The CapStreet Group

What The CapStreet Group does

The CapStreet Group is a Houston-based private equity firm founded in 1990 that invests in lower middle market business services companies, typically with $3 to $15 million of EBITDA. The firm partners with founder- or entrepreneur-owned businesses, primarily through majority investments while allowing founders to reinvest alongside the fund, and applies its proprietary Capvalue Framework — a repeatable methodology covering research, scalable platform building, and business transformation — to drive value creation across the portfolio. Since inception, Capstreet has raised more than $1.3 billion across five institutional funds, with Fund V closed at $500 million in December 2019, and has executed 50+ platform investments and 200+ add-on acquisitions.

The firm generates revenue through two streams: management fees charged on committed capital across its five institutional funds (a recurring, subscription-like model) and carried interest earned on successful portfolio company exits (a performance-linked, lumpy stream). Deal sourcing is relationship-driven, relying on direct outreach, intermediary referrals, and the firm's network of portfolio executives and advisors, with no public marketing channel beyond earned media and industry event participation. Capstreet is headquartered in the El Paso Energy Building in downtown Houston (1001 Louisiana Street, Suite 3200), is registered with the SEC as an investment adviser, and operates exclusively across the United States and Canada.

The current portfolio spans healthcare compliance SaaS (symplr, Surgical Notes — exit pending), insurance record retrieval (Ontellus — sold to Datavant August 2025), government procurement SaaS (PlanetBids), construction SaaS (hh2), automotive dealership technology (TradePending, HungerRush), and industrial services (ASR, TOPS Field Services, Allredi). The Capvalue Operating Executive Group — comprising functional CXOs in operations, revenue, technology, talent, and integration — is deployed across portfolio companies to accelerate value creation alongside portfolio management teams.

Name

The CapStreet Group

Legal name

Capstreet Group, LLC

Website

http://www.capstreet.com

Company type

Private

Founded year

1990

Operating status

Operating

Headcount range

11–50 employees

Short description

The CapStreet Group is a Houston-based private equity firm founded in 1990 that invests in lower middle market business services companies, primarily partnering with founder-owned businesses with $3-15 million of EBITDA through majority investments and its proprietary Capvalue Framework.

Ownership category

akta.pro rank

Product category

Private Equity / Investment Management

NAICS

Portfolio Management and Investment Advice (523940)

SIC

Investment Advice (6282)

akta.pro primary industry

Private Equity Buyout Fund-of-Funds (FSANAGAD)

Keywords

• Private equity investing
• Lower middle market
• Business services investments
• Buy and build strategy
• Founder partnership capital

Headquarters

HQ city

Houston

HQ country

United States

HQ region

North America

Offices1 record

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Operations, Marketing or Sales, Technology or R&D, Infrastructure

Revenue model

1. Management Fees: Capstreet generates management fees from its five institutional funds under management, charging fees on committed capital during the investment period.
2. Carried Interest / Performance Fees: Capstreet earns carried interest from successful portfolio company exits, aligning fund manager incentives with investor returns through the Capvalue Framework.

Go-to-market motion1 record

Distribution channels1 record

Marketing channels3 records

Core offering

The CapStreet Group is a Houston-based private equity firm that invests in lower middle market business services companies, primarily those owned by founders or entrepreneurs with $3 to $15 million of EBITDA. The firm makes majority equity investments and partners with management teams, providing growth capital, operational expertise, and strategic resources through its proprietary Capvalue Framework to drive business transformation and scale portfolio companies.

Product overview

The CapStreet Group is a Houston-based private equity firm that invests in lower middle market business services companies. The firm operates across multiple industries including software, tech-enabled services, and industrial business services. Rather than offering a traditional product platform, Capstreet provides investment capital and operational expertise through its proprietary Capvalue Framework, which offers industry best practices, access to subject matter experts, and technologies to help portfolio companies scale and create value. The firm's investment strategy focuses on partnering with founder or entrepreneur-owned businesses, typically with $3 to $15 million of EBITDA, primarily through majority investments.

Differentiator

Problem solved

Functional benefit

Products and services

• CapStreet Fund V A $500 million private equity fund available to qualified institutional investors for investment in lower middle market business services companies.
• Capvalue Framework A proprietary operational methodology that CapStreet applies to its portfolio companies to accelerate business transformation, drive scalable platform growth, and create long-term value through research, talent investment, and buy-and-build execution.

Quantifiable outcome

• 50+ platform acquisitions and 200+ add-on acquisitions since inception
• +1 more outcomes

Named customers8 records

Segments3 records

Ideal customer profiles2 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Partnerships

One partnership is on record.

• Mazda Digital Certified ProgramminorGTM or Marketing Partner · 14 October 2025TradePending (Capstreet portfolio company) was certified as an official partner in the Mazda Digital Certified Program, providing Mazda dealers with digital retail tools, co-op eligibility, OEM-negotiated pricing, and analytics.

Scale indicators7 records

Recent moves6 records

Direct peers

• Brentwood Associates: Los Angeles-based private equity firm investing in lower middle market consumer and business services companies, with comparable fund size ($500M-$1B range) and founder-friendly approach. Direct comparable — Kevin Johnson (Capstreet Partner) is a former Brentwood investment professional.
• Platte River Equity: Denver-based private equity firm focused on lower middle market business services companies with $3-15M EBITDA, directly overlapping Capstreet's target segment. Brian Hopkin (Capstreet VP) is a former Platte River investment professional.
• Insight Equity: Midland, TX-based private equity firm focused on industrial and business services companies in the lower middle market. Arti Patel (Capstreet Senior Associate) is a former Insight Equity professional. Direct comparable in sector focus and geography (Texas-based).
• Align Capital Partners: Dallas-based private equity firm targeting lower middle market business services and industrial companies. Vijay Senthilkumar (Capstreet Senior Associate) is a former Align Capital professional. Similar fund size and Texas-based footprint.
• Dorilton Capital: New York-based private equity firm investing in lower middle market industrial and business services companies. Landon Weis (Capstreet VP) is a former Dorilton Senior Associate. Comparable fund size and operational approach.
• McCarthy Capital: Omaha-based private equity firm with a focus on lower middle market business services companies. Brian Hopkin (Capstreet VP) is a former McCarthy Capital investment professional. Overlapping thesis and fund size profile.

Broad incumbents

• Genstar Capital: Larger San Francisco-based private equity firm investing in middle market software, business services, and financial services companies. A broader incumbent with overlapping target sector but typically larger deal sizes than Capstreet's $3-15M EBITDA sweet spot.
• Audax Group: Boston-based private equity firm with a strong lower middle market business services franchise and active buy-and-build strategy across hundreds of add-on acquisitions. Broader scale and similar operational playbook but materially larger fund sizes than Capstreet.
• The Jordan Company: New York-based private equity firm focused on middle market business services and industrial companies. Larger incumbent with overlapping sector thesis and operational value-add approach, but typically larger deal sizes.

Emerging players

• Aquiline Capital Partners: New York-based private equity firm focused on business services and financial services. Directly partnered with Capstreet as a co-investor in the 2019 Ontellus recapitalization, providing concrete evidence of comparable investment style and sector overlap.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks6 records

Key highlights7 records

Customer concentration

• LinkedInlinkedin.com/company/thecapstreetgroup

Revenue estimate

Valuation estimate

Number of profiles

Profiles15 records

Subsidiaries1 record

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A8 records

Investments6 records

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about The CapStreet Group