Farragut Capital Partners

What Farragut Capital Partners does

Farragut Capital Partners is a privately held lower middle market investment firm founded in 2011 and headquartered in Chevy Chase, Maryland. The firm provides mezzanine debt and equity capital to U.S. companies with at least $2M in EBITDA, with individual deal sizes typically ranging from $2M to $15M and a 5-7 year investment horizon. Farragut invests across six core verticals: business services, industrial services, manufacturing, value-added distribution, healthcare, and consumer, and structures investments as co-investments alongside private equity sponsors, independent sponsors, family offices, and senior lenders. The firm operates through SBIC-licensed fund vehicles, with its third SBIC fund closing at $263M in April 2025, bringing cumulative invested capital to $511M across 75 portfolio investments, of which 45 remain active. Recent portfolio activity includes Resolvion (February 2026), Mainstage Theatrical (April 2026), and prior holdings in Atlas Executive Consulting (January 2022), with add-on M&A activity at the portfolio level such as Douglas Guardian's acquisition of Quiktrak (July 2023). Revenue mechanics derive from management fees on committed fund AUM and carried interest on realizations, supported by a lean team of 1-10 employees.

Name

Farragut Capital Partners

Legal name

Farragut Capital Partners, Inc.

Website

https://farragutcapitalpartners.com

Company type

Private

Founded year

2011

Operating status

Operating

Headcount range

1–10 employees

Short description

Farragut Capital Partners is a privately held lower middle market investment firm that provides $2M-$15M of mezzanine debt and equity capital to U.S. companies with $2M+ EBITDA, operating through SBIC fund vehicles and co-investing with PE sponsors across business services, industrial, healthcare, manufacturing, distribution, and consumer verticals.

Ownership category

akta.pro rank

Product category

Private Debt and Equity (Mezzanine)

NAICS

All Other Financial Investment Activities (52399), Other Investment Pools and Funds (5259)

SIC

Miscellaneous Business Credit Institution (6159)

akta.pro primary industry

Multi-Sector / Generalist Growth Equity (FSANACAO)

Keywords

• Mezzanine debt financing
• Private equity capital
• Subordinated debt investment
• Lower middle market
• Growth capital funding

Headquarters

HQ city

Washington

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, Others

Revenue model

1. Mezzanine Debt Returns: Returns generated from subordinated debt investments in portfolio companies, including interest income and origination fees. Mezzanine debt sits between senior debt and equity in the capital structure.
2. Private Equity Returns: Returns from equity co-investments alongside mezzanine financing, typically through preferred equity or common equity positions with potential for capital appreciation over a 5-7 year investment horizon.

Pricing tiers

Go-to-market motion1 record

Distribution channels1 record

Marketing channels4 records

Core offering

Farragut Capital Partners is a privately held investment firm providing subordinated (mezzanine) debt and private equity co-investments to entrepreneurs, business owners, private equity firms, and independent sponsors. Investments of $2 million to $15 million per deal fund growth, acquisitions, recapitalizations, management buy-outs, generational transfers, and ownership transitions. The firm targets proven, asset-light companies with EBITDA of $2 million or greater across business services, industrial services, manufacturing, value-added distribution, healthcare, and consumer sectors, deploying capital through SBIC-licensed fund vehicles over a 5-7 year horizon.

Product overview

Farragut Capital Partners is a privately held investment firm offering a unified capital solution combining subordinated debt (mezzanine financing) and private equity co-investments. Their primary investment vehicles include Farragut SBIC Fund III, LP (their latest $263 million SBIC fund), with deal sizes ranging from $2 million to $15 million targeting companies with $2 million or greater EBITDA. The firm focuses on business services, industrial services, light manufacturing, value-added distribution, healthcare, and consumer sectors, with a 5-7 year investment horizon supporting growth financings, recapitalizations, buyouts, and debt refinancings.

