Sole Source Capital Review: Dallas Industrial & Manufacturing Private Equity
In-depth review of Sole Source Capital: their industrial, manufacturing, and carve-out investment thesis, portfolio companies, typical deal sizes, and how to prepare for investment.
Key Takeaways
- •Dallas-based industrial-focused private equity firm founded in 2016 by David Fredston
- •Thematically invests in fragmented, high-growth industrial subsectors
- •Investment range: $25M-$100M in equity for lower middle market
- •Recession-resistant industrial assets with operational expertise
- •Notable portfolio includes ID Images, Peak Technologies, Dawsco Meat and Seafood
Firm Overview
Sole Source Capital is an operationally-focused, lower-middle market investment firm that targets recession-resistant industrial assets.
Founded in 2016, the firm thematically invests in fragmented, high-growth industrial subsectors with clear market leaders.
Sole Source has been recognized as a top-performing private equity manager by PitchBook.
The firm brings significant operational expertise through an in-house team to drive performance improvements at portfolio companies.
How to Connect With Sole Source Capital
- Demonstrate Market Position — Highlight your competitive advantages, customer relationships, and barriers to entry that protect your market position
- Show Operational Improvement Opportunities — Be prepared to discuss specific operational improvements Sole Source could implement to drive growth
- Emphasize Recession Resistance — Demonstrate consistent performance through economic cycles with historical financials
- Prepare Detailed Carve-Out Plans — If pursuing a carve-out, have detailed plans for operational separation and standalone viability
How Eagle Rock Helps
We help industrial companies prepare for PE investment by building detailed financial models, operational dashboards, and margin analysis. Our fractional CFO services ensure your company is ready for Sole Source's operational due diligence.
Pro Tip
Frequently Asked Questions
What industries does Sole Source Capital focus on?
Sole Source Capital primarily invests in Distribution, Industrial, Manufacturing. The firm seeks companies with strong market positions and clear growth trajectories.
What size companies does Sole Source Capital acquire?
Sole Source Capital typically invests $25M-$100M in equity, targeting companies with enterprise values in the lower to middle market range.
What is Sole Source Capital's typical investment size?
The firm's equity investments generally range from $25M-$100M, positioning them as active investors who can provide meaningful capital for growth.
How long does Sole Source Capital's due diligence process take?
Due diligence timelines vary by deal complexity, but Sole Source Capital typically conducts thorough financial, operational, and market due diligence over several weeks to months.
What should I prepare before engaging with Sole Source Capital?
Prepare three years of audited financials, detailed market analysis, management team bios, growth plans, and a clear vision for how the partnership would create value.
How does Sole Source Capital work with portfolio companies?
Sole Source Capital takes a partnership approach, working closely with management teams on strategic initiatives, acquisitions, and operational improvements.
Ready to Connect With Sole Source Capital?
Prepare your business for private equity investment with expert financial guidance. Our fractional CFO team helps you build the financial infrastructure PE firms expect.
Learn MoreThis article is part of our Private equity firms | Eagle Rock CFO guide.
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