Source Capital
Source Capital is an Atlanta-based private investment firm founded in 2002 that provides flexible equity and debt capital ($8M-$30M per transaction) to lower middle market companies with $10M+ revenue and $2M+ EBITDA, operating through control equity investments and SBIC-licensed direct lending credit funds alongside private equity sponsors and independent sponsors.
- Company typePrivate
- Founded2002
- HeadquartersAtlanta, United States
- Headcount11–50
- GTM typeB2B
- OfferingServices
What Source Capital does
Source Capital, LLC is an Atlanta, Georgia-based private investment firm founded in 2002 by Tom Harbin and Kate Harbin Clammer that provides flexible equity and debt capital to lower middle market companies, typically investing $8 million to $30 million per transaction in businesses with greater than $10 million in revenue and greater than $2 million in EBITDA. The firm operates two complementary strategies: control equity investments in platform companies (executed through entities such as BlueAlly Technology Solutions, acquired in 2020, and Kitchen Brains, acquired in 2022) and direct lending through Small Business Investment Company (SBIC)-licensed credit funds offering senior, unitranche, and second-lien loans alongside equity co-investments.
The firm's go-to-market combines direct origination by an in-house investment team with co-investment partnerships alongside private equity sponsors and independent sponsors — including Chartwell/CHIEF Capital, Eagle Merchant Partners, Platt Park Capital, Lockeland Capital, Seneca Partners, Black Lake Capital, Baymark Partners, 39 North Capital, Altacrest Capital, and Tricorner Group — supplemented by participation in industry conferences (ACG M&A South, iGlobal, SBIA) and an owned podcast series. Revenue is generated through three streams: realization-driven equity returns from portfolio exits, interest income and fees from SBIC credit fund lending activity, and management and carried interest fees on committed fund capital.
Since inception Source Capital has closed more than 150 investments across approximately six funds, with the fifth fund closing at a $315.5 million hard cap including anticipated SBA debenture leverage in June 2024 alongside the firm's second SBIC license. The team of 11-50 employees carries 200+ years of combined lower middle market investing experience, with senior leaders drawn from Goldman Sachs Specialty Lending, Monroe Capital, Cerberus Capital Management, KPMG Corporate Finance, Antares Capital, Regions Bank, and Bank of America Merrill Lynch. The firm is registered with the SEC as an investment adviser and operates from headquarters in Atlanta with an additional historical office in San Francisco.
Source Capital firmographics
Firmographics- Name
- Source Capital
- Legal name
- Source Capital, LLC
- Website
- https://source-cap.com
- Company type
- Private
- Founded year
- 2002
- Operating status
- Operating
- Headcount range
- 11–50 employees
- Short description
- Source Capital is an Atlanta-based private investment firm founded in 2002 that provides flexible equity and debt capital ($8M-$30M per transaction) to lower middle market companies with $10M+ revenue and $2M+ EBITDA, operating through control equity investments and SBIC-licensed direct lending credit funds alongside private equity sponsors and independent sponsors.
- Ownership category
- akta.pro rank
Source Capital industry classification
Industry- Product category
- Private Equity / Direct Lending (Lower Middle Market Investment)
- NAICS
- Funds, Trusts, and Other Financial Vehicles (525)
- SIC
- Miscellaneous Business Credit Institution (6159), Short-Term Business Credit Institutions (6153)
- akta.pro primary industry
- Middle-Market Lending (FSANADAI)
- akta.pro secondary industries
- Large-Cap / Sponsor Finance Direct Lending (FSANADAJ), Venture Growth / Recurring Revenue Credit Funds (FSANAIAG)
Keywords
Where Source Capital is headquartered
LocationHeadquarters
- HQ city
- Atlanta
- HQ country
- United States
- HQ region
- North America
Offices2 records
Markets served
Source Capital business model
Business model- GTM type
- B2B
- Offering type
- Services
- Cost components
- Personnel, Operations, Technology or R&D, Marketing or Sales
Revenue model
- Investment Returns: Realization of returns through exits of portfolio companies, including full business sales and refinancing transactions.
- Credit Fund Management: Interest income and fees from debt investments through SBIC funds and credit platforms. Provides senior, unitranche, and second-lien loans along with equity co-investments.
- Equity Investment Returns: Capital appreciation through control equity investments in lower middle market companies. Returns realized through strategic exits and liquidity events.
