RCap Equity Partners is a private equity firm focused on investing in lower middle market businesses. We partner with owners and management teams who share our vision of creating long-term value and elevating companies to the next level.
Who We Are
RCap Equity Partners makes control equity investments and select minority investments in lower middle market companies. RCap is dedicated to driving strategic, operational, and financial growth in portfolio companies. We believe the key to building long-term value begins with a collaborative partnership with quality senior management. Our role is to ensure that the people, plans, processes and capital are in place to support management and to help create sustainable, long-term value for all stakeholders.
We have a collaborative, team oriented approach that provides management with the resources and support they need. We set common goals, identify and develop opportunities, and then commit our strategic, operational, and industry expertise to enhance company performance.
Our Investment Approach
What we look for:
We provide equity capital and expertise to support management teams in acquisitions and recapitalizations of lower middle market companies typically valued between $15 and $50 million. We can be flexible in our structure and can offer creative solutions. Our investment philosophy is governed by the following themes:
Long-Term Perspective
Our investment horizon is flexible and aligned with management’s objectives for achieving long-term sustainable value. We are not limited to the parameters of an investment fund and have the patience and flexibility to successfully execute our common strategic objectives.
Value Creation
RCap works with management to develop strategic direction and key growth initiatives. We identify opportunities for operational improvement, revenue growth strategies, add-on acquisitions, and management development. We also work with management to strengthen financial systems and controls.
Alignment of Interests
Our transactions are structured to closely align the interests of all our partners to ensure that all are focused on value creation in our companies. Often sellers will maintain a significant ownership and a strategic role following a transaction.
Flexible Capital Structure
We ensure that each company’s balance sheet is designed to support its strategic plan. While most of our acquisitions are leveraged, the degree of leverage and the debt structures utilized are tailored specifically to each individual company.
Proven Management
We believe quality management is the primary driver of success.
Trusted Partner
We seek to be a valuable partner to management and trusted co-owner of the business. Our role is to support management and utilize our experience and resources to help create value.
Mr. Kutch is a General Partner of RCap Equity Partners. Previously, Mr. Kutch was a Managing Director at Bay Capital Investment Partners, a Small Business Investment Company with an investment focus on lower middle market companies. Prior to Bay Capital, Mr. Kutch was a Senior Managing Director with Star Mountain Capital, a specialized asset management firm focusing on the lower middle-market, and a Director in the Alternative Asset Division of MetLife. Mr. Kutch began his career in commercial banking and has over 30 years of experience in private equity, mezzanine finance and commercial banking.