Sole Source Capital, a Santa Monica, CA-based operationally-focused lower-middle market investment firm that targets controlling interests in manufacturing, distribution, and industrial service companies, closed its inaugural funds, SSC Partners I LP and SSC Partners I-A LP, at $160m.
The fund includes commitments from a diverse group of new and returning investors including institutional investors and family offices.
Founded in 2016 by David Fredston and an experienced group of private equity professionals, SSC focuses on private investments in founder-owned companies as well as corporate carve-outs and management buy-outs.
Together the SSC partners, which consists of Mr. Fredston, Dewey Turner III, Scott Sussman and Bradford Rossi, have more than 75 years of private equity investment, operational and corporate leadership experience.
The firm expects to target companies with $50 million to $200 million of total enterprise value, ranging from smaller bolt-on acquisitions to larger equity investments.
SSC may also provide additional follow-on capital to its portfolio companies to accelerate growth initiatives and capture synergies that result from the creative consolidation of fragmented end markets.
The fund has made three investments accounting for nearly one-third of its committed capital. In February 2018, SSC made the Fund’s first investment in Premier Flow Control, a provider of flowback, nitrogen, and equipment rental services in the Permian Basin. In June 2018, it acquired a majority interest in Trade Supplies, a distributor of nonperishable foodservice disposable items, dry-grocery items, packaging solutions, and janitorial supplies. Most recently, the fund partnered with Individual FoodService, which it merged with Trade Supplies, to create one of the largest nonperishable foodservice distributors in California.
SSC expects the Fund to be 50% deployed and allocated by the end of the first quarter of 2019.