Seacoast is a private investment fund focused on providing non-controlling junior capital to privately-held lower middle market companies across the United States. We are different from most junior capital funds in that we take a “sponsorless” approach to investing, meaning we prefer to work directly with individual company owners or management teams rather than outside investor groups that require operational or board control. As such, we typically involve ourselves in situations where a management team seeks capital to maximize the value of, rather than sell, their business.
These situations have historically included:
To a lesser extent, we will also selectively evaluate financings led by independent sponsor groups or traditional equity sponsors.
The Seacoast team is practiced in offering thoughtful perspective on strategic and operational considerations that often accompany a business experiencing growth. We pride ourselves on providing responsive, flexible, and highly-tailored solutions across a variety of security types (primarily subordinated debt, preferred stock and common stock), and look for risk-adjusted rates of return commensurate with being a value-added partner rather than simply a provider of capital. As such, we look as much to long-term value creation as we do at month-to-month performance, understanding that the path to success is not always linear and that guided patience through macroeconomic cycles, industry conditions, company-specific factors and exogenous events often reaps long-term benefits.
Having invested over $350MM in 65+ companies since our founding in 1994, we are one of the longest-standing and most experienced lower middle market investment funds in the United States, and one of the only funds with a singular focus on sponsorless non-control investing. We have consciously chosen to entrench ourselves in this market because we genuinely enjoy working with the management teams, employees, advisors and other constituents who comprise it, and perhaps in its simplest form, we think it’s much more fun.