Caruth Capital Partners is a Dallas-based private investment firm that partners with growth-minded business owners and management teams to build long term value in companies. We focus on family-owned or entrepreneur-led companies in the lower middle market where our capital, experience and resources can meaningfully impact results.
Led by three career private equity professionals, our team has collectively invested and operated in more than 100 businesses across a wide variety of industries. We believe that companies that work with us benefit from that knowledge as we work collaboratively to help management identify and capitalize on growth opportunities.
Typical investment situations for Caruth:
Our common background and vision for private equity investing revolves around key principles that include:
We invest broadly across the middle market spectrum in areas such as industrials (manufacturing, distribution, logistics); consumer (food and beverage manufacturing, education); media; business services.
We cater to the needs of middle market companies by offering speed, certainty and a flexible approach to transaction structure to fit specific needs. We prefer control investments, typically structured as buyouts, buy-and-build platforms, and recapitalizations. However, we can selectively make minority growth equity investments where we can retain certain control features and board rights.
We do not place definitive size criteria limits on our investments, as our ability to scale capital to meet opportunities is quite broad. However, our typical target company will generate $3 million to $10 million of EBITDA.
As we evaluate relatively smaller companies, we look for indicators of enduring franchise value such as assets, corporate infrastructure, business processes, management talent and a diversified customer base. Such qualities also underpin a business’s capacity to undertake a growth strategy.
As enterprise value increases, our only practical constraint is our preference to invest in entrepreneur or family-owned businesses and access proprietary opportunities.