Southfield Capital’s team works collaboratively with owners and managers to take
their businesses to the next level
Drive organic and add-on acquisition growth
Build out management teams and infrastructure
Leverage extensive network of industry executives and business advisors
Place prudent amounts of leverage on investments
We invest in lower middle market companies, which we define as businesses with revenue
of $20—100 million and EBITDA of $4—12 million. The Partners view the lower
middle market as an extremely attractive segment for their sector-focused strategy.
There are a significant number of successful, growing businesses in this market.
Southfield Capital seeks to work with owners and managers to build the businesses
and then sell them into the middle market where large private equity funds and strategic
acquirers compete aggressively for acquisitions.
Southfield Capital targets businesses that have the potential for meaningful organic
and acquisition growth. In Fund I, aggregate EBITDA of the Southfield investments
grew by more than 100 percent during the Fund’s hold period. Approximately one third
of that growth came through acquisition and two thirds through organic growth, including
new product and service line offerings, greenfield location expansion and improved
For Southfield Capital the quality of the management team is as important, if not
more important, than the quality of the underlying business. When we look back over
our collective investment careers we conclude that partnering with great management
teams is a private equity firm’s single most important success factor. The Partners
also believe the ideal management partner is motivated more by the opportunity to
transform their business than by the immediate payout from selling their business
Southfield Capital focuses on companies in the following industry sectors: Outsourced
Business Services, Specialty Finance and Value Added Distribution. Southfield believes
companies in the target sectors present attractive investment characteristics, including
profitable niche product and service offerings and fragmented industries, which
present opportunities for organic and acquisition growth.
Southfield Capital is primarily a control investor. But that does not mean we will
be looking over our management teams’ shoulders as they make tactical decisions.
We partner with owners and managers who share our strategic vision for the company,
and then we give them the latitude to operate their businesses. While most of Southfield’s
deals will be control investments, we are open to minority investments given the
right circumstances. We understand that for some owners maintaining equity control