What size company does Capstreet invest in?
Capstreet looks for companies with $3 to $15 million of EBITDA. EBITDA is a company’s earnings before interest, taxes, depreciation and amortization. It is the measure most private equity firms use to compare businesses of different sizes.
This is the first filter we apply. It places Capstreet in the lower middle market, where owners often built the business themselves. You can read how that segment works in our guide to lower middle market private equity.
Capstreet was founded in 1990 and is based in Houston. The firm brings 30+ years of experience, 50+ platform acquisitions and 200+ add-on acquisitions to each new partnership.
What does Capstreet look for in a company?
Capstreet seeks entrepreneur-owned businesses services companies. We want a team that is ready for a majority capital partner and a business with room to grow. The checklist below is how we describe a fit, in our own words.
| What we look for | What it means for you |
|---|---|
| Entrepreneur-owned businesses services companies | You built the company, and it sells services to other businesses. |
| $3 to $15 million of EBITDA | Your earnings fall inside our range. |
| Primarily majority investments | We usually take a majority stake. |
| Entrepreneurs reinvest alongside Capstreet | You keep equity and share in what comes next. |
| Ability to apply the Capvalue Framework® | The business can use our three-part approach to growth. |
From our own site: “We look for businesses that have a tenured team of owners or managers seeking a majority capital partner, with solid financials, a defensive business model, untapped growth potential, and competitive advantages within their market niche.”
We also say: “We focus on developing highly profitable, differentiated businesses that can be successful well beyond our ownership period.”
Does Capstreet make majority or minority investments?
Capstreet makes primarily majority investments. In a majority recapitalization, the owner sells a controlling stake to a partner and keeps part of the company. At Capstreet, entrepreneurs reinvest alongside us.
That structure matters to many founders. You take money off the table and stay invested in the next stage. For the full picture of how a partial sale works, read our page on recapitalization.
You can also compare structures side by side in majority vs. minority recapitalization.
How does the Capvalue Framework® fit the criteria?
The Capvalue Framework® is the way we work with every company we back. It has three parts: Research, Build Scalable Platform and Drive Business Transformation. A company that fits our criteria is one where we can apply it.
| Stage | What we do |
|---|---|
| Research | Perform deep research to identify markets. Become educated on market dynamics and opportunities. Identify and establish relationships with key entrepreneurs. |
| Build Scalable Platform | Invest in top talent and technologies. Deploy industry best practices for growth. Provide functional expertise for scale. |
| Drive Business Transformation | Develop a long-term strategic roadmap. Execute buy and build strategy. Seek to deliver enduring value for customers, employees and investors. |
The third stage includes a buy and build strategy. Under that approach, a platform company grows through add-on acquisitions. Learn more on our buy and build strategy page, or see how we describe the Framework on Building Greatness.
What industries does Capstreet invest in?
Capstreet has experience in 12 industries. We are thesis-driven investors: we identify, research and become educated in the areas we invest. Each industry below links to a page with our view of that sector.
- Healthcare: business-to-business models that improve operating efficiency for providers and payers.
- Automotive: solutions for dealer sales, marketing, finance and insurance, and service lane operations.
- Transportation logistics: supply chain technology such as track and trace, TMS and WMS.
- Insurance: technology-enabled services and software that support carrier operations.
- Construction: software for project and financial management for general and sub-contractors.
- Hospitality: businesses in a fragmented foodservice sector that technology is changing.
- Power and utility: maintenance services tied to upgrading the electric grid.
- Petrochemical and chemical: technical maintenance providers for petrochemical plants.
- Manufacturing: component suppliers and service providers to manufacturers.
- Marine: products and services for the marine industry.
- Legal: legal services and technology in a fragmented, under-adopted market.
- Government: specialized vertical software for GovTech.
Not sure where your company sits? See the full industries overview, or read about our portfolio companies.
How do I start a conversation with Capstreet?
Call 713-332-2700 or email connect@capstreet.com. You can also write or visit us at 1001 Louisiana Street, Suite 3200, Houston, TX 77002. If you are interested in working together, we invite you to reach out.
You do not need a finished sale process to talk. Many owners start by learning how a partnership works. Our guide on how to choose a private equity partner lists questions to ask any firm, including us.
Is my company a fit if it is outside the range?
Capstreet states its range as $3 to $15 million of EBITDA. If your earnings fall near the edge, or your situation is unusual, the direct way to find out is to call. We do not publish exceptions on this page.
Here is a quick self-check against the criteria above:
- Do you own or lead a business services company?
- Are your earnings in the $3 to $15 million EBITDA range?
- Is your team tenured and ready for a majority capital partner?
- Do you want to reinvest and stay part of the company?
- Does your company have solid financials and untapped growth potential?
If you can answer yes to most of these, a conversation makes sense. If you are still deciding whether to sell, start with our page on selling your business to private equity or read about business succession and exit options.
Next step
Read how the criteria apply to your sector on our industries page, then reach out for a confidential conversation at /contact. Call 713-332-2700 or email connect@capstreet.com.
Frequently asked questions
What size company does Capstreet invest in?
Capstreet looks for companies with $3 to $15 million of EBITDA. EBITDA means earnings before interest, taxes, depreciation and amortization. It is a common way to measure how much a business earns from its operations before financing and tax choices.
Does Capstreet buy a majority or a minority stake?
Capstreet makes primarily majority investments. Entrepreneurs reinvest alongside Capstreet, so you can stay invested in the business after the deal. This is how Capstreet describes its approach. If you want to compare stake sizes before you call, read our guide on majority and minority recapitalization.
What kind of company is a fit for Capstreet?
Capstreet seeks entrepreneur-owned businesses services companies. We look for a tenured team of owners or managers seeking a majority capital partner, solid financials, a defensive business model, untapped growth potential and competitive advantages within a market niche.
Which industries does Capstreet invest in?
Capstreet has experience in healthcare, automotive, transportation logistics, insurance, construction, hospitality, power and utility, petrochemical and chemical, manufacturing, marine, legal and government. Each industry has its own page that explains how we think about the sector.
How do I contact Capstreet about my company?
Call 713-332-2700 or email connect@capstreet.com. The office is at 1001 Louisiana Street, Suite 3200, Houston, TX 77002. Reach out to start a confidential conversation about whether your company fits, and ask any questions about our approach.
Terms on this page
Sources
Written by Capstreet and checked against the sources above on November 10, 2026. Market figures and deal practice change, and nothing here is legal, tax or investment advice. Ask your own advisers before you act.
