Capital Tecum successfully shuts down its fourth Small Business Investment Company (SBIC) fund, accumulating a total of $325 million.
Tecum Capital Launches Fourth SBIC Fund
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, exceeding $325 million in size, will continue Tecum Capital’s primary investment strategy of providing strategic, long-term debt and equity capital solutions for lower middle market companies.
The fund's long-term growth plan centers on accelerating its established investment strategy. Tecum Capital Partners IV, L.P. will focus on supporting companies through recapitalizations, buyouts, generational transitions, mergers, acquisitions, and other growth capital needs.
The fund continues Tecum Capital’s mission of relationship investing ("Tecum" means "with you"), emphasizing partnership and strategic guidance alongside capital deployment. This approach includes participating in mezzanine loans and making minority equity investments across diverse industries. The firm specifically targets lower middle market companies in Rust Belt states, the Midwest, Southeast, and Mid-Atlantic regions.
Tecum Capital works closely with independent sponsors, family offices, private equity funds, and management teams to facilitate various capital solutions aimed at promoting operational improvements and growth. Over the last 12 years, the firm's investments have notably increased the total employee count of portfolio companies by 42%, highlighting its commitment to sustainable growth.
Stephen J. Gurgovits, Jr., Managing Partner of Tecum Capital Partners, commented, "We are excited to launch Tecum Capital Partners IV, L.P. and continue our mission of providing capital and strategic guidance to lower middle market companies. Our approach of relationship investing and focus on operational improvements and growth has yielded strong results, and we look forward to building on that success with our new fund."
The new fund's investor base includes existing limited partners and new institutional investors. Tecum Capital Partners IV, L.P. will target investments between $5 million and $20 million, similar to Tecum Capital's previous funds. The fund has received its license from the U.S. Small Business Administration (SBA), further enhancing its capital deployment capacity.
In summary, the fund’s long-term growth plan is to:
- Provide flexible mezzanine debt and equity capital tailored to lower middle market companies.
- Support strategic corporate actions including recapitalizations, buyouts, generational transitions, and acquisitions.
- Build deep partnerships emphasizing operational improvements and strategic guidance.
- Target geographic regions with strong industrial and economic bases (Rust Belt, Midwest, Southeast, Mid-Atlantic).
- Leverage SBA SBIC licensing to enhance capital deployment capacity.
This multi-faceted capital and strategic partnership approach distinguishes Tecum Capital Partners IV in serving the nuanced needs of its target market.
- Tecum Capital Partners IV, L.P., a new Small Business Investment Company (SBIC) fund, will continue its focus on providing strategic, long-term finance solutions, including mezzanine loans and minority equity investments, for lower middle market companies.
- The fund's strategic plans for growth involve participating in various capital solutions, such as recapitalizations, buyouts, and acquisitions, across diverse industries, particularly in Rust Belt states, the Midwest, Southeast, and Mid-Atlantic regions.
%20fund%2C%20accumulating%20a%20total%20of%20%24325%20million.){kind=link}