Pine Street Capital Partners

What Pine Street Capital Partners does

Pine Street Capital Partners is a privately held, SBA-licensed mezzanine debt and minority equity investment firm founded in 2004 by Tim Welles and Michael Lasch. The firm focuses on the U.S. lower middle market, providing $5–20 million of subordinated debt (with or without warrants) plus up to $4 million of equity alongside debt to companies with $10–75 million of revenue and $3–10 million of EBITDA. It takes non-control positions, typically with board observation or seat rights, targeting management teams seeking capital for buyouts, recapitalizations, acquisitions, refinancings, and shareholder liquidity events. Preferred sectors include business services, manufacturing, value-added distribution, consumer, healthcare, food and beverage, and industrial.

The firm's core product is a series of SBIC-licensed limited partnership funds (PSCP I through PSCP IV). Pine Street has received three Small Business Investment Company licenses from the U.S. Small Business Administration (2011, 2016, 2023), granting it access to SBA-guaranteed debentures that lower its cost of capital and enable more competitive financing terms. PSCP IV closed at $203 million in September 2024, bringing cumulative capital raised since inception to over $425 million across 60+ platform companies.

The firm employs six professionals across offices in Wellesley, Massachusetts and Albany, New York, led by three Managing Partners (Lasch, Morris, Welles). Its go-to-motion is relationship-driven deal sourcing through investment banks, intermediaries, and a recurring network of co-investment partners (including Bay Capital, Eagle Private Capital, Digital Fuel Capital, Spring Capital, NewSpring Mezzanine, Salem Investment Partners, Kemper Corporation, Kain Capital, Harvest Capital Credit, Fulham & Company, Rudolph Capital, Advantage Capital Connecticut, and Red Fence Holdings). As a private investment firm, revenue is generated through management fees on committed/deployed fund capital and carried interest on successful exits, with deal-by-deal economic terms negotiated privately.

Name

Pine Street Capital Partners

Legal name

Pine Street Capital Partners

Website

https://pinecap.com

Company type

Private

Founded year

2004

Operating status

Operating

Headcount range

1–10 employees

Short description

Pine Street Capital Partners is a Wellesley, Massachusetts-based private investment firm founded in 2004 that provides $5–20 million mezzanine debt and minority equity to U.S. lower-middle-market companies with $10–75 million in revenue, operating through four SBIC-licensed funds totaling over $425 million raised since inception.

Ownership category

akta.pro rank

Product category

Mezzanine Debt & Private Equity

NAICS

Funds, Trusts, and Other Financial Vehicles (525), Other Financial Vehicles (525990), Portfolio Management and Investment Advice (52394)

SIC

Investors, Nec (6799), Miscellaneous Business Credit Institution (6159)

akta.pro primary industry

Mezzanine / Subordinated Debt (FSANADAC)

akta.pro secondary industries

Middle-Market Lending (FSANADAI), Private Credit / Direct Lending (FSAAAHAG), Large-Cap / Sponsor Finance Direct Lending (FSANADAJ)

Keywords

• Mezzanine debt financing
• Lower middle market investing
• Minority equity investment
• SBIC investment fund
• Private equity firm

Headquarters

HQ city

Wellesley

HQ country

United States

HQ region

North America

Offices2 records

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 and Carried Interest: As a private equity and mezzanine investment firm, PSCP generates returns through management fees on managed funds and carried interest (performance fees) from successful portfolio company exits. They invest capital from limited partners (institutional investors, family offices, and individuals) into middle market companies.

Go-to-market motion1 record

Distribution channels1 record

Marketing channels3 records

Core offering

Pine Street Capital Partners is a private investment firm that provides mezzanine debt and minority equity financing to established lower-middle-market companies in the United States. The firm structures $5-20 million subordinated debt investments, with or without warrants, alongside up to $4 million of equity, taking non-control positions in businesses with $10-75 million in revenue and $3-10 million in EBITDA. Capital is deployed through SBIC-licensed limited partnership funds to support buyouts, recapitalizations, acquisitions, management buyouts, refinancings, and corporate growth initiatives.

