Southfield Capital has invested successfully in lower middle market businesses since 2002

  • Over 75 years of collective Partner experience in the lower middle market
  • Deep sector expertise and extensive executive and business advisor network
  • Track record of building exceptional growth businesses
  • Proven commitment to partnering with owners
    and managers
Industry Sector Focus
Outsourced Business Services
Large companies seeking to improve their return on invested capital continue to shed non-core activities. Southfield Capital targets companies that offer products/services that are essential to the customer and relatively insignificant to the customer's overall cost structure. Businesses that fit this profile are more likely to have high, defensible operating margins and stable customer relationships. These businesses frequently compete locally in niche segments, resulting in opportunities to grow organically by broadening service offerings and end markets and by executing an acquisition strategy.
Specialty Finance
Traditional bank lenders have pulled back meaningfully from many lending markets due to increased regulation and more stringent credit requirements. Significant opportunity exists for niche specialty finance companies to address the resulting unmet consumer and commercial demand for borrowing. Specialty Finance firms frequently compete in large, fragmented industries and have attractive organic growth opportunities. Firms in this sector can scale rapidly and increase shareholder value with the support of capital and an experienced, hands-on investor who can help drive an acquisition strategy, introduce complementary products, enhance technological innovation and professionalize the business.
Value Added Distribution
Southfield Capital targets companies that have carved out a defensible market segment and established deep customer relationships by providing unmatched service. Attractive investment targets within this sector are clearly differentiated from their competitors in their ability to enhance meaningfully the product value and the customer experience. Value enhancement can come in myriad forms, including product customization, repair and maintenance services, supply chain integration and rapid product delivery. Whatever the method employed, a value-added distributor is able to preserve pricing power and generate sustainable, attractive EBITDA margins, often in excess of 10 percent.