Tecum Capital Partners with Family Office to Launch New Equity Control Fund
May 12, 2017 08:00 AM Eastern Daylight Time
PITTSBURGH–(BUSINESS WIRE)–Tecum Capital, the $450 million investment firm based in Pittsburgh, Pa., today announced the launch of its new control equity buyout platform, Tecum Equity Partners, III. The entity is a committed pool of capital backed by Western Allegheny Capital, a family office focused on control equity acquisitions. The nature of the platform allows for a longer term time horizon and a business friendly approach to ownership transitions and successions.
“We’ll leverage that expertise to provide strategic guidance and operational improvements to our portfolio companies.”
“Partnering with Western Allegheny adds a new dimension to our investment focus and an additional stable source of capital for our team,” said Stephen J. Gurgovits, Jr., managing partner of Tecum Capital Partners. “As a family office platform, we have no specific investment horizon and can take a long-term approach to building value in the companies we acquire.”
The target size investment for Tecum Equity Partners, III is lower and middle-market companies with an annual cashflow of $2 million to $7 million, with flexibility to consider other opportunities. “Our family office and extended network offers significant operational experience in the industrial, manufacturing and distribution sectors,” said Gurgovits. “We’ll leverage that expertise to provide strategic guidance and operational improvements to our portfolio companies.”
Tecum Equity Partners, III will generally invest $5 million to $20 million per investment with the ability to take larger amounts as necessary. This entity will work separately from Tecum Capital Partners, II, the newly launched $225 million SBIC fund, which provides mezzanine debt financings and minority equity capital.
Tecum Capital is a multi-strategy investment group, focused on investments in the Midwest, Southeast and Mid-Atlantic regions; and supports independent sponsors, family offices, private equity funds, and management teams to facilitate recapitalizations, buyouts, generational transitions, acquisitions, and other growth capital needs.
Launched as a wholly-owned subsidiary of F.N.B. Corporation in 2005, Tecum Capital spun out and formed its first SBIC fund in 2013 followed by a second SBIC fund in early 2017. Tecum Equity Partners, III is the third pool of dedicated capital with the firm now overseeing over $450 million of assets under management. 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. For more information, please visit www.tecum.com.