Mezzanine Fund

Mezzanine Fund at Tecum Capital

About the Fund

Tecum Capital Partners II is a $225 million SBIC fund that focuses on making mezzanine debt and minority equity investments. We are currently investing out of Fund II (2017 vintage) which represents a continuation in strategy and focus of its predecessor fund, Fund I (2013 vintage). Fund I, which operated under the namesake FNB Capital Partners, successfully deployed over $175 million in 25 companies. Prior to Fund I, Tecum’s founding partners invested over $60 million in capital as a subsidiary of a publically traded bank. Combined, Tecum has completed over 40 mezzanine debt & minority equity transactions.

Tecum has strong relationships with senior banks, many of which also serve as Limited Partners in Fund I and Fund II. We are able to leverage these relationships to facilitate a seamless “one-stop” solution for the entire debt portion of the capital structure when appropriate.

Investment Criteria

Investment sizes range from $3-15 million, but we have the ability to provide larger investments by souring additional capital from our network of co-investment partners. Investments are made in the form of mezzanine debt and minority equity co-investments.
Transaction Types
  • Leveraged Buyouts
  • Management Buyouts
  • Independent Sponsor and Search Fund Buyouts
  • Equity Sponsor Buyouts
  • Recapitalizations & Dividend Recaps
  • Intergenerational Transfers
  • Strategic Acquisitions
  • Growth Capital
  • Non-Sponsored Search Funds
Company Characteristics
  • $8 – $100 million of revenue
  • Greater than $2 million of EBITDA
  • EBITDA margins of at least 10%
  • Historical profitability or growth
  • Stable and/or growing markets
  • Geography: East of the Rocky Mountains
  • Experienced management team
  • Strong market position
  • No start-ups or project financing
  • No real estate ventures
Industry Focus
  • Manufacturing
  • Plastics
  • Specialty distribution
  • Technology / IT
  • Specialty and healthcare services
  • Defense / Forensics
  • Engineered components
  • Food/Staples
  • Service
  • Mezzanine Fund
  • Private Equity Fund