Private equity firm
LKCM Headwater Investments
- HeadquartersFort Worth, TX S2
- Websitelkcmheadwater.com
- Last verifiedOctober 20, 2026
At a glance
| Revenue range | $50M to $500M S3 |
|---|---|
| Check size | $5M to $80M S3 |
| Deal types | Platform, Add-on, Growth, Minority S3 |
| Sectors | Distribution, Industrial & Manufacturing, Healthcare Services, Insurance Brokerage, Software & SaaS |
What LKCM Headwater Investments buys
LKCM Headwater Investments is the Fort Worth, Texas private equity affiliate of Luther King Capital Management, an investment manager founded in 1979. It is generally a control investor and lists a wide set of deal types: buyouts and recapitalizations of family-owned companies, growth capital, build-ups, corporate carve-outs, and capital-constrained, distressed or time-sensitive situations. For select deals it will also take a minority position higher in the capital structure. Its focus areas are distribution, manufacturing, healthcare, financial and professional services, consumer products, technology and energy.
For a new platform it looks for $50 million to $500 million of revenue and invests $5 million to $80 million of equity, with room to go larger through its existing investors. Add-ons can be far smaller, starting around $3 million of revenue. That makes an add-on the likeliest route for a smaller company, for example into one of its industrial distribution holdings such as LGG Industrial, XMEK or the businesses of Distribution Solutions Group.
Recent deals
Announced in the 24 months before October 20, 2026.
| Date | Company | Type | Sector | Source |
|---|---|---|---|---|
| Apr 2026 | Fox Ridge CapitalNew small-ticket equipment finance company launched with industry veteran Tom Depping as CEO | Platform | Source | |
| May 2025 | Relevant SolutionsMajority sold to Fusion Capital Partners; LKCM Headwater reinvested and stays a minority owner | Exit | Distribution | Source |
| Mar 2025 | PPM PartnersAnesthesia billing and revenue cycle firm added to Knack RCM | Add-on | Healthcare Services | Source |
| Jan 2025 | HealthyBOSRevenue cycle management provider with US and Philippines operations added to Knack RCM | Add-on | Healthcare Services | Source |
| Nov 2024 | Tech-Component Resources and ConRes Test EquipmentTwo acquisitions closed by Distribution Solutions Group for its Gexpro Services and TestEquity units | Add-on | Distribution | Source |
Portfolio by sector
From the firm's portfolio page S4.
Active Investment
- Alliance Consumer Group
- Athos Group
- Fox Ridge Capital
- Gexpro Services
- Higginbotham
- Independent Life
- Lawson Products
- LGG Industrial
- LL&B Minerals
- LQA
- Magnus Technologies
- MOC Products
- Partner Industrial
- ProbablyMonsters
- Redstar
- Relevant Power Solutions
- Resource Minerals
- TestEquity
- XMEK
- ZeroedIn
Past investments: Knack RCM, Relevant Solutions
Greymont’s take
How LKCM Headwater Investments fits a seller
LKCM Headwater fits owners of family businesses in industrial distribution, specialty manufacturing or business services who want a hands-on partner with deep roots in Texas. The firm, its partners and affiliates supply about 30% of the capital in its partnerships, so the decision makers have their own money at stake. It also says it tries to avoid deals that only work with heavy borrowing, which can mean less debt placed on the company after a sale.
Its holds can run long and end in more than one step. When it sold a majority of Relevant Solutions to Fusion Capital Partners in May 2025, it reinvested and stayed on as a minority owner. An owner should ask whether LKCM Headwater would buy the company as a stand-alone platform or fold it into an existing holding, and how long it expects to own the business.
Questions owners ask
What size companies does LKCM Headwater invest in?
Platform companies with $50 million to $500 million of revenue, with equity investments of $5 million to $80 million each. Add-on acquisitions for its current holdings can be as small as about $3 million of revenue.
Does LKCM Headwater take minority stakes?
It is generally a control investor, but its criteria say it will consider minority investments higher in the capital structure for select deals, and growth capital is on its list of deal types. After selling control of Relevant Solutions in 2025, it kept a minority stake.
How is LKCM Headwater related to Luther King Capital Management?
It is an affiliate of Luther King Capital Management, a Fort Worth investment manager founded in 1979. That tie gives the private equity team access to in-house research analysts plus back-office, legal, compliance and tax support.
Sources
- S1LKCM Headwater Investments home page Accessed October 20, 2026
- S2LKCM Headwater Investments: The Firm Accessed October 20, 2026
- S3LKCM Headwater Investments: Investment Overview and Criteria Accessed October 20, 2026
- S4LKCM Headwater Investments: Portfolio Accessed October 20, 2026
- S5LKCM Headwater Newsroom Accessed October 20, 2026
- S6Tom Depping and LKCM Headwater Investments Launch Fox Ridge Capital (GlobeNewswire, April 21, 2026) Accessed October 20, 2026
- S7Relevant Solutions Announces New Strategic Investment by Fusion Capital Partners (May 19, 2025) Accessed October 20, 2026
Compiled by Greymont Advisors from public sources, including the firm’s own website and press releases. Greymont is not affiliated with LKCM Headwater Investments. Figures are as reported on the dates shown and may have changed. Request a correction