Convergent Capital

What is Convergent Capital?

Convergent Capital is an investment fund based in Minneapolis, Minnesota, that specializes in providing growth and acquisition capital to small and middle-market companies. The firm operates with a focus on long-term, sustainable growth across a broad spectrum of industries, including but not limited to software, biotech, business solutions, hardware, energy, material science, medical devices, healthcare, and wellness.

Established in 1998, they have managed to accumulate assets under management worth approximately $225 million. Their fund, Convergent Capital Partners I, is structured as a Small Business Investment Company (SBIC), and it capitalizes on opportunities through various types of financial instruments such as debt, equity, and mezzanine financing. Convergent Capital is adept at structuring investments to support recapitalizations, management buy-outs (MBO), leveraged buy-outs (LBO), consolidations, add-on financings for existing portfolio companies, acquisitions, recapitalizations, restructuring, and special situations.

They specifically target firms that have annual revenues in excess of $5 million and a positive cash flow from operations. Their investment size ranges from $3 million to $12 million, with a preference for deals between $2 million to $8 million, but they also possess the capability to co-invest in larger financings.

Convergent Capital seeks companies that meet the U.S. Small Business Administration's definition of a small business, which includes a net worth of $18 million or less and an average net income of $6 million or less over the past two years.

They invest in diverse industries and are open to investing in companies located across the United States. Their website provides additional insight into their commitment to being a valued resource to lower middle market companies, with a mission to make a significant impact on small businesses, the people within them, and their communities.