Lower middle market junior capital investor (SBIC mezzanine debt and equity co-investment)

Route 2 Capital Partners

  • HeadquartersMount Pleasant, SC S1
  • Founded2017 S7
  • Websiteroute2capital.com
  • Last verifiedNovember 4, 2026

At a glance

Assets under management$470M (as of Oct 2026) S5
Latest fundRoute 2 Capital Partners SBIC II, $262M (May 2024) S6
EBITDA range$2M+ S4
Revenue range$10M+ S8
Check size$5M to $25M S4
Deal typesPlatform, Add-on, Minority, Growth S4
GeographySouthern US (preferred), United States S4
SectorsIndustrial & Manufacturing, Distribution, Consumer & Food, Accounting & Professional Services

What Route 2 Capital Partners buys

Route 2 Capital Partners is a South Carolina junior capital firm with offices in Mount Pleasant and Greenville. It puts $5 million to $25 million into each company, mostly as subordinated or term debt paired with an equity co-investment. It is not a control buyer. It usually backs another firm's purchase, sitting behind independent sponsors, private equity groups and family offices, though it also works directly with owners and managers on buyouts, recapitalizations, growth capital and refinancings. Its floor is $2 million of EBITDA and $10 million of revenue.

The firm reports $470 million of assets and 41 platform investments, and its current fund closed at $262 million in May 2024. It prefers the southern US but has invested as far away as Wisconsin and the Pacific Northwest, and it leans toward niche manufacturing, value-added distribution, business services and consumer products. A smaller owner is most likely to meet Route 2 through the sponsor buying the company, or as an add-on to a business it already finances.

Recent deals

Announced in the 24 months before November 4, 2026.

DateCompanyTypeSectorSource
Oct 2026Add-on for Florida Powertrain (target not named)One of two add-ons Route 2 supported in the third quarter of 2026Add-onDistributionSource
Oct 2026Add-on for Roebuck Landscaping (target not named)One of two add-ons Route 2 supported in the third quarter of 2026Add-onSource
August 2026Paramount PlacementTerm debt and equity co-investment from Fund II in a skilled trades staffing companyPlatformSource
Jul 2026Add-on for Artistry in Motion (target not named)One of three add-ons Route 2 supported in the first half of 2026Add-onIndustrial & ManufacturingSource
Jul 2026Add-on for Turning Art (target not named)One of three add-ons Route 2 supported in the first half of 2026Add-onSource
Jul 2026Add-on for Keymark (target not named)One of three add-ons Route 2 supported in the first half of 2026Add-onSoftware & SaaSSource
Jul 2026Convert IT MarketingFund I investment exited in the first half of 2026; buyer not namedExitSource
Jul 2026Prospect MoldFund II investment exited in the first half of 2026; buyer not namedExitIndustrial & ManufacturingSource
July 2026Confidential third party logistics companyTerm debt and equity co-investment from Fund IIPlatformTransportation & LogisticsSource
June 2026Event services company (not named)Term debt and equity co-investment from Fund IIPlatformSource
May 2026Measurement and Calibration ComponentsTerm debt and equity co-investment from Fund II in a maker of optical calibration targetsPlatformIndustrial & ManufacturingSource
Jan 2026Xybix SystemsDebt and equity alongside Highland Rim Capital's purchase of the Denver-area workstation maker; the founders keep a working linkPlatformIndustrial & ManufacturingSource
Dec 2025Florida Powertrain & HydraulicsDebt and equity with Northcreek Mezzanine behind Winterford Capital; the second-generation owners stay in chargePlatformDistributionSource
Jun 2025DAC InternationalSubordinated debt and equity behind Addtronics, a Kaho Partners company, buying this California lens equipment makerAdd-onIndustrial & ManufacturingSource
May 20253P ProcessingSubordinated debt and equity behind Littlejohn Capital's purchase of this Wichita aerospace finishing companyPlatformIndustrial & ManufacturingSource
December 2024CompassMSPFund I exitExitSource

Portfolio by sector

From the firm's portfolio page S5.

