Tecum Capital Unveils Its Fourth SBIC Fund with Over $325 Million Commitment

Tecum Capital Launches Its Fourth SBIC Fund

Tecum Capital Management, Inc., a prominent investment firm headquartered in Pittsburgh, Pennsylvania, has made headlines by announcing the launch of its fourth Small Business Investment Company (SBIC) fund, named Tecum Capital Partners IV, L.P. This move comes after the firm received a license from the U.S. Small Business Administration (SBA), enabling it to strategically invest in lower middle market enterprises. With the recent closing of the new fund, Tecum Capital has successfully raised over $325 million in committed capital, reinforcing its dedication to fostering growth in underserved sectors.

Strategic Importance of the New Fund

Stephen J. Gurgovits, Jr., the Managing Partner at Tecum Capital, emphasized the significance of this latest SBIC license. He remarked that it represents a pivotal moment for the firm's ambitions, indicating a commitment to long-term growth plans designed to fuel the development of small businesses in critical markets. "This new fund will continue our primary investment strategy to provide strategic, long-term debt and equity capital solutions for lower middle market companies," he stated.

Tecum Capital's focus areas include regions of the Rust Belt, Midwest, Southeast, and Mid-Atlantic, where the firm aims to support independent sponsors, management teams, private equity funds, and family offices in executing recapitalizations, acquisitions, and buyouts. By doing so, Tecum Capital not only invests capital but also delivers operational improvements and strategic guidance to enhance the overall growth prospects of its portfolio companies.

Track Record and Investment Strategy

Under prior funds spanning over a decade, Tecum Capital has shown remarkable results, evidenced by a 42% increase in total employee counts across its portfolio companies — from 11,258 to 16,034. This success illustrates the firm's effective investing strategy, driven by a seasoned team that maintains a consistent average investment size ranging between $5 million and $20 million per transaction.

Gurgovits reassured stakeholders by affirming that the investment criteria for the new fund remain consistent with those of its predecessors, thereby ensuring that the proven strategies continue to direct its endeavors. With the additional backing of existing limited partners and several new institutional investors, Tecum Capital is poised for an impactful run ahead.

The Legacy of Tecum Capital

Originally stemming from a wholly-owned subsidiary of its former bank parent company in 2005, Tecum Capital spun out and launched its first SBIC fund in 2013. The investment firm, led by its founders Matthew L.T. Harnett, Stephen J. Gurgovits, Jr., and Tyson S. Smith, now comprises a 16-member team dedicated to delivering superior results and investment performance.

Tecum Capital’s mission is clear: to create partnerships that embody the firm’s Latin name, which translates to 'with you.' Relationship-based investing is fundamental to their operations, highlighting their commitment to fostering enduring relationships with clients and portfolio companies alike.

Conclusion

With the establishment of Tecum Capital Partners IV, the firm reaffirms its position in the market as a key player driving financial support to small businesses in vital industries. As it moves forward with its investment strategies, Tecum Capital stands ready to make a lasting impact in the landscape of lower middle market financing, a critical driver of the economy. Those interested in learning more about Tecum Capital or exploring partnership opportunities are encouraged to visit www.tecum.com.