Product overview

Pine Street Capital Partners is a lower middle market mezzanine debt and equity investment firm founded in 2004. The firm operates three active investment funds (PSCP II, PSCP III, and PSCP IV) licensed as Small Business Investment Companies (SBICs). PSCP provides $5-20 million subordinated debt with or without warrants, plus up to $4 million equity alongside debt, targeting companies with $10-75 million revenue and $3-10 million EBITDA. Preferred industries include Business Services, Manufacturing, Value-added Distribution, Consumer, Healthcare, Food & Beverage, and Industrial sectors.

Differentiator

Problem solved

Functional benefit

Products and services

• Pine Street Capital Partners IV, LP (PSCP IV) Fourth fund vehicle licensed as a Small Business Investment Company (SBIC) that provides subordinated debt and minority equity capital to U.S. lower-middle-market companies, with target investments of $3-15 million per transaction. Intended for established companies seeking buyout, recapitalization, acquisition, or growth capital financing.
• Pine Street Capital Partners III, LP (PSCP III) Third fund vehicle providing mezzanine debt and minority equity investments to established companies with experienced management teams, structured as non-control positions with financial and operational covenants.
• Pine Street Capital Partners II, LP (PSCP II)

Quantifiable outcome

• Invested over $250 million in 52 privately held middle market businesses since inception
• +1 more outcomes

Named customers13 records

Segments1 record

Ideal customer profiles1 record

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Partnerships

One partnership is on record.

• Winston & Strawn LPminorOthersServed as legal advisor in the formation of PSCP IV.

Scale indicators5 records

Recent moves9 records

Expansion highlights6 records

Direct peers

• NewSpring Mezzanine Capital: Lower middle market mezzanine and minority equity provider that has co-invested alongside PSCP in multiple deals (Nelson Worldwide, Burnyzz). Directly comparable strategy, check size, and SBIC-style positioning in the same niche.
• Eagle Private Capital: SBIC-licensed private equity firm providing mezzanine and equity investments in lower middle market companies, co-invested with PSCP on Summit Sports. Closely aligned investment strategy and target company profile.
• Bay Capital Investment Partners: Private investment firm focused on middle market mezzanine and equity investments, co-invested with PSCP on Summit Sports. Directly comparable in product offering, check size, and target market.
• Spring Capital Partners: SBIC-licensed lower middle market mezzanine and minority equity fund; co-invested with PSCP on Power Technology Southeast acquisition. Directly comparable in fund structure, target deal size, and industry focus.
• Salem Investment Partners: Lower middle market mezzanine fund that has co-invested alongside PSCP on Nelson Worldwide and Burnyzz. Highly comparable in strategy, deal size, and SBIC-licensed model.
• Harvest Capital Credit: Business development company focused on lower middle market debt and equity investments; co-invested with PSCP on King Engineering Associates. Comparable in lending product, target company profile, and growth-stage financing approach.
• Advantage Capital: SBIC-licensed investment firm focused on lower middle market companies, co-invested with PSCP on Merrill Industries recapitalization. Directly comparable in SBIC structure and target segment.
• Farragut Capital Partners: Lower middle market mezzanine debt and equity provider that co-invested alongside PSCP on Burnyzz. Comparable in investment size range and target company characteristics.
• Digital Fuel Capital: Private investment firm making growth equity and buyout investments in lower middle market consumer and business services companies; has co-invested with PSCP on multiple deals (Summit Sports, Artifact Uprising, Artful Home). Highly comparable in sector focus and co-invest pattern.

Broad incumbents

• Stellus Capital Investment Corp: Publicly traded business development company providing senior and junior debt to private middle market companies. Larger and more diversified than PSCP, but operates in adjacent lower middle market lending space with similar deal sizes and target profiles.

Market position

Strengths4 records

Weaknesses4 records

Competitive moat5 records

Key risks5 records

Key highlights7 records

Customer concentration

• Xx.com/pinestreetcp
• LinkedInlinkedin.com/company/pine-street-capital-partners

Compliance1 record

Revenue estimate

Valuation estimate

Number of profiles

Profiles6 records

Funding overview

Funding rounds

Investors

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

M&A

Investments17 records

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

Frequently asked questions about Pine Street Capital Partners