Pricing tiers
| Model | Billing | Price |
|---|---|---|
| Other | Multi-year contract | Direct Lending: Up to $30 million per transaction |
Go-to-market motion3 records
Distribution channels2 records
Marketing channels5 records
Source Capital product offering
Product offeringCore offering
Source Capital is a private investment firm that provides flexible equity and debt capital to lower middle market companies. The firm operates two primary strategies: control equity investments in platform companies and direct lending through SBIC-licensed credit funds, typically deploying $8 million to $30 million per transaction in companies with greater than $2 million in EBITDA.
Product overview
Source Capital is a private investment firm, not a technology product company. It does not offer a software product or platform with distinct modules, sub-products, or named offerings. The company's core 'offering' is investment capital — specifically flexible equity and debt (direct lending) capital — provided to lower middle market companies seeking a growth-oriented partner. Investment sizes typically range from $8 million to $30 million per transaction. The firm operates two primary investment strategies: (1) control equity investments in platform companies, and (2) direct lending through SBIC-licensed credit funds. Source Capital's credit platform provides senior, unitranche, and second-lien loans along with equity co-investments to support management buyouts, recapitalizations, independent sponsor transactions, add-on acquisitions, growth capital, buy-and-build platforms, and refinancings. The firm has raised five credit funds, with its fifth fund (SBIC-licensed) raising $315.5 million and reaching its hard cap.
Differentiator
Problem solved
Functional benefit
Products and services
- Control Equity Investments
- Direct Lending (SBIC Credit Platform)
- Fifth Investment Fund (SBIC-licensed)
Quantifiable outcome
- 150+ investments closed since founding
- +2 more outcomes
Companies that use Source Capital
Customer profileNamed customers7 records
Segments4 records
Ideal customer profiles2 records
Source Capital technology and API
TechnologyTechnology focussed No
API detail
- Has API
- No
- API docs
- API detail
Core technology
AI maturity
App detail
Source Capital partnerships and signals
Strategic signalPartnerships
Ten partnerships are on record, tiered core.
- Tricorner GroupcoreTricorner Group is a lower middle market independent sponsor focused on acquiring and growing businesses in technology-driven transformation industries. Source Capital invested alongside Tricorner in KCI Telecommunications acquisition, providing debt and equity through their SBIC fund.
- Eagle Merchant PartnerscoreEagle Merchant Partners is a private equity sponsor specializing in partnering with founder-owned businesses in the Southeast. Source Capital has completed multiple investments with Eagle Merchant, including Sam The Concrete Man franchise acquisition.
- Chartwell Investments / CHIEF CapitalcoreLongstanding partnership with Chartwell/CHIEF Capital for multiple investments including TTG Healthcare, Blue Ocean Aesthetics Holdings, Rohrer Aesthetics, World Water Works, and Guardian Fleet Services.
- Lockeland Capital PartnerscoreInvestment firm focused on acquiring well-established lower middle market manufacturing, distribution and service businesses. Source Capital's first investment with Lockeland was Don Young Company.
- Platt Park Capital PartnerscoreDenver-based private equity firm. Source Capital has completed multiple investments with Platt Park including Pilot Painting and Hiatus Spa + Retreat.
- Black Lake CapitalcorePrivate investment firm partnering with technology and innovation-enabled businesses. Source Capital invested in Spinnaker SCA alongside Black Lake Capital.
- Baymark PartnerscoreDallas-based growth-oriented private equity firm. Source Capital supported Baymark's acquisition of Eastern DataComm.
- 39 North CapitalcorePrivate equity sponsor providing capital to transition and grow businesses in consumer-focused brands and built environment services. Source Capital invested in a QSR barbecue concept alongside 39N.
- Altacrest CapitalcorePrivate equity sponsor partnering with rapidly growing eCommerce brands. Source Capital invested in Big Blanket alongside Altacrest.
- Seneca PartnerscorePrivate equity sponsor focused on lower middle market businesses. Source Capital invested in Wyoming Corporate Services alongside Seneca Partners and White Wolf Private Credit.
Scale indicators13 records
Recent moves6 records
Expansion highlights6 records
Source Capital competitors and assessment
Company assessmentDirect peers
- Monroe Capital: Monroe Capital is a direct peer as a Chicago-based direct lending and private credit firm focused on the lower middle market, offering senior, unitranche, and second-lien loans. Source Capital's Joe Rodgers was previously a Monroe Capital Managing Director and Southeast Region Group Head.
