Sole Source Capital
Sole Source Capital is a Dallas-based lower-middle market private equity firm founded in 2016 that invests in founder-owned businesses, corporate carve-outs, and management buy-outs with EBITDA under $20 million across North American industrial sectors, executing a buy-and-build strategy with on-site operational engagement.
- Company typePrivate
- Founded2016
- HeadquartersDallas, United States
- Headcount11–50
- GTM typeB2B
- OfferingServices
What Sole Source Capital does
Sole Source Capital LLC is a Dallas-based, operationally-focused lower-middle market private equity firm founded in June 2016 by David Fredston. The firm invests in privately-owned industrial businesses, founder-led companies, corporate carve-outs, and management buy-outs with EBITDA typically between $1 million and $20 million. Its investment approach combines flexible capital structures with hands-on operational engagement through dedicated in-house Operating Principals and a codified operational methodology branded as "The SSC Way," which deploys initiatives including strategic sourcing, LEAN Six Sigma, technology and digitization, and supply chain optimization across portfolio companies.
Since inception, Sole Source Capital has executed more than 40 investments across three funds, with the most recent platform deployment (Brite) marking the first investment from SSC Partners Fund III. The portfolio spans 13+ platform companies across cybersecurity, environmental services, electrical testing, seafood distribution, label and identification products, supply chain technology, flexible packaging, foodservice distribution, oilfield services, offshore energy, and contract manufacturing. Notable platforms include Peak Technologies, Dallas Plastics, Lee Fish, GrayMar Environmental, PowerX, I.D. Images, and Westwood Laboratories. The firm generates revenue through management fees on committed or invested capital and carried interest on realizations above specified thresholds. Limited partners access reporting through a dedicated investor portal at ssc.arkpes.com.
The firm employs a referral-fee-driven direct origination model targeting founders, family-owned businesses, and corporate divestiture candidates across North America (United States and Canada). Leadership comprises David Fredston (Founder/CEO, ex-Gores Group, Goldman Sachs), Scott Sussman (CIO, ex-SAC Capital, Lehman Brothers), Bruno Adoric (CFO/COO, ex-Standish Management, JP Morgan), and Dewey Turner III (Chairman, ex-Clearlake Capital, Gores Group, Crane Aerospace). In 2025, Pitchbook recognized SSC as the #1 performing private equity manager across Global Buyout, Global Buyout – Middle Market, and North America Private Equity categories in its 2024 Manager Performance Score League Tables, and the firm has appeared on Inc.'s Founder-Friendly Investors list for seven consecutive years.
Sole Source Capital firmographics
Firmographics- Name
- Sole Source Capital
- Legal name
- Sole Source Capital LLC
- Website
- https://www.solesourcecapital.com
- Company type
- Private
- Founded year
- 2016
- Operating status
- Operating
- Headcount range
- 11–50 employees
- Short description
- Sole Source Capital is a Dallas-based lower-middle market private equity firm founded in 2016 that invests in founder-owned businesses, corporate carve-outs, and management buy-outs with EBITDA under $20 million across North American industrial sectors, executing a buy-and-build strategy with on-site operational engagement.
- Ownership category
- akta.pro rank
Sole Source Capital industry classification
Industry- Product category
- Private Equity / Lower-Middle Market Investment
- NAICS
- Other Investment Pools and Funds (5259)
- SIC
- Miscellaneous Business Credit Institution (6159)
- akta.pro primary industry
- Corporate Strategic Real Assets & Infrastructure Venture Investing (FSANAHAN)
Keywords
Where Sole Source Capital is headquartered
LocationHeadquarters
- HQ city
- Dallas
- HQ country
- United States
- HQ region
- North America
Offices2 records
Markets served
Sole Source Capital business model
Business model- GTM type
- B2B
- Offering type
- Services
- Cost components
- Personnel, Operations, Marketing or Sales, Others
Revenue model
- Management Fees: Private equity management fees charged on committed or invested capital to cover fund operations and oversight.
- Carried Interest / Performance Fees: Performance-based carried interest earned when portfolio investments generate returns above specified thresholds, aligning manager and investor interests.
Go-to-market motion1 record
Distribution channels1 record
Marketing channels4 records
Sole Source Capital product offering
Product offeringCore offering
Sole Source Capital is an operationally-focused, lower-middle market private equity investment firm that acquires controlling interests in privately-held industrial businesses, founder-owned companies, corporate carve-outs, and management buy-outs with EBITDA under $20 million. The firm invests capital directly, partners with management teams, and applies a proprietary operational methodology (the "SSC Way") to drive operational improvement, organic growth, and strategic acquisitions across its portfolio companies in North America.
Product overview
Sole Source Capital is a lower-middle market private equity investment firm, not a product company. The firm does not offer a unified software product or platform. Rather, its core offering is investment capital and operational expertise to partner with private and founder-owned companies through buy-and-build strategies. The portfolio companies—Brite, GrayMar Environmental, PowerX, Lee Fish, I.D. Images, Peak Technologies, Dallas Plastics, Supply Chain Services, Worldwide Produce, Individual FoodService, Premier Flow Control, Cantium, and Westwood Laboratories—represent distinct industrial and business services companies across sectors including cybersecurity, environmental services, electrical testing, seafood distribution, label products, supply chain technology, flexible packaging, produce distribution, foodservice distribution, oilfield services, offshore energy, and contract manufacturing. These are not modules of a unified platform but independent operating companies within the SSC investment portfolio.
Differentiator
Problem solved
Functional benefit
Products and services
- Lower-Middle Market Private Equity Investment Control-equity private equity investments in privately-held industrial companies with EBITDA between $1-20 million, targeting recession-resistant assets with secular tailwinds and supporting them through buy-and-build consolidation strategies. The service is for founders, family owners, and corporate parent companies seeking a capital and operating partner.
