Tecum Capital Management, Inc, an investment firm based in Pittsburgh, received a license from the U.S. Small Business Administration to operate its third SBIC (Small Business Investment Company) fund and concurrently held its first closing for the new fund. This third fund is nearly fully subscribed at $240 million. Tecum’s new SBIC fund, Tecum Capital Partners III, L.P., will continue the strategies of its prior SBIC funds by making mezzanine loans and minority equity investments across many industries.
“This third SBIC license is a significant achievement for Tecum Capital as it will help drive our long-term growth plans,” said Stephen J. Gurgovits, Jr., managing partner of Tecum Capital Partners. “This new fund aligns with our primary investment strategy to provide strategic, long-term debt and equity capital solutions for lower middle market companies.”
The average investment size for the new fund will be $5 million to $20 million per transaction. “Our investment criteria remains consistent with our predecessor SBIC funds,” said Gurgovits. “We are targeting the same size companies using the same proven strategies. Our investment philosophy is driven by a seasoned team at Tecum Capital, which creates a strong value proposition for our investors and clients.” The investor base of the new fund includes many of the existing limited partners, along with several new institutional investors, including several new banks.