D2 Equity Capital

What is D2 Equity Capital?

D2 Equity Capital is a private investment firm that specializes in acquisitions, targeting lower-middle market businesses in various industries. They focus on investing in manufacturing, service, and distribution businesses that have an EBITDA between approximately $2 million and $10 million, along with smaller companies that are experiencing rapid growth.

D2 Equity Capital is interested in a range of industry segments, including industrial, aerospace and defense, oil and gas, engineered materials, clean-tech (such as alternative energy, energy efficiency, and water-related sectors), business services, consumer products, and other areas where the principals' experience can be leveraged.

The firm prioritizes the western and southwestern United States for its investments due to geographical proximity, which allows for more frequent on-site involvement by the principals.

Through a strategic partnership with Freestyle Investors, which is a family office based in San Diego, D2 Equity Capital has access to significant capital resources spanning multiple asset categories. Typically, they look for companies with annual revenues ranging from $10 to $50 million. In terms of capital deployment, D2 Equity Capital and their equity partner, Freestyle Capital, are prepared to invest equity of $3 to $20 million per transaction.

Their investment structures include majority and minority recapitalizations in private companies, growth capital investments, consolidations through acquisitions in fragmented industries, and the acquisition of corporate divestitures from small public companies.