutions for companies in the lower middle market, focusing on mezzanine loans and minority equity investments. The fund targets investments generally between $5 million and $20 million in companies with EBITDA exceeding $3 million.
The new fund will primarily operate in the Rust Belt, Midwest, Southeast, and Mid-Atlantic regions, partnering with independent sponsors, family offices, and private equity funds to support recapitalizations, acquisitions, and growth initiatives of portfolio companies.
The strategy of Tecum Capital Partners IV, L.P. is proven, with substantial employment growth in portfolio companies over prior fund cycles. Over the past twelve years, Tecum Capital's previous funds have contributed to a 42% increase in employee count among portfolio companies.
The new fund's investor base includes existing limited partners and new institutional investors, reflecting strong confidence in Tecum Capital's investment approach. The fund has also received its license from the U.S. Small Business Administration (SBA), a key milestone facilitating accelerated growth under this strategy.
The new fund is expected to contribute to the acceleration of Tecum Capital's growth, continuing its established strategy of providing strategic, long-term debt and equity capital solutions to lower middle market companies.
[1] Tecum Capital Partners IV, L.P. press release, [date].
The new fund, Tecum Capital Partners IV, L.P., will predominantly focus on private equity investing in the finance sector, with a primary objective of boosting business growth in the lower middle market. This fund will operate mainly in the Rust Belt, Midwest, Southeast, and Mid-Atlantic regions, providing capital solutions through mezzanine loans and minority equity investments, typically between $5 million and $20 million for companies with EBITDA exceeding $3 million.
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