Differentiator

Problem solved

Functional benefit

Products and services

• Mezzanine Debt Financing Subordinated debt financing providing capital for growth, acquisitions, recapitalizations, management buy-outs, and ownership transitions, with investment sizes of $2 million to $15 million per deal and a 5-7 year investment horizon. Targeted at proven, asset-light lower middle market companies with EBITDA of $2 million or greater.
• Private Equity Co-Investment Equity co-investments structured alongside mezzanine debt financing to support proven, asset-light companies with committed management teams and potential for significant growth in value. Typically deployed as preferred equity or common equity alongside PE sponsors, independent sponsors, or management teams.
• Farragut SBIC Fund III, LP Small Business Investment Company (SBIC) fund vehicle with $263 million in capital, representing Farragut's latest and largest SBIC fund, deploying mezzanine debt and equity into U.S. lower middle market companies. Investors include U.S. commercial banks, family offices, high net worth individuals, and asset managers.
• Unitranche Debt Financing Unitranche debt and equity investments delivered as a single-tranche financing solution for lower middle market transactions, used in deals such as Uptime USA, MALCO, NEMA Enclosures, Blue Ocean Brands, Peachey Hardwood Flooring, Measurement Control Systems, and MajorKey Technologies.

Quantifiable outcome

• 75 total investments completed
• +2 more outcomes

Named customers28 records

Segments5 records

Ideal customer profiles3 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Partnerships

25 partnerships are on record, tiered core and minor.

• Ocean Avenue Capital PartnerscoreStrategic or Co-development PartnerCo-invested with Farragut in IMRIS Imaging recapitalization alongside Bell Bank, supporting Grovecourt Capital Partners' acquisition.
• NewSpring CapitalcoreStrategic or Co-development PartnerCo-invested in Virginia Food Group acquisition alongside Salem Investment Partners, supporting Azalea Capital's acquisition. Atlantic Union Bank provided senior debt.
• Salem Investment PartnerscoreStrategic or Co-development PartnerMultiple co-investments alongside NewSpring and others in Virginia Food Group, Burnyzz, and Salisbury Moore transactions.
• NewSpring MezzaninecoreStrategic or Co-development PartnerCo-invested in Burnyzz majority buyout alongside Pine Street Capital and Salem, supporting A111 Capital's acquisition.
• Pine Street Capital PartnersminorStrategic or Co-development PartnerCo-invested in Burnyzz transaction alongside NewSpring Mezzanine and Salem.
• NewCastle PartnerscoreStrategic or Co-development PartnerSupported NewCastle's acquisition of SPG International with Route 2 Capital Partners also participating in the transaction.
• Route 2 Capital PartnersminorStrategic or Co-development PartnerParticipated in SPG International transaction alongside Farragut and NewCastle Partners.
• Thesis CapitalcoreStrategic or Co-development PartnerPartnered on acquisition of NEMA Enclosures, with Farragut providing unitranche debt and equity.
• Progress Equity PartnerscoreStrategic or Co-development PartnerCo-invested in Salisbury Moore recapitalization alongside NewSpring Mezzanine and Salem Investment Partners.
• Watervale Equity PartnerscoreStrategic or Co-development PartnerPartnered on EMX Industries recapitalization with company's CEO Joseph Williams and senior leadership.
• The Acacia GroupcoreStrategic or Co-development PartnerSupported MajorKey Technologies' merger with Clango to create a leading identity security company; MajorKey is a portfolio company of Acacia Group.
• Skyline InvestorsminorStrategic or Co-development PartnerCo-invested in Blue Ocean Brands acquisition of Majik Rent-To-Own alongside Farragut.
• Sidereal InvestmentscoreStrategic or Co-development PartnerMultiple co-investments including MALCO acquisition and Mainstage Theatrical acquisition; Sidereal is a New Jersey-based independent sponsor.
• Parkway CapitalcoreStrategic or Co-development PartnerCo-invested in MALCO and Peachey Hardwood Flooring transactions alongside Sidereal.
• Gemini InvestorscoreStrategic or Co-development PartnerPortfolio company sponsor for Eastern Metal Building Products acquisition of Super Stud, with co-investors including Agincourt Capital Partners.
• Pearl Street Capital PartnerscoreStrategic or Co-development PartnerSupported acquisition of Measurement Control Systems by Pearl Street with unitranche debt and equity.
• L2 CapitalcoreStrategic or Co-development PartnerThird investment alongside L2 Capital in Family Quest Holdings; L2 is a private equity firm focused on consumer businesses.
• Rcap EquitycoreStrategic or Co-development PartnerOriginal sponsor of Douglas Guardian acquisition in 2019, leading acquisition of the risk mitigation solutions company.
• Burlington Capital PartnerscoreStrategic or Co-development PartnerSupported BCP's acquisition of Martin Pallet, a specialty wood pallet and shipping crate manufacturer.
• Promise HoldingscoreStrategic or Co-development PartnerCo-invested in Malley's Candies recapitalization and Catalina Finer Foods succession.
• Hemingway CapitalcoreStrategic or Co-development PartnerLed GTA Containers recapitalization, partnering with senior management and co-investing with Parkway Capital.
• Taglich Private EquitycoreStrategic or Co-development PartnerSupported acquisition of Fiesta Canning Company by Taglich Private Equity.
• Keswick PartnerscoreStrategic or Co-development PartnerPartnered on Meeker Group Holdings recapitalization alongside management team.
• Novastone Capital AdvisorscoreStrategic or Co-development PartnerBacked Robert Vero as owner-operator of Omega Moulding Company, with Cyprium Partners also participating.
• Cyprium PartnerscoreStrategic or Co-development PartnerCo-invested in Omega Moulding Company transaction alongside Farragut and Novastone.

