Mosaic Capital Partners

What Mosaic Capital Partners does

Mosaic Capital Partners is a Charlotte, North Carolina-based private equity firm founded in 2013 that operates a proprietary investment model — the PE-ESOP (Private Equity Employee Stock Ownership Plan) buyout — targeting lower middle market companies with $5–15 million EBITDA. Its core differentiation is structural: Mosaic raises fund capital and provides full cash proceeds to selling shareholders while the ESOP trust acquires the company on behalf of employees, eliminating the seller-financed note that conventional ESOP transactions require. The firm also executes Employee Ownership Trust (EOT) buyouts as an alternative path to broad-based employee ownership. Mosaic manages two flagship funds — Mosaic Capital Investors I LP (inaugural, $164M) and Mosaic Capital Investors II SBIC LP ($205M closed November 2025) — bringing total AUM to $370M, and has executed 17 platform investments across business services, niche manufacturing, and consumer products and services, creating or supporting more than 3,000 employee owners.

Revenue is generated through a traditional private equity model: management fees on committed and invested capital, plus carried interest on realized exits such as the November 2025 sale of NuSource Financial to Convergint. The operating team is intentionally lean (1–10 employees per firmographic data, with six partners and a small group of principals, associates, and VPs based in Charlotte). Go-to-market is exclusively relationship-driven and outbound: direct outreach by the Managing Partner and VP of Business Development to lower middle market business owners, supported by a referral network of investment banks, business brokers, and specialist financial advisors such as Quarton International, Stout, ICG Capital Securities, Stifel, and Capstone Partners. Mosaic is SBIC-licensed and partners with impact-oriented and institutional co-investors including Lafayette Square, Morgan Stanley Private Credit, Impact Engine, Star Mountain Capital, and a syndicate of commercial banks, lowering its cost of capital and enabling the firm to serve a transaction size ($10–25M equity check) often underserved by larger PE funds.

Name

Mosaic Capital Partners

Legal name

Mosaic Capital Partners LLC

Website

http://www.mosaic-cp.com/

Company type

Private

Founded year

2011

Operating status

Operating

Headcount range

1–10 employees

Short description

Mosaic Capital Partners is a Charlotte-based private equity firm that pioneered the PE-ESOP buyout model, providing full cash exits to lower middle market business owners while transitioning portfolio companies to employee ownership across two funds totaling $370M AUM.

Ownership category

akta.pro rank

Product category

Private Equity / ESOP Investment Services

NAICS

Portfolio Management and Investment Advice (523940), Other Financial Investment Activities (5239)

SIC

Investment Advice (6282)

akta.pro primary industry

Micro-PE / Lower Middle Market ETA Funds (FSANALAG)

Keywords

• Private equity firm
• ESOP buyouts
• Mezzanine debt financing
• Lower middle market
• Employee ownership

Headquarters

HQ city

Charlotte

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. Fund Management / Carried Interest: Private equity fund management model generating returns through management fees and carried interest on realized exits of portfolio companies. Fund II closed at $205M total capital. Total AUM across two funds is $370M.

Go-to-market motion1 record

Distribution channels2 records

Marketing channels4 records

Core offering

Mosaic Capital Partners is a private equity firm that provides PE-ESOP and EOT buyout financing for lower middle market companies with $5-15M EBITDA across business services, niche manufacturing, and consumer sectors. The firm raises dedicated funds, structures ESOP transactions as buyer, provides full cash proceeds to selling shareholders, and transitions portfolio companies to 100% employee ownership — making the company income tax-exempt post-transaction. Mosaic manages two SBIC funds (Fund I at $164M, Fund II at $205M closed November 2025) and has executed 17 platform investments creating 3,000+ employee owners.

Product overview

Mosaic Capital Partners operates as a private equity firm offering employee ownership-focused investment products. The core offering is the PE-ESOP buyout model, which combines private equity capital with ESOP structures to provide full cash proceeds to selling shareholders while transitioning companies to employee ownership. The firm also offers EOT (Employee Ownership Trust) buyouts as an alternative structure. Mosaic manages two flagship funds: Fund I and Fund II (SBIC), both focused on acquiring lower middle market companies ($5-$15 million EBITDA) in business services, niche manufacturing, and consumer sectors through control transactions that create ESOP or EOT-owned companies.

Differentiator

Problem solved

Functional benefit

Products and services

• PE-ESOP Buyout The firm's signature investment vehicle combining private equity capital with ESOP transactions, providing full cash buyouts for selling shareholders while creating employee ownership structures. Targeted at lower middle market companies with $5-15M EBITDA.
• EOT (Employee Ownership Trust) Buyout Buyout structure utilizing an Employee Ownership Trust as an alternative to an ESOP for creating broad-based employee ownership in portfolio companies. Provides a parallel path to employee ownership transitions for sellers and companies where an ESOP is not the optimal vehicle.
• ESOP Mezzanine Financing Mezzanine debt and equity financing for companies implementing employee ownership transactions, targeting $5-$15M EBITDA lower middle market companies. Includes subordinated debt investments used alongside other financing sources to fund ESOP buyouts.
• Mosaic Capital Investors Fund I The firm's inaugural fund focused on ESOP leveraged buyouts in the lower middle market, creating employee owners through control transactions. Closed at $164M of capital.
• Mosaic Capital Investors Fund II (SBIC) Second SBIC fund with $205M total capital, continuing the firm's exclusive focus on employee ownership transactions for lower middle market companies with $5-15M EBITDA.

