Farragut Announces Final Close of $263 Million Third Fund
CHEVY CHASE, MD – Farragut Capital Partners (“Farragut”), a Chevy Chase, Maryland-based private investment firm, is pleased to announce the above-target close of Farragut SBIC Fund III, LP (“Fund III”), its largest SBIC fund to date with $263 million in capital. Fund III will continue executing on Farragut’s proven strategy of supporting profitable, growing, U.S.-based lower middle market companies alongside strong ownership and exceptional management teams. Participants in the new vehicle include a range of new and returning investors including U.S. commercial banks (community, regional, and national), family offices, high net worth individuals, and asset managers.
Since its founding in 2011, Farragut has focused on partnering with private equity sponsors, owner-operators, and independent sponsors to support companies in light-manufacturing, business services, value-added distribution, and IT/software across a variety of industries. Farragut’s investments have supported sponsors-led and management-led buyouts, add-on acquisitions, growth financings, dividend recapitalizations, and balance sheet restructurings. Farragut is a trusted partner providing capital resources, strategic guidance, and value-added industry relationships. Its senior investment professionals have worked together for nearly 20 years and have over 75 years of combined investment experience, entirely focused on the lower middle market.
Farragut will invest Fund III across 25 to 35 companies over the next five years, targeting debt and equity investments of $4 million to $30 million in companies that have revenues of $10 million or more. Fund III has been actively investing since early 2024 and has made thirteen investments to date, with significant dry powder left to deploy.
“We are humbled and grateful for the support of our investors, both existing and new, as well as the Small Business Administration on the launch of Farragut SBIC Fund III, LP. Their trust in the Farragut team and endorsement of our investment strategy means a great deal to us.” said Javier Aguirre, Farragut co-founder. “Closing our third fund is a huge milestone, and we’re looking forward to Farragut’s next phase of growth.”
About Farragut Capital Partners
Farragut Capital Partners is a lower middle market private debt and structured equity firm based in Chevy Chase, Maryland. With over $550 million in assets under management across three funds, the firm invests subordinated debt, unitranche debt, and equity in operating businesses throughout the United States. Farragut's investments support buyouts, add-on acquisitions, growth financings, dividend recapitalizations and other balance sheet recapitalizations. The firm partners with private equity sponsors, owner-operators, and independent sponsors and seeks to deploy between $4 million and $30 million (investments over $20 million will be syndicated) per investment. The firm has invested in nearly 70 companies since its founding in 2011.