Recurring Capital Partners

What is Recurring Capital Partners?

Recurring Capital Partners, headquartered in Austin, Texas, is a private equity firm that specializes in providing debt and equity capital specifically tailored for companies with software as a service (SaaS) and recurring revenue model technology in the IT and TMT sectors.

Their financial solutions are geared toward fostering smart growth in their portfolio companies by offering straight-forward growth debt financing, which allows software founders to capitalize on growth opportunities without the dilution or rigorous governance of equity fundraising.

This approach helps companies preserve equity stakes, maintain maximum optionality by not hindering the ability to raise additional equity, recapitalize, or sell on their timelines, and ensure that the enterprise value growth accrues to current owners.

Recurring Capital Partners identifies a 'Strike Zone' by targeting B2B SaaS businesses within the $4-30 million Annual Recurring Revenue (ARR) range, featuring strong retention rates, high gross margins, no significant customer concentration, and substantial management ownership stake, primarily in the U.S., Canada, or the UK.

RCP's investment thesis revolves around advocating for prudent cash burn and backing companies that exhibit financial prudence and market potential.

The firm has deployed over $300 million across 60 B2B SaaS companies, highlighting their robust track record.

With a promise of no personal guarantees and the provision of subordinate debt to complement existing bank lines of credit, RCP extends its investment portfolio with a collaborative approach and has an impressive history of follow-on investments, ranging from $1-20 million, adapting to the growth stages of their client companies.