Southfield Capital’s team works collaboratively with owners and managers to take their businesses to the next level

  • Drive organic and add-on acquisition growth
  • Build out management teams and infrastructure
  • Leverage extensive network of industry executives and business advisors
  • Place prudent amounts of leverage on investments
Investment Criteria
Target EBITDA of $4—12 million
We invest in lower middle market companies, which we define as businesses with revenue of $20—100 million and EBITDA of $4—12 million. The Partners view the lower middle market as an extremely attractive segment for their sector-focused strategy. There are a significant number of successful, growing businesses in this market. Southfield Capital seeks to work with owners and managers to build the businesses and then sell them into the middle market where large private equity funds and strategic acquirers compete aggressively for acquisitions.
Compelling Growth Potential
Southfield Capital targets businesses that have the potential for meaningful organic and acquisition growth. In Fund I, aggregate EBITDA of the Southfield investments grew by more than 100 percent during the Fund’s hold period. Approximately one third of that growth came through acquisition and two thirds through organic growth, including new product and service line offerings, greenfield location expansion and improved sales execution.
Exceptional Management Teams
For Southfield Capital the quality of the management team is as important, if not more important, than the quality of the underlying business. When we look back over our collective investment careers we conclude that partnering with great management teams is a private equity firm’s single most important success factor. The Partners also believe the ideal management partner is motivated more by the opportunity to transform their business than by the immediate payout from selling their business to Southfield.
Target Industry Sectors
Southfield Capital focuses on companies in the following industry sectors: Outsourced Business Services, Specialty Finance and Value Added Distribution. Southfield believes companies in the target sectors present attractive investment characteristics, including profitable niche product and service offerings and fragmented industries, which present opportunities for organic and acquisition growth.
Control Investments; Open to Minority Positions
Southfield Capital is primarily a control investor. But that does not mean we will be looking over our management teams’ shoulders as they make tactical decisions. We partner with owners and managers who share our strategic vision for the company, and then we give them the latitude to operate their businesses. While most of Southfield’s deals will be control investments, we are open to minority investments given the right circumstances. We understand that for some owners maintaining equity control is critical.