Lower middle market private equity firm
Highland Rim Capital
- HeadquartersNashville, TN S2
- Websitehighlandrimcap.com
- Last verifiedOctober 27, 2026
At a glance
| Latest fund | Highland Rim Capital Partners, $208M (Dec 2025) S6 |
|---|---|
| EBITDA range | $2.5M to $10M S3 |
| Revenue range | $10M to $100M S3 |
| Deal types | Platform, Add-on S3 |
| Geography | United States S3 |
| Sectors | Industrial & Manufacturing, Distribution |
What Highland Rim Capital buys
Highland Rim Capital is a Nashville private equity firm started by three partners who have invested together since 2008. Its first fund, Highland Rim Capital Partners, closed in December 2025 with $208 million, more than its target. The firm takes control of established lower middle market companies in three areas: light manufacturing, value-added distribution and business services. Its stated range is $10 million to $100 million of revenue and $2.5 million to $10 million of EBITDA. It looks nationwide but pays the most attention to the South and the Midwest.
Every deal is built around a long-serving manager who wants to become an owner. Typical situations are family successions, founder transitions, management buyouts, majority recapitalizations and carve-outs of a division from a larger company. Its four current companies are Xybix, Corporate Living, Associated Adjusting and I-Deal Optics. Highland Rim says it will look at add-ons of any size, so a business below its platform range could still meet the firm as a bolt-on to one of those four.
Recent deals
Announced in the 24 months before October 27, 2026.
| Date | Company | Type | Sector | Source |
|---|---|---|---|---|
| Jan 2026 | Xybix SystemsMaker of ergonomic workstations for 911 dispatch centers and control rooms near Denver; the CEO and leadership team stay on | Platform | Industrial & Manufacturing | Source |
| Dec 2025 | Highland Rim Capital PartnersDebut fund closed above target with $208 million of commitments | Fund close | Source | |
| February 2025 | Corporate LivingCleveland provider of temporary furnished housing for corporate relocations and project staff | Platform | Source |
Portfolio by sector
From the firm's portfolio page S4.
Business Services
- Xybix
- Corporate Living
- Associated Adjusting
Value-add Distribution
- I-Deal Optics
Greymont’s take
How Highland Rim Capital fits a seller
Highland Rim suits an owner who is ready to step back and already has a trusted manager who could run the company. The firm's approach is to turn that person into a real owner, with a meaningful equity stake and control over daily operations, while the founder sells most or all of the business. In the January 2026 Xybix deal, the chief executive and the rest of the leadership team stayed in place, and the founders kept a role to help with the handoff.
The firm is investing its first institutional fund and has made four investments since May 2024, so each company gets close attention from the partners. An owner should ask who will lead the business after closing and how much equity that person will get, and what growth plan Highland Rim has in mind before it eventually sells.
Questions owners ask
What size company does Highland Rim Capital look for?
Its criteria call for $10 million to $100 million of revenue and $2.5 million to $10 million of EBITDA for a new platform. It also says it will consider add-on acquisitions of any size for the companies it already owns.
Does the management team stay after Highland Rim invests?
Yes, that is the center of its model. Highland Rim partners with long-tenured managers, gives them meaningful ownership and operating independence, and kept the Xybix chief executive and leadership team in place after its January 2026 acquisition.
How large is Highland Rim's fund?
Its debut fund, Highland Rim Capital Partners, closed in December 2025 with $208 million of commitments, above its target. Backers included asset managers, pension plans, foundations, family offices, insurers and endowments.
What kinds of deals does Highland Rim do?
The firm lists management buyouts, family successions, founder transitions, divisional spinouts, majority-control recapitalizations and corporate divestitures. It focuses on light manufacturing, value-added distribution and business services companies with stable cash flow and a diverse customer base.
Sources
- S1Highland Rim Capital home page Accessed October 27, 2026
- S2Highland Rim Capital: About Us Accessed October 27, 2026
- S3Highland Rim Capital: Approach and Investment Criteria Accessed October 27, 2026
- S4Highland Rim Capital: Portfolio Accessed October 27, 2026
- S5Highland Rim Capital: News & Press Releases Accessed October 27, 2026
- S6Highland Rim Capital Closes First Fund Above Target at $208 Million (December 17, 2025) Accessed October 27, 2026
- S7Highland Rim Capital Partners with Management at Xybix Systems (January 30, 2026) Accessed October 27, 2026
- S8Highland Rim Capital: Partner With Us Accessed October 27, 2026
Compiled by Greymont Advisors from public sources, including the firm’s own website and press releases. Greymont is not affiliated with Highland Rim Capital. Figures are as reported on the dates shown and may have changed. Request a correction