Our Focus
HCAP Partners is a California-based private equity firm which has managed more than $200M across three funds providing mezzanine debt and equity to underserved lower middle market companies throughout California and the Western United States. The firm has invested in over 60 companies and is a partner of choice for businesses and private equity firms seeking capital for growth, acquisitions, and other strategic initiatives. HCAP Partners is a leader in the impact investing arena and has been recognized as an ImpactAssets 50 fund four years running. We invest in companies that have strong management teams, favorable industry dynamics, and strong growth potential. We look for:
Our Value
HCAP Partners provides creative debt and equity structures to serve the needs of the lower middle market, which are attractive to closely held companies and private equity firms seeking a collaborative, non-control, institutional investor. Through active engagement with its portfolio, the team at HCAP Partners provides value-added resources such as operational and financial guidance, capital raising, and strategic exit planning. Through its Gainful Jobs Approach, the firm works to facilitate a positive impact on underserved businesses, their employees, and their communities.
Typical Investment Structure
Our investments are typically structured as mezzanine debt with warrant options for minority equity participations, flexible amortization schedules, and flexible current vs. PIK interest. We consider a company’s individual needs to tailor alternative capital structures, which may include equity in the form of preferred or common stock, success fees, royalties, or a combination thereof.
Our Team
The management and investment team at HCAP Partners has a track record that includes over 70 years of industry experience in the lower middle market banking, private equity, and venture capital industries. As active board participants, we work with our portfolio companies to help strengthen top management, increase operational efficiencies, and implement corporate governance systems.