What Kind of Deals Does Tecum Capital Do? | Stephen J. Gurgovits, Tecum Capital
An SBA license, mostly sub debt and a lot of independent sponsors: Steve Gurgovits on the deals Tecum Capital is built to do.
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Castro What kind of deals does Tecum Capital do? Stephen J. Gurgovits, Managing Partner & Co-Founder at Tecum Capital, explains how the Pittsburgh firm manages an SBA-licensed SBIC fund that supplies capital to small businesses and founder- and family-owned companies, mostly as subordinated debt or mezzanine capital alongside equity co-investments. He describes the businesses Tecum targets, domestic U.S. companies with $3 million to $10 million of EBITDA and $15 million to $100 million in revenue, and why so many of its deals are done with independent sponsors.
About Stephen J. Gurgovits: Steve is Managing Partner and co-founder of Tecum Capital, a Pittsburgh-based private investment firm focused on mezzanine debt, subordinated notes and private equity for lower middle market businesses. Before founding Tecum, he was President and CEO of F.N.B. Capital Corporation, the merchant banking subsidiary of F.N.B. Corporation. He holds the CFA charter and is a licensed CPA in Pennsylvania.
Connect with Stephen J. Gurgovits:
Website: https://www.tecum.com/
LinkedIn: https://www.linkedin.com/in/gurgovits
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Topics: SBIC fund, mezzanine capital, subordinated debt, equity co-invest, independent sponsors, lower middle market, founder-owned businesses
Disclaimer: Joshua Wilson is a licensed Florida real estate broker (BK3038350) and holds FINRA Series 79 and Series 63 licensure. The PE Podcast is produced by One Iron Network LLC for informational and educational purposes only. Nothing discussed constitutes investment advice, legal or tax advice, a solicitation, or a recommendation to buy or sell any security or to pursue or avoid any transaction. All views and opinions expressed by the host and guests are their own and do not necessarily reflect the positions of One Iron Network LLC, Smooth Stone Capital, any regulatory agency, or any employer. Any performance figures, valuations, or transaction terms discussed are historical, specific to the circumstances described, and are not indicative of future results. Listeners should consult their own legal, financial, and tax professionals before making any business, financial, or transaction decision.
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Joshua Wilson:
All right, Steve, so why don't you tell us a little bit about your firm and describe the kind of deals you do?
Stephen J. Gurgovits:
Sure. I'm Steve Gurgovits, managing partner here at Tecum Capital. Tecum Capital is based in Pittsburgh, PA, and we run multiple strategies. Our core strategy is that we manage an SBIC fund. That is a license through the Small Business Administration. It gives us the opportunity to supply capital to small businesses and founder- and family-owned businesses. Our current fund is Fund IV, $415 million. And our goal at the fund level is to be about 70% sub debt, or mezzanine capital, and 30% equity co-invest. So we do a lot of deals with independent sponsors. We're industry agnostic, and we're really focused on domestic U.S. businesses that run $3 to $10 million of EBITDA, somewhere between$15 and $100 million in revenue. That is our core strategy. We also have a strategy that we're in market with that's equity oriented. We're currently raising a fund we hope will launch in 2027. And then we also have an in-house independent sponsor team, with two individuals who are looking to acquire businesses and raise capital on a deal-by-deal basis through family offices and our institutional network.
Managing Partner & Co-Founder, Tecum Capital
Stephen J. Gurgovits, Jr. is the Managing Partner and co-founder of Tecum Capital, a $750+ million private investment firm based in Pittsburgh, PA, which oversees pools of committed capital focused on mezzanine debt, subordinated notes, and private equity, along with a separate strategy via a multi-family office platform for control equity investments. Currently, Tecum Capital is investing out of its fourth committed fund, Tecum Capital Partners, IV, LP, a $415 million fund licensed as a Small Business Investment Company by the SBA. In his current role, Mr. Gurgovits, Jr. is responsible for providing strategic, operational and investment management leadership to the funds, including its overall planning, fund raising, growth and execution of strategy. Mr. Gurgovits, Jr. previously served on the board of directors of Auburn Gear, Uncle Charley’s Sausage, Oberg Industries, ASW, Gibraltar Cable Barriers, and was also former Chair of the Pittsburgh Chapter of the Association for Corporate Growth (ACG). He currently serves on the board of directors for Adherex, 5280 Waste, and Iron City Express.
During his career, Mr. Gurgovits, Jr. has been directly involved in over $1 billion of aggregate financial transactions, both public and private. Mr. Gurgovits, Jr. has also served as the investment and portfolio manager for over $200 million of publicly-traded securities.
Prior to founding Tecum Capital, Mr. Gurgovits, Jr. was President and C.E.O. of F.N.B. Capital Corporation, LLC, a wholly-owned merchant banking subsidiary of F.N.B. Corporation (NYSE: FNB) from its… Read More