CapStreet Group

What is CapStreet Group?

Established in 1990 and based in Houston, Texas, CapStreet Group is a private equity firm dedicated to investing in lower middle market companies, focusing on a variety of industries such as Software, IT, Education, Business Solutions, Hardware, Manufacturing, Food & Beverage, Logistics, Distribution, Life Science, Nanotechnology, and Oncology.

They are strategic investors primarily in Texas and other Sunbelt states, holding over $400 million in three investment funds. They seek to invest in industrial and diversified business service companies that demonstrate potential for scalable growth and have annual EBITDA between $3 million and $20 million.

CapStreet typically deploys $10 to $25 million of equity in transactions with enterprise values of less than $150 million, engaging in leveraged buyouts, going-private transactions, growth capital investments, and recapitalizations of privately held or family-owned companies. The firm's investment approach is rooted in transformative change through operational improvements and growth strategies underpinned by their Capvalue Framework. This Framework offers best practices, expert knowledge, and the necessary resources for businesses to amplify their growth trajectory and realize faster value creation.

It is designed to be flexible, adjusting to the unique evolution stages of their portfolio companies. CapStreet's strategy includes conducting intensive market research, building scalable platforms by investing in talent and technologies, and driving business transformation with a strategic roadmap and buy and build strategy, culminating in increased stakeholder value. Their testimonials from CEOs and founders of their portfolio companies illustrate the supportive, partnership-centric approach and the operational experience they deliver, ultimately translating into successful exits or sizeable growth.

The firm prides itself on creating transformative partnerships which have seen real success stories, such as impressive consolidations in the insulation distribution industry and substantial business development in healthcare and industrial sectors.