Cantilever Group Makes Strategic Minority Investment in Tecum Capital
On September 4, 2025, Cantilever Group, an independent investment firm focused on middle-market GP stakes, revealed its strategic minority equity investment in Tecum Capital, a well-regarded private investment firm also specializing in middle-market funding solutions. The announcement marks a pivotal moment for both firms, signaling a shared commitment to empower growth-oriented companies in the small business investment arena.
Tecum Capital, headquartered in Pittsburgh, Pennsylvania, has built a solid reputation for providing diverse capital solutions, including mezzanine debt and equity investments, across various industries such as manufacturing, value-added distribution, and business services. With this investment from Cantilever, Tecum now has the resources needed to strengthen its leadership position in the Small Business Investment Company (SBIC) sector. The funds will allow Tecum to invest in its team and push forward strategic growth initiatives intended to increase its portfolio of small businesses operating in the U.S. lower middle market.
Stephen Gurgovits, Managing Partner at Tecum Capital, expressed enthusiasm about the partnership, stating, "Cantilever's investment is a strong endorsement of our team, our track record, and our shared vision for long-term growth. We look forward to leveraging their experience and resources to accelerate the growth of our business." Gurgovits's comments highlight the confidence that both companies share in their collaborative potential.
At the same time, David Ballard, the Managing Partner of Cantilever Group, conveyed his excitement about joining forces with Tecum, emphasizing the value of their unique expertise in the SBIC program and their adaptable capital solutions. This partnership arises as Cantilever celebrates reaching the first close of its fund, demonstrating a robust commitment to enhancing the value of U.S.-based small businesses. Ballard stated, "We are thrilled to partner with Tecum Capital and their exceptional management team. Their unique expertise strengthens our confidence in the investment we have made, and we look forward to supporting Tecum's continued success."
The strategic investment also showcases the collaborative effort of both firms to empower small businesses, allowing them to thrive even in volatile economic conditions. By concentrating on lower middle market companies, both Tecum and Cantilever emphasize their commitment not only to financial returns but also to fostering long-term sustainability for these businesses.
To ensure a well-rounded approach to the legal and financial aspects of this strategic investment, Cantilever enlisted Sidley, Austin LLP as their legal advisor. Republic Capital Group served as the financial advisor, lending their expertise to navigate the investment landscape effectively. Similarly, Tecum Capital tapped into the skills of Goodwin Procter LLP and Bass, Berry & Sims, PLC as legal advisors, ensuring that all regulatory compliance and legal matters were diligently handled.
Cantilever Group has carved out a niche as an independent investment firm, known for providing flexible and strategic minority capital solutions aimed at middle-market private asset managers. Founded by a group of GP-stakes industry professionals, the firm focuses on asset managers with assets under management (AUM) ranging from $500 million to $5 billion. Through their investments, Cantilever aims to facilitate generational ownership transfers, fund GP commitments, and promote growth strategies across a diversified portfolio.
Tecum Capital Management has a similar vision but specifically tailors its approach to lower middle-market companies. Operating mainly from Pittsburgh, Pennsylvania, Tecum works with a variety of partners, including independent sponsors and family offices. Tecum typically invests between $5 million and $20 million in businesses with an EBITDA of over $3 million, showcasing a firm commitment to nurturing the middle-market growth space. Since its inception in 2006, the firm has invested more than $1 billion in over 100 acquisitions, reflecting its effective strategy in attracting capital and rendering it productive for burgeoning businesses. It manages multiple SBIC licensed funds while also innovating through its micro-cap equity control strategy under the Tecum Equity Alpha Management (TEAM) brand.
This partnership symbolizes a significant step towards expanding the reach of both Cantilever Group and Tecum Capital in the investment landscape. By pooling their expertise and resources, they create pathways for sustained growth, benefiting not only their respective firms but also the myriad of businesses they aim to support in the lower middle market sector.
Tecum Capital, headquartered in Pittsburgh, Pennsylvania, has built a solid reputation for providing diverse capital solutions, including mezzanine debt and equity investments, across various industries such as manufacturing, value-added distribution, and business services. With this investment from Cantilever, Tecum now has the resources needed to strengthen its leadership position in the Small Business Investment Company (SBIC) sector. The funds will allow Tecum to invest in its team and push forward strategic growth initiatives intended to increase its portfolio of small businesses operating in the U.S. lower middle market.
Stephen Gurgovits, Managing Partner at Tecum Capital, expressed enthusiasm about the partnership, stating, "Cantilever's investment is a strong endorsement of our team, our track record, and our shared vision for long-term growth. We look forward to leveraging their experience and resources to accelerate the growth of our business." Gurgovits's comments highlight the confidence that both companies share in their collaborative potential.
At the same time, David Ballard, the Managing Partner of Cantilever Group, conveyed his excitement about joining forces with Tecum, emphasizing the value of their unique expertise in the SBIC program and their adaptable capital solutions. This partnership arises as Cantilever celebrates reaching the first close of its fund, demonstrating a robust commitment to enhancing the value of U.S.-based small businesses. Ballard stated, "We are thrilled to partner with Tecum Capital and their exceptional management team. Their unique expertise strengthens our confidence in the investment we have made, and we look forward to supporting Tecum's continued success."
The strategic investment also showcases the collaborative effort of both firms to empower small businesses, allowing them to thrive even in volatile economic conditions. By concentrating on lower middle market companies, both Tecum and Cantilever emphasize their commitment not only to financial returns but also to fostering long-term sustainability for these businesses.
To ensure a well-rounded approach to the legal and financial aspects of this strategic investment, Cantilever enlisted Sidley, Austin LLP as their legal advisor. Republic Capital Group served as the financial advisor, lending their expertise to navigate the investment landscape effectively. Similarly, Tecum Capital tapped into the skills of Goodwin Procter LLP and Bass, Berry & Sims, PLC as legal advisors, ensuring that all regulatory compliance and legal matters were diligently handled.
Cantilever Group has carved out a niche as an independent investment firm, known for providing flexible and strategic minority capital solutions aimed at middle-market private asset managers. Founded by a group of GP-stakes industry professionals, the firm focuses on asset managers with assets under management (AUM) ranging from $500 million to $5 billion. Through their investments, Cantilever aims to facilitate generational ownership transfers, fund GP commitments, and promote growth strategies across a diversified portfolio.
Tecum Capital Management has a similar vision but specifically tailors its approach to lower middle-market companies. Operating mainly from Pittsburgh, Pennsylvania, Tecum works with a variety of partners, including independent sponsors and family offices. Tecum typically invests between $5 million and $20 million in businesses with an EBITDA of over $3 million, showcasing a firm commitment to nurturing the middle-market growth space. Since its inception in 2006, the firm has invested more than $1 billion in over 100 acquisitions, reflecting its effective strategy in attracting capital and rendering it productive for burgeoning businesses. It manages multiple SBIC licensed funds while also innovating through its micro-cap equity control strategy under the Tecum Equity Alpha Management (TEAM) brand.
This partnership symbolizes a significant step towards expanding the reach of both Cantilever Group and Tecum Capital in the investment landscape. By pooling their expertise and resources, they create pathways for sustained growth, benefiting not only their respective firms but also the myriad of businesses they aim to support in the lower middle market sector.
Topics Financial Services & Investing）
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