HCAP Partners

HCAP Partners is a distinguished private equity firm based in San Diego, California, established in 2000. The firm specializes in providing growth capital, encompassing both debt and equity solutions, to lower middle market companies across the United States. Their strategic approach aims to support established businesses poised for expansion, offering flexible financing structures tailored to the unique needs of each portfolio company.

The firm's investment strategy targets companies with annual revenues typically ranging between $10 million and $100 million, and EBITDA between $2 million and $15 million. HCAP Partners is known for its flexible investment structure, which can include growth equity, mezzanine debt, and/or senior debt. They typically deploy first cheques ranging from $5 million to $30 million, making them a significant capital provider for businesses in their target segment. While sector-agnostic to some extent, they have a notable focus on companies within the healthcare, software, and services industries, leveraging their deep expertise in these sectors to drive value.

Beyond financial returns, HCAP Partners is deeply committed to impact investing. As a certified B Corp, the firm integrates environmental, social, and governance (ESG) factors into its investment process, with a particular emphasis on promoting job quality within its portfolio companies. This commitment is reflected in their recent fundraising efforts, including the successful close of HCAP Partners V, L.P. in 2022 with $275 million in capital commitments. With over $500 million of capital under management across five funds, HCAP Partners has built a strong track record over two decades, consistently supporting the growth and development of lower middle market enterprises while adhering to its core values of responsible investing.