MSouth Equity Partners
MSouth Equity Partners, based in Atlanta, GA, with an office in Nashville, focuses on management buyouts of lower middle market companies primarily in the South. Founded in 2007, the firm has raised $2.2 billion across four funds and invested over $1.9 billion in 46 companies.
Company History
MSouth Equity Partners, based in Atlanta, GA, with an office in Nashville, was founded in 2007. As the successor to Cravey, Green & Wahlen, which was established in 1984, MSouth has built on a long history of investment success. With four funds raised amounting to $2.2 billion in capital, the company has invested over $1.9 billion in 46 companies. MSouth's consistent strategy focuses on management buyouts of lower middle market companies, particularly in the South.
Investment Philosophy
MSouth Equity Partners follows a growth-oriented philosophy, aiming to build equity value by increasing operating cash flow. The company has a consistent focus on lower middle market management buyouts, targeting companies with $25 to $250 million in enterprise value and $5 to $30 million in EBITDA. Approximately 90% of MSouth's investments are based in the South. By partnering with proven management teams and using prudent leverage specific to each company, MSouth aligns economic incentives by having its partners invest personally in every transaction.
Key Sectors
MSouth Equity Partners targets investments across several key sectors. These include business services, healthcare services, media & telecom, niche manufacturing, and specialty distribution. The company's investment strategy involves targeting platform companies within these sectors and seeking add-ons that fit strategically with existing portfolio companies. Their approach aims to create value through a targeted, sector-focused investment strategy.
Major Investments and Exits
MSouth Equity Partners has a record of multiple acquisitions and successful exits. Notable transactions include Engineered Products, LLC, Automated Equipment Holding Company, LLC, and Fern Exposition Services. These examples underscore the company's ability to identify and grow investments strategically. MSouth's approach involves partnering with management to provide resources and network support, fostering long-term value creation.
Regional Focus
MSouth Equity Partners predominantly targets investments in the Southern United States. Approximately 90% of the company's investments have been based in this region. This regional focus allows MSouth to leverage its local expertise and network to identify promising opportunities. By concentrating on the South, the firm aims to support and grow lower middle market companies within this geographical area.