- Corporate Carve-Out Execution
Companies that use Sole Source Capital
Customer profileSegments3 records
Ideal customer profiles3 records
Sole Source Capital technology and API
TechnologyTechnology focussed No
API detail
- Has API
- No
- API docs
- API detail
Core technology
AI maturity
App detail
Sole Source Capital partnerships and signals
Strategic signalScale indicators4 records
Recent moves6 records
Expansion highlights5 records
Sole Source Capital competitors and assessment
Company assessmentDirect peers
- The Gores Group: Lower-middle market private equity firm specializing in corporate carve-outs and operational transformation. Direct peer because Sole Source Capital's founder David Fredston and Chairman Dewey Turner III both previously held senior roles at The Gores Group, and SSC targets the same transaction types (carve-outs, founder-owned businesses) at similar EBITDA sizes.
- Wynnchurch Capital: Lower-middle market private equity firm focused on operational value creation in middle-market companies. Direct peer due to comparable deal size, lower-middle market industrial focus, and operationally-led investment approach aligned with SSC's SSC Way methodology.
- Industrial Opportunity Partners: Lower-middle market private equity firm focused exclusively on industrial manufacturing and distribution businesses. Direct peer given near-identical target profile (industrial, sub-$20M EBITDA, operational improvement, founder/business owner relationships).
- Aterian Investment Partners: Private equity firm focused on lower-middle market industrial and business services companies through buy-and-build strategies. Direct peer because SSC and Aterian pursue the same fragmented-industrial consolidation thesis with similar EBITDA-size platforms and add-on cadence.
- Lee Equity Partners: Lower-middle market private equity firm focused on business services and industrial technology companies. Direct peer due to overlapping target size, sponsor-led carve-out and founder-owned business strategy, and operational value-add orientation.
- Kainos Capital: Lower-middle market private equity firm focused on founder-owned and family-owned businesses in food, consumer, and services. Comparable given overlapping carve-out / founder-owned strategy, similar EBITDA-size targets, and operationally-oriented value creation model.
- Platte River Equity: Lower-middle market private equity firm focused on industrial and infrastructure-related businesses. Direct peer given overlapping industrial sector focus, sub-$20M EBITDA platform sizes, and operational-improvement orientation aligned with SSC's SSC Way.
Broad incumbents
- Clearlake Capital Group: Larger alternative investment platform spanning private equity, credit, and special situations. Comparable because SSC's Chairman Dewey Turner III was previously Principal of Portfolio Operations at Clearlake, and Clearlake operates a similar operationally-led industrial playbook at a larger scale.
- Olympus Partners: Middle-market private equity firm focused on business services, consumer, and industrial sectors. Comparable because Olympus pursues buy-and-build in fragmented industrial end markets with comparable platform sizes, operating as a broader incumbent in the same sub-sector.
- Stonepeak Partners: Larger private equity firm focused on infrastructure, energy transition, and industrial businesses. Comparable as a broader incumbent with overlapping industrial carve-out capabilities, although Stonepeak typically operates at a higher average equity check size than SSC's lower-middle market focus.
Market position
Strengths4 records
Weaknesses4 records
Competitive moat4 records
Key risks5 records
Key highlights6 records
Customer concentration
Sole Source Capital social profiles
Digital presenceSole Source Capital financial estimates
Financial estimateRevenue estimate
Valuation estimate
Sole Source Capital leadership team
Management profileNumber of profiles
Profiles4 records
Sole Source Capital subsidiaries and ownership
Company hierarchySubsidiaries13 records
Sole Source Capital funding detail
Funding detailFunding overview
Funding rounds1 record
Investors1 record
Funding detail is available on the Subscription and Enterprise plan.Contact sales →
Sole Source Capital M&A and investment
M&A and investmentM&A10 records
Investments
M&A and investment is available on the Subscription and Enterprise plan.Contact sales →
Frequently asked questions about Sole Source Capital
What does Sole Source Capital do?
Sole Source Capital is an operationally-focused, lower-middle market private equity investment firm that acquires controlling interests in privately-held industrial businesses, founder-owned companies, corporate carve-outs, and management buy-outs with EBITDA under $20 million. The firm invests capital directly, partners with management teams, and applies a proprietary operational methodology (the "SSC Way") to drive operational improvement, organic growth, and strategic acquisitions across its portfolio companies in North America.
Is Sole Source Capital a public or private company?
Sole Source Capital is a private company. It is classified as management employee owned and is currently operating.
When was Sole Source Capital founded?
Sole Source Capital was founded in 2016. It employs 11 to 50 people.
Where is Sole Source Capital based?
Sole Source Capital is headquartered in Dallas, United States, in the North America region.
How does Sole Source Capital make money?
Two revenue lines are on record. Management Fees are the primary driver. The others are carried Interest / Performance Fees.
Who are Sole Source Capital's main competitors?
Direct peers on record are The Gores Group, Wynnchurch Capital, Industrial Opportunity Partners, Aterian Investment Partners, Lee Equity Partners, Kainos Capital and Platte River Equity. Broad incumbents are Clearlake Capital Group, Olympus Partners and Stonepeak Partners.
Does Sole Source Capital have an API?
No public API is recorded for Sole Source Capital.
What industry is Sole Source Capital in?
Sole Source Capital's product category is Private Equity / Lower-Middle Market Investment. Its primary akta.pro industry code is FSANAHAN, Corporate Strategic Real Assets & Infrastructure Venture Investing. Its NAICS code is 5259 and its SIC code is 6159.