Westcott LLC, the investment office of the Westcott family, has formed Westcott Investment Group, a new lower middle market private equity firm.
Westcott Investment Group makes control equity investments and non-control growth capital investments from $3 million to $15 million in lower middle market companies that have EBITDA from $2 million to $12 million and revenue of at least $10 million. The firm is industry agnostic and invests across the US with a preference on companies located in the south and southwest.
“We have been interested in investing in the lower middle market segment for some time,” said Court Westcott, a managing partner of Westcott LLC. “Our experience investing in operating companies over the years combined with the inherent flexibility of family office capital makes this area a natural fit for investment.”
Carl Westcott founded Westcott LLC in 1996 as a private investment platform to invest in real estate, technology, energy, finance, and consumer services. Mr. Westcott began his career in the automotive industry and in 1974 he formed First Extended Service Corporation, an originator of extended automotive service agreements for new automobiles. The business was sold to insurance giant AON in 2006. In 1986, Mr. Westcott founded Westcott Communications that delivered video training programs via satellite. Mr. Westcott took the company public in 1989 and sold it in 1996 to K-III Holdings (formed by KKR in 1989). Westcott LLC has also made venture investments in Internet America, a regional internet service provider (sold in 1999); Digital Witness, a provider of digital surveillance products (sold in 2007); and Metaio, a computer vision and augmented reality company (sold to Apple in 2015).
Westcott Investment Group is led by President Jack Smith, Managing Director Nick Arthachinda, and Managing Director Swayze Smartt. Mr. Smith is Mr. Westcott’s long-time business partner and he is active in identifying new investment opportunities and structuring financial transactions for the firm. He currently serves as Chairman of Fountain Residential Partners, a real estate development firm owned by Westcott LLC, and he has also served in senior management and on many boards of public and private companies in his career including Chairman of Digital Witness, Chairman and CEO of Internet America, and President of Westcott Communications.
“I’ve found that even well-managed companies can benefit from the increased focus and new ideas brought from an outside partner,” said Mr. Smith. “We offer a unique combination of experience in growing companies through specific initiatives and the backing of flexible equity capital that is difficult to find from other sponsors.”
Mr. Arthachinda joins Westcott Investment Group from UMB Capital Corporation, a Kansas City-based small business investment company (SBIC). Mr. Smartt has been with Westcott LLC since January 2014 and is active as a manager overseeing the firm’s portfolio of direct investments including fixed income, private equity, and real estate.
Westcott Investment Group is headquartered in Dallas.
© 2019 Private Equity Professional | June 6, 2019
