Sponsor-Led Equity Solutions
Providing Flexible Capital for Independent Sponsors
and Emerging Managers
Tail End Capital Partners is an independent, specialized private equity firm focused exclusively on sponsor-led investments in the lower end of the middle market. We partner with high quality independent sponsors and committed funds on a deal-by-deal basis to support the growth of market-leading companies.
A Better Way to Invest in the Lower-Middle Market
We founded Tail End in 2021 with the belief that there was a better way to access the lower-middle market than through competitive auction processes. Our investment focus is on inefficient markets as defined by size, competition, and transaction complexity
Independent Sponsors
Emerging Managers
Emerging managers with committed funds are increasingly using single-asset continuation vehicles to hold onto high quality portfolio companies
Transaction Dynamics
Mid-hold, single-asset investments to provide optional liquidity to legacy fund LPs and new equity to support company growth
What Tail End finds attractive
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Shortage of capital, especially for smaller deals
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Shorter hold periods with strong GP alignment
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De-risked due to sponsor's prior involvement and Tail End's partnership approach to value creation
The most active segment of the lower-middle market. Tail End tracks over 1,500 independent sponsors in North America, largely underserved by capital providers
Transaction Dynamics
Beginning or mid-hold investments where an i-sponsor is seeking to provide liquidity to a majority of shareholders and dry powder for growth
What Tail End finds attractive
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Off-market transactions at non-auction valuations
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Strong alignment with i-sponsor and management
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I-sponsors bring deep sector expertise but seek Tail End's operational value-add
Partner of Choice
We've earned earned our partners' trust through a consistent approach to every situation:
Speed
Move quickly with conviction to reduce time to close
Certainty
Committed capital with dry powder for future growth
Flexibility
Finding the optimal structure for each sponsor's needs
Business Model Focus
Selective focus on three core business models where we bring deep experience
Specialty Distribution
Route-based and hourglass
Asset-Light Manufacturing
Low capex, high FCF conversion
Recurring Services
High margins, repeat demand
Investment Imperatives
Resilience
High quality companies with strong cash flow that are less impacted by market cycles
Growth
Established organic and inorganic growth playbook with the team and systems in place to execute
Alignment
Invest equity-only alongside sponsors and management teams and use economic incentives to drive towards an exit
Exit
3-5 year path to exit to a robust universe of potential buyers with the potential for a premium valuation at exit
A partnership approach to Value Creation
We seek partners who value our decades of experience making direct investments
Accelerate Growth
Operations
Talent
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Enhance sales strategy and salesforce effectiveness
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Product, service, or geographic expansion
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Pricing initiatives
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Identify and remove process bottlenecks
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Support company efficiency with new technology
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Streamline supply chain and delivery operations
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Identify talent gaps and accelerate searches
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Assess company org. and incentive programs
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Alignment on key value drivers
Finance & Accounting
Strategic M&A
Exit Planning
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Optimize financial reporting, KPIs, and forecasting
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Streamline accounting practices and controls
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ROI discipline
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Align on M&A strategy
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Improve sourcing and execution
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Accelerate integration and capture synergies
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Define hold period and path to exit
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Improve talent depth for next buyer
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Seed longer-term growth opportunities to maximize multiple
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