Cotton Creek Capital

Cotton Creek Capital is a Texas-based private equity firm focused on investing in and growing lower middle market companies. We partner with exceptional management teams, collaborating to create operational road maps to support the growth and evolution of the business, while leaving the corporate identity of the enterprise intact. Having invested in and advised privately-held businesses for over fifteen years, our active approach enables us to work in concert with management teams to build market-leading businesses. Cotton Creek Capital focuses on opportunities where a financial partner is being sought to solve a corporate or ownership need – rather than simply a liquidity event. These situations are often characterized by generational transfers of family-owned businesses, management-backed recapitalizations, or investments in support of expanding capital demands of privately-held companies at an inflection point of growth. Cotton Creek Capital targets investment opportunities in the lower middle market for companies seeking Solution Capital. Such situations primarily include first-round institutional capital, corporate divestitures, and management-backed strategies where Cotton Creek Capital’s relationship-based investing and active post-closing support are most applicable. Typically, these transactions are precipitated by a transitional event where Cotton Creek Capital can provide solutions and expertise. Cotton Creek Capital will proactively seek transactions with some combination of the following characteristics: ▪ EBITDA between $5 million and $15 million with a history of stable financial performance and attractive cash flow dynamics ▪ Strong market position in niche markets or opportunities in markets without a well-defined leader ▪ Businesses experiencing growth-related constraints that cannot always be addressed with existing resources ▪ Opportunity for earnings growth through a combination of revenue enhancement (product, service, and channel expansion) and process improvement ▪ Proven management team or capable management team that can be supplemented with the Firm’s management relationships ▪ Opportunity to enhance the capabilities of the whole by leveraging the unique strengths of each