High Street Capital (“HSC”) had much to celebrate last year. Here are a few of the highlights:
One New Fund: In June we closed our sixth fund (“Fund VI”) to continue the successful investing strategy we have employed for multiple decades. Like its predecessors, Fund VI seeks to invest in and grow differentiated, U.S.-based middle-market businesses by providing flexible capital options, contributing proven operating experience, and being a valued, committed partner. Fund VI will maintain the firm’s focus on companies with earnings before interest, taxes, depreciation, and amortization (“EBITDA”) ranging from $3 million to $15 million and is primarily targeting opportunities in niche manufacturing, business services, and value-added distribution sectors, where HSC has a track record of generating strong returns.
One New Platform: In December, alongside Wells Fargo Strategic Capital (“WFSC”) and the company’s current owners and managers, we invested in AHI Supply, an Alvin, TX-based market-leading manufacturer and supplier of quality construction products to distributors, builders, specialty contractors, and masons, among others, in the U.S. Southwest. This marks the first platform investment of Fund VI.
One Exit: In July we sold our interests in Suburban, a Fund V portfolio company and the market-leading provider of construction services including drywall, insulation, steel framing, and custom finish installation services across southern Wisconsin. This successful sale was the culmination of a thriving partnership between HSC and Suburban’s management team that began in 2019.
One Portfolio Company Add-On: In March, Fund V portfolio company Tramec acquired Johnson Welded Products, an Urbana, OH-based designer and manufacturer of premium custom steel and aluminum air reservoirs, ping tanks, purge tanks, and de-aeration tanks primarily for original equipment manufacturers of heavy-duty tractors. The transaction marked Tramec’s fourth add-on acquisition with HSC’s support since Tramec’s management-led recapitalization in September 2021.
Two New Team Additions: Investing team members Steve Natali and Steve McCutcheon joined the firm in January and August, respectively. They bring substantial additional horsepower to the investing team as we deploy our newly raised Fund VI. Each has valuable prior experience, including private equity investing, investment banking, and corporate M&A. We are excited for the future with our growing team.
Building on 2024: We look to continue the strong momentum we built in 2024 as we start 2025 and seek new platform investment opportunities in the areas of outsourced business services, niche manufacturing, and value-added distribution. Please contact us with businesses generating EBITDA between $3 million and $15 million where our capital, experience, and ideas could drive further growth.
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