Tregaron Capital Company

What is Tregaron Capital Company?

Tregaron Capital Company is a private investment firm that was formed in 2001 with a focus on small to medium-sized private companies located primarily in the western U.S.

The firm specializes in both mezzanine debt and equity investments, with typical investment amounts ranging from $2 to $5 million. Tregaron Capital looks for companies exhibiting EBITDA from $1 to $5 million and is currently investing out of Tregaron Opportunity Fund I, which is a $60 million fund closed in 2010.

Their target investment industries are diverse, including business services, information technology and data services, healthcare products and services, franchising, mature software and technology, light manufacturing, and value-added distribution. Tregaron Capital's investment thesis is focused on supporting growth, building businesses, and creating value through strategic partnerships and capital allocation.

They position themselves as flexible in their capital structure, which permits creative financing solutions and, at times, the ability to accomplish deals that other firms cannot. With the partners at Tregaron being the largest investors in the fund, there is a firm commitment to the investments and partnerships they form, believing that the best outcomes come from aligned interests.

They look to pair their capital, industry expertise, and resources with strong management teams looking to grow their business, gain partial liquidity, complete a strategic acquisition, or refinance existing debt. Tregaron also partners with company owners, executives, private equity sponsors, fundless and independent sponsors, and intermediaries. They offer equity co-investments or act as a debt provider, assisting with due diligence, transaction structure, and can provide introductions to service providers and senior lenders.

Their approach is collaborative, aiming to offer board level support post-transaction, and provide additional capital for further growth as necessary. Tregaron operates with a model that they describe as having originated from an independent sponsor, and thus they have maintained a flexible partnership approach.

For intermediaries, Tregaron ensures prompt and honest feedback, respects time, and if not the right fit for a deal, they assist with introductions. Additionally, they offer customary success fees to intermediaries working on the buy side or those who refer a company to them.