Fundamental Capital

What is Fundamental Capital?

Founded in 2004, Fundamental Capital is a private equity firm that specializes in investing in small to mid-sized growth companies, primarily in the United States with a preference for the Western U.S. and Hawaii. They focus on the sectors of Software, IT & TMT, BioTech, Business Solutions, Hardware & Manufacturing, Retail & E-Commerce, HealthTech & Fitness, Material Science, and Medical Devices & Hospital Services.

The firm targets companies generating revenue between $5 million and $50 million, with an EBITDA of $2 million or greater for buyouts and those that are cash flow positive. The industries of interest include Manufacturing, Services, Distribution, Retail, and Consumer Products businesses.

Fundamental Capital is not just an investor; they bring hands-on strategic and operational direction to help management teams realize their full potential. With their team of experienced Investment Professionals, Operating Partners, and Founding Investors, they offer guidance beyond capital investment, including leadership, strategic and operational resources, especially for owners looking to transition from their businesses.

They are committed to providing patient, long-term capital to support existing management teams. Since 2005, the firm has invested over $20 million in four businesses, with a cumulative revenue of approximately $100 million. Their investment philosophy is to create flexible transaction structures designed to meet the current and future capital needs of their portfolio companies.

Typically, Fundamental Capital seeks to invest $2 million to $10 million in each transaction, generally in the form of common and preferred stock.