Lower middle market buy-and-build private equity firm
Sole Source Capital
- HeadquartersDallas, TX S6
- Founded2016 S2
- Websitesolesourcecapital.com
- Last verifiedOctober 26, 2026
At a glance
| EBITDA range | $1M to $25M S3 |
|---|---|
| Deal types | Platform, Add-on S3 |
| Geography | North America S3 |
| Sectors | IT Services & MSP, Environmental & Waste, Construction Services, Industrial & Manufacturing, Distribution |
What Sole Source Capital buys
Sole Source Capital is a Dallas private equity firm, with a second office in Santa Monica, that David Fredston founded in 2016. It buys majority control of founder-owned and family-owned companies in industrial and business services, and it also does corporate carve-outs. The playbook is buy-and-build: back a platform in a large, fragmented market, then add competitors and neighboring businesses. Peak Technologies alone had made 18 add-ons by May 2025.
For a platform it wants a North American company with up to $25 million of EBITDA, little customer concentration and room for long-term growth. Add-ons can be smaller, with $1 million to $20 million of EBITDA, and should share customers or services with a current holding. The second fund closed at a $555 million hard cap in 2021. In January 2026 Brite, a cybersecurity and managed IT provider, became the first platform of SSC Partners Fund III, and a second new platform, in utility infrastructure services, followed in June. It also pays referral fees for introductions that lead to a closed deal.
Recent deals
Announced in the 24 months before October 26, 2026.
| Date | Company | Type | Sector | Source |
|---|---|---|---|---|
| June 2026 | Source Power & Taylor ElectricFounder-owned engineering, construction and maintenance contractors for power lines, substations and telecom infrastructure, based in San Antonio, TX and Huntsville, AL | Platform | Construction Services | Source |
| Jan 2026 | BriteVictor, NY cybersecurity and managed IT provider founded in 1983; first platform of SSC Partners Fund III, with the CEO and president staying in their roles | Platform | IT Services & MSP | Source |
| May 2025 | Automation IntelligenceFlint, MI robotics and machine vision integrator added to Peak Technologies, its 18th add-on under Sole Source | Add-on | Industrial & Manufacturing | Source |
Portfolio by sector
From the firm's portfolio page S5.
Distribution
- Lee Fish
Environmental Services
- GrayMar Environmental
Industrial Automation
- Peak Technologies
- Supply Chain Services
IT Services
- Brite
Packaging
- I.D. Images
- Dallas Plastics
Services
- PowerX
Utility Services
- Source Power & Taylor Electric
Past investments: Worldwide Produce, Individual FoodService, Premier Flow Control, Cantium
Greymont’s take
How Sole Source Capital fits a seller
Sole Source suits an owner who wants a buyer with committed capital and a clear plan to grow by acquisition. Managed IT and cybersecurity owners should note that Brite is a brand-new platform the firm says it intends to scale in a fragmented market, so add-on demand there should be real. Owners of environmental services, electrical testing, label, packaging film or seafood distribution businesses may fit GrayMar, PowerX, I.D. Images, Dallas Plastics or Lee Fish as add-ons.
In the Brite deal the CEO, president and the rest of management kept their roles, and the firm says it can offer full liquidity, a partial rollover or growth capital. Because its operating partners work on site at portfolio companies, an owner should ask how much of the business will change after closing, how much equity the firm expects them to roll, and whether the company will be merged with other add-ons.
Questions owners ask
What size companies does Sole Source Capital buy?
Platforms based in North America with up to $25 million of EBITDA, and add-ons with roughly $1 million to $20 million of EBITDA that fit one of its existing companies. It takes majority control.
Does Sole Source buy IT services or cybersecurity companies?
Yes. In January 2026 it bought Brite, a cybersecurity and managed IT provider founded in 1983 in Victor, New York, as the first platform of SSC Partners Fund III, and said it sees room to grow in that fragmented market.
Does Sole Source invest in environmental services?
Yes. In September 2024 it bought GrayMar Environmental, a New Jersey company that handles waste management and transportation, remediation, field services and emergency response. GrayMar is still listed as a current holding.
Does management stay after a Sole Source deal?
Often, yes. In the Brite deal the CEO, president and wider management team kept their roles, and the firm's page for owners says founder and family teams can stay involved where they want to.
Sources
- S1Sole Source Capital home page Accessed October 26, 2026
- S2Sole Source Capital: About (firm history timeline) Accessed October 26, 2026
- S3Sole Source Capital: Approach (investment criteria) Accessed October 26, 2026
- S4Sole Source Capital: For Business Owners Accessed October 26, 2026
- S5Sole Source Capital: Portfolio Accessed October 26, 2026
- S6Sole Source Capital: Contact (Dallas headquarters) Accessed October 26, 2026
- S7Sole Source Capital Acquires Brite, a Cybersecurity & Managed Services Provider (January 12, 2026) Accessed October 26, 2026
- S8Sole Source Capital portfolio: Source Power & Taylor Electric Accessed October 26, 2026
- S9Sole Source Capital portfolio: GrayMar Environmental Accessed October 26, 2026
- S10Peak Technologies Acquires Automation Intelligence (May 12, 2025) Accessed October 26, 2026
- S11Sole Source Capital Recognized for a Second Consecutive Year by PitchBook (August 5, 2026) Accessed October 26, 2026
Compiled by Greymont Advisors from public sources, including the firm’s own website and press releases. Greymont is not affiliated with Sole Source Capital. Figures are as reported on the dates shown and may have changed. Request a correction