Investment Firm Tecum Capital Helps Achieve $325 Million in Funding for Its Fourth SBIC Investment Fund
Tecum Capital, a leading investment firm, has announced the launch of its fourth Small Business Investment Company (SBIC) fund, Tecum Capital Partners IV, L.P. The new fund, with a committed capital of $325 million, will continue Tecum Capital's primary investment strategy of providing strategic, long-term debt and equity capital solutions for lower middle market companies.
Focus on Lower Middle Market Companies
Tecum Capital Partners IV, L.P. plans to accelerate its long-term growth by offering strategic, long-term debt and equity capital solutions, specifically mezzanine loans and minority equity investments, to lower middle market companies. The firm targets businesses with EBITDA over $3 million, primarily located in the Rust Belt, Midwest, Southeast, and Mid-Atlantic regions.
Strategic Partnerships
To implement these investments, Tecum Capital partners with independent sponsors, family offices, private equity funds, and management teams. The firm emphasizes a relationship-based, operationally supportive approach with portfolio companies.
SBIC License and Capital Deployment
The U.S. Small Business Administration (SBA) has provided Tecum Capital Partners IV with an SBIC license, which enables it to support recapitalizations, acquisitions, generational transitions, and growth initiatives. The SBA's two-to-one matching on capital raised will allow Tecum to deploy a total of $325 million.
Operational Impact
Tecum's approach has demonstrated strong operational impact, with previous funds contributing to a 42% increase in employee count among portfolio companies over twelve years, reflecting growth and job creation. The firm's name, meaning "with you" in Latin, highlights its philosophy of close partnership. Through this, it aims to facilitate sustainable growth and value creation in its targeted regional and market segment.
Stephen J. Gurgovits, Jr., Managing Partner of Tecum Capital Partners, stated that the fourth SBIC license will accelerate the company's long-term growth plans. The new fund, Tecum Capital Partners IV, L.P., is expected to contribute to the acceleration of Tecum Capital's long-term growth plans.
The new fund's investor base includes existing limited partners and new institutional investors. The strategy of Tecum Capital involves providing strategic, long-term debt and equity capital solutions for lower middle market companies, and Tecum Capital Partners IV, L.P. is expected to continue this strategy.
In summary, Tecum Capital Partners IV, L.P. aims to provide strategic, long-term debt and equity capital solutions tailored to the financing needs of lower middle market companies ($5M - $20M investment size) with EBITDA > $3 million. The fund will primarily focus on the Rust Belt, Midwest, Southeast, and Mid-Atlantic regions, collaborating with strategic partners for recapitalizations, acquisitions, growth, and transitions. The SBA's SBIC license will enable Tecum to deploy $325 million, contributing to the acceleration of Tecum Capital's long-term growth plans and facilitating sustainable growth and value creation in its targeted regional and market segment.
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