Quantifiable outcome

• 92% higher median household net wealth for employee owners vs. non-employee owners; 33% higher median income from wages; 2.5x greater retirement accounts.
• +4 more outcomes

Named customers12 records

Segments3 records

Ideal customer profiles3 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Partnerships

Eleven partnerships are on record, tiered minor and core.

• Bridget MellerminorOthers · 11 May 2026Bridget Meller joined Mosaic as Vice President of Business Development in 2026, leading business development activities and creating strategic relationships with intermediaries, business owners, and capital providers.
• Mark WeadonminorOthers · 10 December 2025Mark Weadon, CPA joined Mosaic as Vice President of Finance in December 2025, overseeing accounting, treasury, investor relations, and regulatory compliance with the SBA and SEC.
• Winston & StrawncoreImplementation/ SI/ Consulting Partner · 19 November 2025Winston & Strawn served as legal advisor to Mosaic for the closing of Fund II ($205M), providing legal counsel on fund formation, LP agreements, and regulatory matters.
• Stifel, Nicolaus & CompanycoreImplementation/ SI/ Consulting Partner · 10 November 2025Stifel, Nicolaus & Company served as NuSource Financial's financial advisor during the transaction. NuSource was exited to Convergint in November 2025.
• ConvergintcoreStrategic or Co-development Partner · 10 November 2025Convergint acquired NuSource Financial from Mosaic in November 2025, marking a successful exit from Mosaic's Fund II. NuSource provides branch transformation, ATM services, and security solutions for financial institutions.
• Capstone PartnerscoreImplementation/ SI/ Consulting Partner · 28 May 2025Capstone Partners served as Ickler Electric's financial advisor during the ESOP transaction.
• Signet Capital AdvisorscoreImplementation/ SI/ Consulting Partner · 11 August 2023Signet Capital Advisors served as Gautier Steel's financial advisor during the ESOP transaction, bringing the opportunity to Mosaic with the express intent of establishing an ESOP.
• ICG Capital SecuritiescoreImplementation/ SI/ Consulting Partner · 31 August 2021ICG Capital Securities served as Zero Waste Recycling's financial advisor during the ESOP transaction.
• StoutcoreImplementation/ SI/ Consulting Partner · 25 April 2019Stout served as Custom Profile's financial advisor during the ESOP acquisition transaction.
• ICG Capital SecuritiescoreImplementation/ SI/ Consulting Partner · 15 January 2019ICG Capital Securities served as Best Friends Pet Hotel's financial advisor during the ESOP acquisition transaction.
• ETAK SystemsminorOthers · 10 July 2017ETAK Systems, a portfolio company of Mosaic, acquired an Ohio-based provider of wireless tower construction and site acquisition engineering services, strengthening its operations through strategic acquisition.

Scale indicators5 records

Recent moves7 records

Expansion highlights5 records

Broad incumbents

• Pritzker Private Capital: Larger, family-office-backed lower middle market PE firm with broader sector mandate; relevant as a competitive incumbent whose check size now overlaps Mosaic's upper band.

Direct peers

• Capitala Group: Lower middle market PE firm focused on business services, niche manufacturing, and consumer companies; comparable to Mosaic in check size, sector mix, and direct-origination model (Mosaic's VP of Biz Dev previously worked in Capitala's origination team).
• Renovus Capital Partners: Lower middle market PE firm focused on education, business services, and healthcare services with $5-20M EBITDA targets; comparable in sector mix and value-creation playbook.
• Tonka Bay Equity Partners: Lower middle market PE firm investing in manufacturing, business services, and consumer companies in the $5-15M EBITDA range; directly comparable in target EBITDA band and sector focus.
• Patriot Capital: Lower middle market PE firm providing mezzanine and equity capital alongside sponsors in $5-25M deals; comparable in check size, co-investment posture (co-invested in Gautier Steel alongside Mosaic).
• Tecum Capital: Lower middle market PE firm focused on niche manufacturing and business services; has co-invested with Mosaic in ESOP transactions, indicating overlapping sourcing and underwriting theses.
• Beecken Petty O'Keefe & Company: Lower middle market PE firm focused on healthcare services and business services with $5-15M EBITDA targets; comparable in transaction size and operating-value-creation approach to Mosaic's portfolio.
• Lariat Partners: Lower middle market PE firm pursuing control investments in business services and niche industrial companies; highly comparable in target profile, transaction size, and direct-origination GTM.

Emerging players

• Inspiration Ventures: Impact-oriented PE firm making control investments in lower middle market companies with measurable social outcomes; overlaps with Mosaic's employee-ownership thesis and impact-LP base.
• Shared Capital Cooperative: National loan fund and consulting cooperative financing worker cooperatives and democratic employee ownership transitions; thematically aligned with Mosaic's employee-ownership mission and serves the same lower middle market exit lane.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat4 records

Key risks5 records

Key highlights7 records

Customer concentration

• LinkedInlinkedin.com/company/mosaic-capital-partners

Revenue estimate

Valuation estimate

Number of profiles

Profiles10 records

Funding overview

Funding rounds

Investors

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

M&A2 records

Investments6 records

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

Frequently asked questions about Mosaic Capital Partners