Tecum Capital has received a license from the US Small Business Administration (SBA) to operate its second SBIC (Small Business Investment Company) fund and has held a first closing for the new fund at a fully subscribed $225 million.
Tecum’s new fund, appropriately named Tecum Capital Partners II, will continue the strategies of its first SBIC fund by investing $3 million to $15 million of subordinated debt and equity in companies that have revenues of $8 million to $100 million and EBITDA of at least $2 million. The investor base of the new fund includes most of the investors from the firm’s first SBIC fund, along with several new institutional investors, including several banks.
“The second SBIC license is a significant achievement for Tecum Capital as it will help drive our long-term growth plans,” said Stephen Gurgovits, Jr., Managing Partner of Tecum Capital. “This new fund aligns with our primary investment strategy to provide strategic, long-term debt and equity capital solutions for lower middle market companies.”
With a strong interest in Rust Belt states as well as the Midwest, Southeast and Mid-Atlantic regions, Tecum Capital supports independent sponsors, family offices, private equity funds, and management teams on recapitalizations, buyouts, generational transitions, acquisitions, and other growth capital needs.
“Through strategic guidance and operational improvements, Tecum Capital offers an attractive partnership for our portfolio companies,” added Mr. Gurgovits. “Tecum is Latin for ‘with you’ and relationship investing is an important part of our business.” During the four years under its first fund, Tecum saw the total employee count of its portfolio companies increase by 23% to more than 3,600.
Tecum Capital was founded as a wholly-owned subsidiary of F.N.B. Corporation in 2005. In 2013, the Tecum Capital team spun out of F.N.B. and formed its first SBIC fund. Along with Mr. Gurgovits, the firm’s original founding partners include Matthew Harnett and Tyson Smith. Tecum Capital is based in the Pittsburgh suburb of Wexford (www.tecum.com).
© 2017 Private Equity Professional | May 9, 2017