July 12, 2017, Greenville, SC – We are pleased to announce the formation of Route 2 Capital Partners (“R2CP”), a private investment firm providing flexible mezzanine and equity financing to lower middle market operating companies primarily in the southeastern U.S. The firm will maintain offices in Greenville and Charleston, SC, two high growth and dynamic cities.
R2CP has been formed by a senior team of investment professionals and will be led by co-founders, Jay White, Scott Kester, Patrick Weston, and Spalding White. The principals share deep private market relationships, diverse operational experience, and long-term working histories with each other.
Jay notes “This is an opportune moment in the lower middle market to manage a flexible investing mandate that will enable us to provide capital solutions and direction to well-managed companies. As the market undergoes rapid change, we believe that our experience and track record will allow us to occupy a solid niche as a trusted financial partner. We expect to leverage our team’s significant credit, private equity, and operating backgrounds, as well as our long-term market presence, to focus on investments that generate an attractive risk-adjusted return for our firm and its investors.”
Most recently, Jay and Scott worked together with Sherman Financial Group; Jay as Director, Alternative Assets and Scott as Treasurer / Controller and Executive Vice President, Resurgent Capital Services, LP. Patrick previously served as Managing Partner with Azalea Capital and Spalding founded and served as Managing Partner for Salem Halifax Capital Partners.
R2CP is also pleased to announce that the U.S. Small Business Administration (“SBA”) has issued a “green light” or “go forth” letter inviting R2CP to continue its application process to license R2CP to operate a Small Business Investment Company (“SBIC”). (Note that receipt of a green light letter from the SBA does not assure an applicant that the SBA will ultimately issue an SBIC license, and R2CP has received no assurance or indication from the SBA that it will receive an SBIC license, or of the time-frame in which it would receive a license, should one ultimately be granted.) Currently, there are no licensed SBICs domiciled in South Carolina.About Route 2 Capital Partners
R2CP is a private investment firm providing flexible junior capital solutions to lower middle market companies, primarily in the southern U.S. The firm’s partners possess over 100 years of combined investment, transactional, and operational experience. R2CP seeks to invest in established companies with minimum annual revenues and EBITDA of $10 million and $2 million, respectively, that generate predictable and profitable cash flows. R2CP's investment proceeds will be used to execute growth and expansion plans, support business recapitalizations, and facilitate management buyouts. R2CP reviews opportunities in niche manufacturing, business and healthcare services, and specialty distribution. For more information, visit www.route2capital.com.