Private equity firm CapitalSouth Partners has raised $23.8 million for its fourth fund, expected to reach as much as $100 million.
The Charlotte firm disclosed the fund raise in securities filings. Founded in 1998, CapitalSouth makes debt and equity investments in lower middle-market companies that have potential for growth. Investments can be anywhere in the country but it focuses primarily on the South. The firm does not invest in startups.
CapitalSouth says it typically invests between $5 million and $25 million in a company; if syndicated with other investors, the firm’s commitment can go up to $40 million. Transactions are typically management buyouts, leveraged buyouts and capital investments to support growth initiatives. CapitalSouth has closed on more than 100 transactions since 2000 representing more than $2 billion in financing.
CapitalSouth does not focus on any particular industry but its investments have included companies in business services, retail, energy, health care and technology. The firm was an investor in Charlotte data center operator Peak 10, an investment the firm exited in 2010. Current North Carolina investments include Lexington-based Navis Global, which makes textiles manufacturing equipment.