Tecum Capital has raised $225 million for its second SBIC fund. Tecum Capital Partners II will focus on making mezzanine loans and minority equity investments. According to Tecum, each investment will average between $3 million and $15 million.
PITTSBURGH–(BUSINESS WIRE)–Tecum Capital, the $450 million investment firm based in Pittsburgh, Pa., today announced it received a license from the U.S. Small Business Administration (SBA) to operate its second SBIC (Small Business Investment Company) fund and concurrently held its first closing for the new fund. This second fund is fully subscribed at $225 million. Tecum’s new SBIC fund, Tecum Capital Partners II, will continue the strategies of its first SBIC fund by making mezzanine loans and minority equity investments across many industries.
“The second SBIC license is a significant achievement for Tecum Capital as it will help drive our long-term growth plans,” said Stephen J. Gurgovits, Jr., managing partner of Tecum Capital Partners. “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, the team at Tecum Capital supports independent sponsors, family offices, private equity funds, and management teams to facilitate 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. Tecum is Latin for ‘with you’ and relationship investing is an important part of our business,” Gurgovits said. During the four years under its first fund, Tecum saw the total employee count of its portfolio companies increase 23% to 3,677.
The average investment size for the new fund will be $3 million to $15 million per transaction. “Our investment criteria is similar to our first SBIC fund,” said Gurgovits. “We are targeting the same size companies using the same proven strategies. Our investment philosophy is driven by a seasoned team at Tecum Capital, which creates a strong value proposition for our investors and clients.” The investor base of the new fund includes most of the investors from the first SBIC fund, along with several new institutional investors, including several banks.
Originally launched as a wholly-owned subsidiary of F.N.B. Corporation in 2005, the Tecum Capital team spun out and formed its first SBIC fund in 2013. Along with Gurgovits, the firm’s original founding partners include Matthew L.T. Harnett and Tyson S. Smith, all of whom continue to provide leadership to the 10-person investment team.
Tecum Capital Partners II is a $225 million pooled fund of committed capital licensed by the SBA as an SBIC. The fund is managed by Tecum Capital Management, a private investment firm, which invests pools of committed capital in the form of mezzanine debt, subordinated notes, private equity and other types of financial capital into small- and medium-sized commercial enterprises. The firm is focused on providing financing for recapitalizations, buyouts, generational transitions, mergers and acquisitions and other growth capital needs. Tecum Capital Partners II is headquartered in Pittsburgh, Pa., with a geographic footprint that extends east of the Rocky Mountains with a focus in the Midwest, Southeast and Mid-Atlantic regions. For more information, please visit www.tecum.com.