Investing in the South, lower middle-market focus.
Overview
MSouth Capital provides customized debt and minority equity financing solutions to lower middle market companies based primarily in the South. Our capital supports acquisitions, recapitalizations, refinancings, generational transfers, internal growth and other corporate initiatives. Based in Atlanta, Georgia, we have a long history of successfully investing in the lower middle market, delivering resources typically only available to larger firms. A key element of our investment strategy is partnering with proven management teams that have a track record of value creation.
MSouth Capital is a portfolio company of MSouth Equity Partners IV, L.P., an investment partnership managed by MSouth Equity Partners, LLC. Based in Atlanta, with an office in Nashville, MSouth Equity Partners, LLC., is a PE firm that has raised $2.2 billion of capital across four funds.
What We Offer
We take a partnership approach with management to assist in implementing a range of strategic, operation and financial functions to help create value.
Growth
Prioritization of strategic objectives
Mergers & acquisitions
Geographic expansion
Customer and partner introductions
Sales & markets strategy and execution
Product / service strategy and roadmap
Human Capital
Organization structure
Compensation and incentives
Bench strength and talent enhancement
Recruiting
Performance Improvement
KPI development
Enhanced financial reporting
Salesforce effectiveness
Operational scaling
Marketing and channel optimization
Procurement and supply chain optimization
Pricing strategy
Financial & Capital Markets
Optimization of capital structure
Capital markets access and strategy
Tax structuring
Our Philosophy
Back Proven Management Teams
The cornerstone of our investment philosophy is partnering with outstanding management teams. We believe that the most critical element in any successful investment is the people. For this reason we attempt to partner with successful, experienced management teams. We expect these individuals to have significant ownership stakes in their company, to share our commitment to stable and sustainable growth and to maintain the highest standard of integrity.
Align Economic Incentives
While most of the capital committed will typically be in the form of a debt instrument, we are also interested in providing equity investments (up to 49% ownership). We believe minority equity ownership strengthens our shared commitment to success and ensures that our interests are aligned with those of our management partners.
Be a Trusted Capital Partner
We look to management to run the business while we aim to be an asset to management as a knowledgeable, interested, fair and trusted capital partner. Generating consistent growth requires collaboration. We are open and involved, and encourage frequent informal communication with our management partners. Our role is to support management, and we will leverage our resources and network to help create value where we can.
At-A-Glance
$3 - $10M
EBITDA
< $30M
Debt Investment
< $10M
Minority Equity
Investment Criteria
We seek to be a trusted capital partner to proven management teams
Strategic Fit
Excellent management team
Located in the South
Strategic use of capital proceeds
Lower Middle Market Focus
At least $3M of EBITDA
Up to $30M Check size
- Larger checks through partnerships
Flexible and customized structures
Financial
Established history of profitability
Predictable cash flows
Strong free cash flow conversion
Portfolio
Business Services - Tax Advisory
$12 Million Subordinated Debt and Common Equity
Buyout Texas - 2021
Commercial Services - Landscaping
$19.5 Million Senior Term Debt, Preferred Equity, Common Equity
We are a private equity investment firm that provides equity capital and expertise to support management teams in acquisitions and recapitalizations of lower middle market companies typically valued between $25 and $200 million. Based in Atlanta with an office in Nashville, we invest primarily in the South with a consistent focus on management buyouts of companies in sectors where we have significant investment, management and transactional experience. We invest with the objective of increasing operating cash flow through growth initiatives and active ownership. A key element of our investment strategy is partnering with proven management teams to create value. Founded in 2007, MSouth manages $2.2 billion across four funds. MSouth is the successor to Cravey, Green & Wahlen, which was founded in 1984.
Mr. Izzo has a long-tenured career in commercial banking, private debt and private equity.
Prior to MSouth Capital, Mr. Izzo served as Managing Director of Fidus since 2018. Prior to joining Fidus, Mr. Izzo was employed by Ares Management as Managing Director and Head of the Washington, D.C. office with coverage of the Mid-Atlantic and Texas territories.
Prior to the acquisition by Ares, Mr. Izzo was Managing Director of Allied Capital Corporation leading a team managing a $1 billion credit portfolio. In addition, Mr. Izzo served as Credit Committee Chairman for five Allied Capital Senior Debt CLOs.
Mr. Izzo also held senior corporate finance and credit positions at Banc One Capital Markets and NationsBank. Mr. Izzo holds a B.B.A. from the University of Notre Dame and an M.B.A. from the Red McCombs School of Business at the University of Texas at Austin.
Mr. Crevello is a seasoned financial professional with a strong background in investment banking, private equity, and private debt.
Prior to MSouth Capital, Mr. Crevello was a Managing Principal at Forefront Capital Partners, LLC, an Atlanta based investment firm providing debt and minority equity to closely held businesses.
Prior to Forefront, Mr. Crevello was with Stellus Capital Management (and its predecessor, D.E. Shaw & Co.) in Washington, DC., since 2006. There he originated, diligenced and executed middle market debt and equity investments.
Prior to Stellus, Mr. Crevello held roles as an Associate with Blackstone Group’s Restructuring & Reorganization practice (New York City), an Associate at Thayer Capital Partners (Washington, DC) and as a Financial Analyst in Merrill Lynch’s Merger and Acquisitions group (New York City).
Mr. Crevello holds a BA in Political Science from Duke University and an MBA from the Wharton School of Business at the University of Pennsylvania.
Mr. McCuen has a strong background in investment banking, private debt, and private equity.
Prior to MSouth Capital, Mr. McCuen was a Vice President at The Stephens Group, LLC (Little Rock) since 2015.The Stephens Group invests the capital of the Arkansas-based Stephens family. There he focused on control investments in middle-market commercial and industrial products and services businesses.
Mr. McCuen began his career as an Investment Banking Analyst at Raymond James & Associates (Atlanta) where he advised on private placements of debt and equity capital across various industries.
Mr. McCuen hold a BSBA in Finance from Georgia Tech.
Brooks Layson
Senior Associate
Prior to MSouth Capital, Mr. Layson was an investment banking Analyst in the FinTech and Financial Services Group of Keefe, Bruyette, & Woods. There he focused on M&A transactions and private placements for companies in various financial services sectors.
Mr. Layson holds a BBA from the University of Georgia where he was a Presidential Scholar and Hope Scholarship recipient.
Dec 02, 2020
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