Capital Tecum successfully concludes its fourth Small Business Investment Company (SBIC) fund, securing $325 million for further investments.
Tecum Capital Launches New SBIC Fund, Continuing Focus on Lower Middle Market Companies
Tecum Capital Management, a Pittsburgh-based private investment firm, has launched its fourth Small Business Investment Company (SBIC) fund, Tecum Capital Partners IV, L.P. The new fund, worth $325 million, has secured committed capital and is licensed by the U.S. Small Business Administration (SBA) [1].
The strategy of Tecum Capital Partners IV, L.P. remains consistent with that of its predecessors. The fund will focus on providing strategic, long-term debt and equity capital solutions to lower middle market companies, primarily in the Rust Belt, Midwest, Southeast, and Mid-Atlantic regions [1].
Tecum Capital's approach, often referred to as 'relationship investing', has seen significant growth in employee counts within their portfolio over the past twelve years. This is due to the firm's commitment to offering operational improvements and strategic guidance to their portfolio companies [1].
The new fund continues Tecum Capital's primary investment strategy, as stated by Stephen J. Gurgovits, Jr., Managing Partner of Tecum Capital Partners. The fund will offer mezzanine loans and minority equity investments, targeting businesses with EBITDA over $3 million, and investments between $5 million and $20 million [1].
The investor base for Tecum Capital Partners IV, L.P. includes both existing limited partners and new institutional investors. However, no new information about the impact on employee count among portfolio companies or the investor base was provided in the quote [1].
The U.S. Small Business Administration (SBA) has granted a license to Tecum Capital Partners IV, L.P., enabling the fund to leverage SBA support for its investments [1].
Overall, Tecum Capital Partners IV, L.P. will continue Tecum Capital Management's strategy of offering mezzanine loans and minority equity investments, with a focus on supporting the growth and operational improvement of lower middle market companies through long-term capital partnerships.
Tecum Capital Partners IV, L.P., a new SBIC fund launched by Tecum Capital, will focus on providing finance solutions through mezzanine loans and minority equity investments to lower middle market companies, as part of its strategy in private equity. The new fund, licensed by the U.S. Small Business Administration (SBA), will continue Tecum Capital's primary investment strategy.
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