MSouth Capital to Bring Debt Financing and Minority Equity Capital to Middle Market Companies in the South
March 30, 2021
MSouth Equity Partners IV, L.P. ("MSouth Fund IV") has formed MSouth Capital as a provider of private credit and minority equity financing solutions, to meet the needs of companies in the South that have a desire to pursue recapitalizations, acquisitions or other corporate initiatives, with a focus on businesses generating EBITDA of $3 million or greater. MSouth Capital aims to deploy in excess of $350 million in its target markets over the next three years.
Frank Izzo has been chosen to lead the company given his long tenure in commercial banking, private debt and private equity. “We aim to support the small to mid-size businesses that form the backbone of the region’s economy, bringing the resources and advisory services they need to grow and succeed,” says Izzo, CEO of MSouth Capital. “Our team partners with the business owner, but also works with those who serve smaller business enterprises to accomplish next-stage growth, including wealth managers, accountants, attorneys, investment bankers and business brokers.”
There are 28 million small and mid-size companies in the U.S., which together comprise 99 percent of the nation’s businesses. Yet, funding for this segment is often limited. According to the Small Business Administration, the most common – and largest – source of capital to finance business expansion is personal and family savings (22%).
MSouth Capital seeks to bridge that gap, offering an alternative to typical majority-ownership equity financing by providing a wide range of funding that can combine debt structures and minority equity along with deep expertise in various organic and inorganic growth strategies.
A key element of MSouth Capital’s investment strategy is partnering with entrepreneurs and owners who have significant ownership stakes in their companies and experienced management teams in place. The company’s affiliation with MSouth Equity Partners allows it to tap into more than 37 years of expertise focused on businesses across the South from Texas to Washington, D.C. MSouth Equity Partners has invested $1.2 billion across 34 companies in the South over the past 13 years.
“Whether it’s a family-owned company planning a generational transfer or any type of business that sees an unmet need in the market they could expand into with proper funding, MSouth Capital can be the trusted advisor and financing partner that helps them realize their goals,” says Michael D. Long, a partner and co-founder of MSouth Equity Partners.
Founded in 2020, MSouth Capital is a portfolio company of MSouth Fund IV. MSouth Fund IV is managed by MSouth Equity Partners, LLC, a private equity investment manager with offices in Atlanta and Nashville.
About MSouth Capital
MSouth Capital is an Atlanta-based provider of private credit and minority equity financing solutions. It provides capital primarily to small and middle market companies with EBITDA of $3 million or greater and a presence in the South. MSouth Capital serves businesses and industry sectors where its team has extensive investment, management and transactional experience. A key element of MSouth Capital’s investment strategy is partnering with strong management teams and individuals who have significant ownership stakes in their company to share a commitment to stable and sustainable growth. MSouth Capital is a portfolio company of MSouth Fund IV. Learn more at www.msouthcapital.com.
About MSouth Equity Partners, LLC
MSouth Equity Partners, LLC is a private equity investment firm that provides equity capital and expertise to support management teams in acquisitions and recapitalizations of lower middle market companies typically valued between $25 million and $200 million. Based in Atlanta and offices in Nashville, MSouth Equity Partners, LLC invests primarily in the South with a consistent focus on management buyouts of business services, specialty distribution, niche manufacturing, healthcare services and telecommunications/media companies. With more than $2.2 billion raised across four funds, MSouth Equity Partners, LLC is a successor to Cravey, Green & Wahlen, Inc., which was founded in 1984. Learn more at www.msouth.com.