Charlotte-based Capitala Group, the business investment company led by Joe Alala III, said it raised more than $1 billion in capital commitments.
Since its formation in 1998, Capitala has invested more than $3.2 billion. Its focus is on lower middle-market companies, typically with less than $100 million annual revenue.
In a statement, Capitala said it can “serve as a one-stop financing source for small businesses” and has more than $300 million of equity-focused commitments available to co-invest along with its debt capital.
“We are thrilled to conclude this round of fundraising, which was oversubscribed and far exceeded our initial target due to strong institutional demand,” Alala said. “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.”
The company added 42 new bank partners to its platform during this fundraise, along with “many blue-chip institutional global investors,” he said. The company now has 79 banking partners who help provide business leads, which Alala called a competitive advantage.
In 2024, Capitala said it closed 24 transactions, including making seven new platform investments. It paid record dividends for its legacy funds and raised more than $275 million in capital, according to its website.
The privately held company had a smaller, affiliated business development company, Capitala Finance, which went public for $19 in 2013 and had a market value of about $250 million. It merged into New York-based Logan Ridge Finance in July 2021, when its market cap was about $70 million. In its last quarterly public report, Capitala Finance said its investment portfolio consisted of 35 companies with a fair market value of $258.2 million and a cost basis of $234 million.