Private Equity Fund

Tecum Equity

About Our Private Equity Fund

Tecum Equity is backed by committed capital that was formed to build a portfolio of lower middle market businesses primarily in the industrial, manufacturing, and distribution sectors. We seek control equity positions in businesses with $2 million to $7 million of EBITDA. Tecum Equity has a long term investment horizon and take a patient approach to building equity value in the businesses we acquire.

The capital committed to Tecum Equity is supplied by a local entrepreneur that built and successfully grew his industrial business through 40 years of “old-fashioned” American work ethic and ingenuity. He now employs over 1000 people and has grown his business to become one of the largest privately held companies in Western Pennsylvania. His core philosophy is to invest in great people, a philosophy that Tecum has adopted when partnering with management teams and businesses owners. The goal of our equity office fund is to build more than a portfolio of businesses, it is to build a legacy for our investor. As such, we seek business owners that value seeing their own legacy survive well after they exit their business.

We seek to function as a value-added resource to the incumbent management teams of our portfolio companies. While we empower these management teams to execute a business plan, Tecum and its network of executives and industry experts provides oversight in the areas of strategic planning, business and financial management, operational improvements, add-on acquisitions, and growth financing. With a long term investment approach and no liquidity requirements, we are able to more patiently solve problems and issues without the restrictions of a limited term fund.

Investment Criteria

Investment sizes ranging from $5 – 20 million in businesses where Tecum will be the first institutional capital
  • Leveraged Buyouts
  • Management Buyouts
  • Lineage Succession
  • Transaction Recapitalizations
  • Corporate Carve-outs
  • More than $10 million of revenue
  • $2 million to $7 million of EBITDA
  • EBITDA margins of at least 10%
  • Historical profitability or growth
  • Committed management team willing to reinvest
  • Identifiable growth opportunities and/or operational improvements
  • Solid long-term industry fundamentals (non-cyclical)
  • Defensible market position / differentiated product or service
  • Diversified customer base with no customer greater than 30%
  • Platform for future acquisitions
  • Located east of the Rocky Mountains with a strong interest in Rust Belt states (PA, OH, WV, MI)

Primary Focus

  • Niche Manufacturing
  • Value-added Distribution
  • General Industrials

Will also consider:
  • Business Services
  • Transportation 
  • Food