Our Firm

Capital Partners^® is a private equity investment firm, founded in 1982, that invests in and develops mid-sized companies with EBITDA of $5 to $25 million. Since our inception, we have invested in more than 60 companies, with an average investment term greater than 6 years.

Our primary current investment structure is unique in the private equity industry. Our investments are structured as pass-through tax entities (LLC’s or limited partnerships) with low debt and equity generally providing half to three-quarters of the total capital structure.  Each acquisition is structured as a separate  pass-through entity.   The combination of a pass-through entity and low debt provides tax efficiency by eliminating income taxes at the new entity and allows us to pass through the income and excess cash flow to the investment partners on a quarterly basis.  By providing current and periodic cash distributions to our partners (including management investors), Capital Partners is under no pressure to prematurely sell an investment.  This allows business strategy and long-term goals to rule over an investment strategy requiring premature sales to generate cash returns and high investment IRR’s.  We would rather earn 20%+ per annum over a long number of years than 50% during a quick flip period.

Capital Partners invests in and partners with highly committed management teams of successful, profitable companies in a broad spectrum of industries, including:  food processing, consumer products, basic manufacturing, value-added distribution, out-sourced business services, healthcare services, for-profit education, crafts and hobbies, water infrastructure, and a number of other niche product and service areas.

Typically, Capital Partners will purchase a majority interest with management and, if desired, with other sellers maintaining a position.   Although the majority of our investments leave Capital Partners with majority ownership, we will consider minority investments in companies that are or can be structured as pass-through entities (i.e., LLC’s partnerships).

The participation of management as equity partners has been an important part of the long-term success of Capital Partners. In addition to desiring management to retain or purchase as much equity as possible, Capital Partners will structure additional equity incentives to include the appropriate managers. Capital Partners assists companies in their growth by providing active strategic support, particularly for add-on acquisitions, and is prepared to provide additional capital as required and supported by the circumstances.