- Centerfield Capital Partners: Centerfield Capital Partners is an Indianapolis-based SBIC-licensed lower middle market direct lender and private equity investor. Centerfield is a repeat co-investment partner of Source Capital (e.g., BlueAlly, KCI Telecommunications) and competes directly for similar SBIC-backed debt and equity transactions.
- NewSpring Capital: NewSpring Capital is a Pennsylvania-based lower middle market private equity and credit firm with SBIC licenses, investing in control equity and mezzanine debt. Source Capital and NewSpring compete directly for similar lower middle market opportunities with comparable structures.
- Antares Capital: Antares Capital is one of the largest U.S. middle market direct lenders and a direct peer to Source Capital's credit platform. Source Capital's Rob Kissling previously served as Vice President at Antares, underscoring the close comparability in product offering and target borrower.
- Capitala Group: Capitala Group is a lower middle market direct lending and private equity firm that has historically operated SBIC-licensed funds. It is comparable to Source Capital in fund strategy, target borrower profile, and SBIC-driven credit platform.
- Stellus Capital Investment: Stellus Capital Investment is a publicly traded business development company providing senior and unitranche debt to lower middle market companies, often alongside PE sponsors. It is a direct peer in product offering and borrower segment to Source Capital's direct lending platform.
- Trinity Capital: Trinity Capital is an SBIC-licensed specialty direct lender providing senior, unitranche, and asset-based loans to lower middle market companies. It is a direct peer in product offering, SBIC capital structure, and target market.
Broad incumbents
- White Oak Global Advisors: White Oak Global Advisors is a larger alternative asset manager focused on direct lending to small and lower middle market businesses, including through SBIC vehicles. It serves a comparable borrower profile but at a meaningfully larger AUM scale.
- Main Street Capital: Main Street Capital (NYSE: MAIN) is a large, publicly traded lower middle market direct lender and private equity firm with an SBIC license. It is a scaled incumbent comparable to Source Capital in target customer (lower middle market companies) and product (debt + equity), though with materially larger AUM.
Emerging players
- New Mountain Finance: New Mountain Finance is a BDC providing direct lending to defensive, growth-oriented lower middle market companies. It is comparable to Source Capital in target market and product but typically participates in somewhat larger transactions.
Market position
Strengths4 records
Weaknesses4 records
Competitive moat5 records
Key risks5 records
Key highlights6 records
Customer concentration
Source Capital social profiles
Digital presenceSource Capital financial estimates
Financial estimateRevenue estimate
Valuation estimate
Source Capital leadership team
Management profileNumber of profiles
Profiles14 records
Source Capital funding detail
Funding detailFunding overview
Funding rounds
Investors
Funding detail is available on the Subscription and Enterprise plan.Contact sales →
Source Capital M&A and investment
M&A and investmentM&A4 records
Investments9 records
M&A and investment is available on the Subscription and Enterprise plan.Contact sales →
Frequently asked questions about Source Capital
What does Source Capital do?
Source Capital is a private investment firm that provides flexible equity and debt capital to lower middle market companies. The firm operates two primary strategies: control equity investments in platform companies and direct lending through SBIC-licensed credit funds, typically deploying $8 million to $30 million per transaction in companies with greater than $2 million in EBITDA.
Is Source Capital a public or private company?
Source Capital is a private company. It is classified as founder individual operated bootstrapped and is currently operating.
When was Source Capital founded?
Source Capital was founded in 2002. It employs 11 to 50 people.
Where is Source Capital based?
Source Capital is headquartered in Atlanta, United States, in the North America region.
How does Source Capital make money?
Three revenue lines are on record. Investment Returns are the primary driver. The others are credit Fund Management and equity Investment Returns.
Who are Source Capital's main competitors?
Direct peers on record are Monroe Capital, Centerfield Capital Partners, NewSpring Capital, Antares Capital, Capitala Group, Stellus Capital Investment and Trinity Capital. Broad incumbents are White Oak Global Advisors and Main Street Capital. New Mountain Finance is listed as an emerging player.
Does Source Capital have an API?
No public API is recorded for Source Capital.
What industry is Source Capital in?
Source Capital's product category is Private Equity / Direct Lending (Lower Middle Market Investment). Its primary akta.pro industry code is FSANADAI, Middle-Market Lending, with a secondary code of FSANADAJ, Large-Cap / Sponsor Finance Direct Lending. Its NAICS code is 525 and its SIC code is 6159.