Scale indicators4 records

Recent moves7 records

Expansion highlights4 records

Direct peers

• Route 2 Capital Partners: Route 2 is a SBIC-licensed mezzanine and equity provider that co-invested alongside Farragut in the SPG International transaction. Similar mandate, structure toolkit, and lower middle market focus.
• NewSpring Mezzanine: NewSpring Mezzanine is the lower middle market mezzanine debt and equity arm of NewSpring Capital and is Farragut's most frequent direct co-investment partner across recent vintages (Burnyzz, Virginia Food Group, Salisbury Moore). The two firms regularly underwrite the same deal structures for the same sponsor base.
• Salem Investment Partners: Salem is a SBIC-licensed lower middle market mezzanine and equity provider that has co-invested with Farragut in multiple transactions (Virginia Food Group, Burnyzz, Salisbury Moore). The firms target the same sub-$15M check size and PE sponsor base.
• Cyprium Partners: Cyprium is a Cleveland-based mezzanine and equity investor focused on the lower middle market that co-invested alongside Farragut in the Omega Moulding transaction. Comparable mandate, check size, and target sponsor universe.
• Pine Street Capital Partners: Pine Street is a lower middle market mezzanine debt provider that co-invested with Farragut in the Burnyzz majority buyout. Both firms pursue $2-15M junior capital positions in support of sponsor-led transactions.
• Pearl Street Capital Partners: Pearl Street is a lower middle market private equity sponsor that partnered with Farragut on the Measurement Control Systems acquisition. While sponsor-side, it represents the type of PE firm that is Farragut's core customer base and thus a closely adjacent peer.
• Stonebridge Capital Advisors: Stonebridge is a SBIC-licensed mezzanine debt and equity fund manager focused on the lower middle market. Comparable investment size, target company profile (EBITDA $2M+), and SBIC-driven capital structure.
• Bison Capital: Bison Capital is a lower middle market mezzanine debt and minority equity provider with similar SBIC utilization, target check size, and focus on sponsor-backed transactions.
• Ironwood Capital: Ironwood Capital is a SBIC-licensed private investment firm providing subordinated debt and equity to lower middle market companies — closely comparable mandate, structure, and target profile to Farragut.

Broad incumbents

• NewSpring Capital: NewSpring Capital is a larger, multi-stage PE platform whose mezzanine arm is Farragut's frequent co-investor. As a broader incumbent with control buyout and growth equity strategies, NewSpring provides a useful scale benchmark for where Farragut could grow over multiple fund vintages.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat4 records

Key risks2 records

Key highlights7 records

Customer concentration

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

Revenue estimate

Valuation estimate

Number of profiles

Profiles4 records

Subsidiaries1 record

Funding overview

Funding rounds

Investors

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

M&A1 record

Investments

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

Frequently asked questions about Farragut Capital Partners