Capitala Group Successfully Closes Oversubscribed Fund with $1.0 Billion in Commitments

Capitala strengthens lower middle-market support with new and returning investor commitments, providing private credit and private equity capital solutions to U.S. small businesses.

Capitala Group (“Capitala” or the “Firm”), a leading private markets investment firm providing capital solutions to lower middle-market companies, is pleased to announce that its latest fundraise was oversubscribed with over $1.0 billion in commitments, including leverage, and separately managed accounts. Capitala invests both debt and equity capital into small businesses located throughout the U.S. The Firm’s strategy supports family-owned, entrepreneur-owned, and independent sponsor-owned companies seeking non-control growth capital for their businesses. With Capitala’s flexible mandate, the Firm can serve as a one-stop financing source for small businesses and currently has over $300 million of equity-focused commitments available to co-invest alongside its debt capital.

Executive Commentary: “We are thrilled to conclude this round of fundraising, which was oversubscribed and far exceeded our initial target due to strong institutional demand. Reaching $1 billion in commitments is a major achievement for our firm, which reflects the strength of our platform and the trust placed in us by our investors,” said Joe Alala, III, Founder and CEO of Capitala Group. “We are also pleased to share that we have added 42 new bank partners to our platform during this fundraise, in addition to many blue-chip institutional global investors. With 79 banking partners fueling our proprietary origination platform, we believe we have a competitive edge in identifying and sourcing high-quality investment opportunities.”

Flexible Investment Mandate: Capitala operates under a flexible capital mandate, providing bespoke capital solutions to lower middle-market companies through unitranche first-lien loans and equity co-investments. This allows Capitala to deliver customized financing solutions that support entrepreneurs, independent sponsors, family-owned businesses, and non-sponsor-backed companies to achieve their growth objectives.

Meeting the Needs of Lower Middle-Market Businesses: Capitala believes its focus on lower middle-market companies addresses a critical gap in the financing landscape. These businesses often face challenges accessing flexible capital, and Capitala’s unique approach bridges that gap by providing tailored financial solutions. By partnering with businesses across diverse industries, Capitala continues to play a pivotal role in driving economic growth and creating value for its investors.

About Capitala Group: Capitala Group is a leading private markets investment firm that has been investing private credit and private equity capital into lower middle-market businesses throughout North America for over twenty-five years. Since our inception in 1998, Capitala has invested and managed over $3.2 billion¹, utilizing our flexible capital mandate to deliver creative financing solutions. We aim to partner with strong management teams to create value and support growth through strategic partnerships, operational expertise, and a shared vision for success.

Capitala's ecosystem includes 79 banks on its platform since inception and benefits from a senior leadership team with a combined 195 years of experience. To date, we have invested in 35 of the 50 states, further demonstrating our broad reach and commitment to supporting businesses nationwide. For more information, visit www.CapitalaGroup.com

¹ Includes invested capital since inception, callable capital to commingled funds and available credit facilities, and discretionary and non-discretionary managed accounts

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