Aerospace & Defense

  • 3P Processing
  • Reliance Aircraft International
  • Solestra Group

Business Services

  • Ceto
  • Complete Production Resources
  • Crew One Productions
  • Florida Powertrain
  • Hi-Tek Data
  • Inland Empire Distribution Systems
  • Keymark
  • Level Agency
  • Microcall
  • Monument Advocacy
  • Paramount Placement
  • RB Fire United
  • Roebuck Landscaping
  • Turning Art

Consumer Products

  • Barton Watch Bands
  • Big Dot of Happiness
  • Maxxsonics

Consumer Services

  • Super Home Services Active (unconfirmed)

Healthcare

  • T Management

Manufacturing

  • Addtronics
  • Artistry in Motion
  • JK Findings
  • Joe Tools
  • Measurement and Calibration Components
  • Palmetto Adhesives
  • PGF Technology Group
  • Storage Products Group
  • Xybix Systems

Niche Distribution

  • Efinea Metals (National Electronic Alloys)

Past investments: Advanced Global Resources, Axim Geospatial, CompassMSP, Convert IT Marketing, Fumex, Intrepid Solutions, Prospect, Super Heat & Air, Tarsus

Greymont’s take

How Route 2 Capital Partners fits a seller

Route 2 would seldom lead the sale of a company. For most owners it appears as part of the financing behind the buyer, so the first question is who will control the business after closing. In its recent deals that was another firm, such as Highland Rim at Xybix or Winterford at Florida Powertrain, whose second-generation owners stayed in charge.

It suits owners who want to stay in control or hand the company to managers. Fumex used it as sole financial partner through an ownership change, and Joe Tools worked with it directly alongside management. Because most of its money comes as debt, ask what the interest and repayment terms will do to cash flow, and where any equity you keep ranks behind Route 2. If a sponsor brings Route 2 in, ask who decides when results fall short.

Questions owners ask

Does Route 2 Capital Partners buy companies outright?

Rarely on its own. It provides mezzanine debt with an equity co-investment, usually alongside the independent sponsor, private equity group or family office that is making the purchase. Its recent investments in Xybix, Florida Powertrain and 3P Processing all followed that pattern.

How big does a company need to be for Route 2?

Route 2 looks for at least $2 million of EBITDA and $10 million of revenue, with a proven business model and a defensible market position. It invests $5 million to $25 million in each company.

Can an owner work with Route 2 without a private equity sponsor?

Yes. It says it invests in both sponsored and non-sponsored deals and partners directly with management teams. Its portfolio page lists Joe Tools as a deal done directly with management, and Fumex as direct support for a management buyout.

Does Route 2 only invest in the South?

No. It states a preference for southern companies, but its fact sheet says US based, and recent investments include Xybix near Denver, 3P Processing in Wichita and a logistics company in the Inland Pacific Northwest.

Sources

  1. S1Route 2 Capital Partners home page Accessed November 4, 2026
  2. S2Route 2 Capital Partners: About Accessed November 4, 2026
  3. S3Route 2 Capital Partners: Portfolio Accessed November 4, 2026
  4. S4Route 2 Capital Partners: Focus and investment criteria Accessed November 4, 2026
  5. S5R2CP Fact Sheet (PDF last modified October 2, 2026) Accessed November 4, 2026
  6. S6Route 2 Capital Partners Announces Final Close of Fund II (May 29, 2024) Accessed November 4, 2026
  7. S7R2CP Raises $206 million for Inaugural Junior Capital Fund (June 19, 2019) Accessed November 4, 2026
  8. S8Route 2 Capital Partners: Team Update & Recent Activity (October 27, 2026) Accessed November 4, 2026
  9. S9Route 2 Capital Partners: 2026 Mid-Year Review (July 29, 2026) Accessed November 4, 2026
  10. S10Route 2 Capital Partners Invests in Xybix Systems (January 30, 2026) Accessed November 4, 2026
  11. S11Route 2 Capital Partners Invests in Florida Powertrain & Hydraulics (December 9, 2025) Accessed November 4, 2026
  12. S12Route 2 Capital Partners Supports Addtronics' Acquisition of DAC International (June 4, 2025) Accessed November 4, 2026
  13. S13Route 2 Capital Partners Invests in 3P Processing (May 2, 2025) Accessed November 4, 2026
  14. S14Route 2 Capital Partners: 2024 Year in Review (January 28, 2025) Accessed November 4, 2026
  15. S15R2CP Invests in Super Home Services, LLC (January 18, 2022) Accessed November 4, 2026
  16. S16R2CP Invests in National Electronic Alloys (June 21, 2022) Accessed November 4, 2026
  17. S17R2CP Invests in Live Event Special Effects Company (December 14, 2023) Accessed November 4, 2026

Compiled by Greymont Advisors from public sources, including the firm’s own website and press releases. Greymont is not affiliated with Route 2 Capital Partners. Figures are as reported on the dates shown and may have changed. Request a correction

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