We seek to deliver superior returns for our investors by partnering with a select number of great companies with first-class management teams where our capital and investment experience can support continued growth and value creation.


Lower middle market focus. 

Our principals have almost 100 years of collective experience investing in and working with lower middle market companies. We understand these companies and have firsthand experience solving the challenges they encounter throughout their growth and development. We are experienced in helping businesses institutionalize their procedures and operations in preparation for the next phase of the corporate lifecycle or for their investors’ ultimate exit.
 

Long-term partner, value-added approach. 

We take a long-term view to each of our portfolio companies, with the goal of building value over time. We recognize that the best partners are flexible and responsive to dynamic business environments. We identify strong companies with experienced management and well-formulated strategies and provide the funding, guidance, and relationships to execute them. We support our partners’ efforts to grow their businesses by providing strategic and corporate planning, operational support, best-practices insights, and an experienced sounding board at the Executive and Board of Directors level. We have invested in over 90 companies in a range of industries, and are able to bring a large network of valuable contacts and relationships to each situation.
 

Flexible and creative structuring. 

As seasoned middle market investors, we have lived and invested through several economic cycles and have invested across the capital structure. We understand how critical unfettered and direct access to flexible growth capital is to the success of a small business. We take pride in offering a creative structuring approach to ensure access to capital is not an impediment to the health of the business. Each investment we make is tailored to the facts and circumstances of the transaction in order to maximize operating flexibility.
 

Efficient process and monitoring. 

The small size of our team enables us to respond quickly and to deploy capital efficiently. Multiple members of our investment committee are involved in the early stages of each investment, providing a streamlined investment process. Once an investment is made, the same members of the team that executed the investment remain involved to support and help grow the company.

 
 

Farragut seeks to fill a gap in the capital structures of lower middle market companies by providing growth capital and acquisition financing that is otherwise unavailable from traditional lending sources.


We target businesses with established reputations and products, viable plans for growth, and demonstrated profitability and invest senior subordinated debt and/or preferred equity to help them achieve their objectives. Unlike traditional private equity groups, we do not look to take control positions in the companies in our portfolio. Instead, we seek to partner with owners and management as minority shareholders to create lasting value that endures long after the time of our involvement.

We are attuned to the need for flexible financing and will structure each investment to meet the requirements of our partners, as well as our own return objectives. We have engaged in financings for growth, acquisitions, recapitalizations, and management and leveraged buyouts and will work with owners to tailor our investments to their needs.

 
 

Please contact us with your business plan. We welcome proposals and inquiries from business owners, management teams, equity sponsors, senior lenders, and business intermediaries of all types.


  • We offer leading business owners a solution to their capital needs without sacrificing operating and board control of their businesses. With Farragut’s financing and operational expertise, we can help owners execute their plans for growth. Alternatively, we can provide capital needed to recapitalize a business or to effect a generational transfer.
     
  • We support strong, experienced management teams by providing financing for acquisitions and growth capital. Also, we can deliver capital for use in structuring and financing management-led buyouts.
     
  • We close the gap between debt and private equity financing for sponsors seeking to minimize their equity investment and maximize returns. We are able to leverage our strong network of industry contacts to identify other co-investors if necessary to complete the deal.
     
  • We value input from lawyers, accounting firms, investment banks, and business brokers who help us source prospective transactions. In all cases, appropriate fees are available to those who introduce us to opportunities in which we invest.