Five Points Capital

Five Points Capital is a distinguished private equity firm based in Winston-Salem, North Carolina, exclusively dedicated to the U.S. lower middle market. Spun out of BB&T (now Truist) in 2004, the firm has established itself as a significant provider of flexible capital solutions. Their core expertise lies in offering junior capital, which includes mezzanine debt and preferred equity, alongside strategic equity co-investments. This dual approach allows them to support a diverse range of transactions, including growth capital initiatives, recapitalizations, management buyouts, and add-on acquisitions for their portfolio companies.

The firm's investment strategy is highly focused on partnering with strong management teams in established businesses. They typically target companies generating EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) between $5 million and $20 million. Five Points Capital is sector-agnostic to a degree, with a track record of investments across various industries such as business services, consumer products, healthcare, industrials, and technology. Their commitment to the lower middle market reflects a belief in the significant growth potential and value creation opportunities within this segment of the economy.

Five Points Capital has demonstrated a consistent ability to raise substantial capital, having raised over $2.5 billion across 14 funds since its inception. Their most recent fund, Five Points Capital VI, closed in 2022 with $540 million in commitments, following the successful Five Points Capital V which closed in 2018 at $450 million. These funds enable the firm to make meaningful investments, with typical transaction sizes ranging from $10 million to $50 million per deal. This range encompasses both their debt and equity contributions, providing a comprehensive capital solution for their partners. The firm's long-standing presence and deep expertise in the lower middle market underscore its role as a reliable and experienced financial partner for growing businesses.