A small business investment firm
Line 5 Capital is a small business investment firm partnering with owner operated small businesses and elite veterans to preserve legacies, protect jobs and grow companies.
Line 5 Capital: Three Core Beliefs
As we seek opportunities to invest in small businesses we recognize three core themes.
One – there is a generation of small business owner-operators who’ve developed exceptional companies and are looking for:
- An exit from running the business
- Realization of the value they’ve created
- Opportunity to preserve their legacy
- Preservation of their employees livelihoods
Two – the veteran community is both under-utilized and a source of top-decile leadership talent. Many elite veterans are looking for:
- An opportunity to continue to lead organizations
- The chance to create value for themselves and other
- The ability to impact their communities in a positive way
Three – marrying these two, small business owners with exceptional veteran talent has the potential to preserve legacies, job and grow micro-cap businesses while creating significant value for
- Owners
- Veterans
- Investors
Where We Invest
The triangle anchored by Nashville, Atlanta and Charlotte is home to three major markets and four secondary markets with a combined growth rate of four times the national average and over 900,000 small businesses.
This region is home, Line 5 Capital is proudly headquartered in the Nashville metro area with deep roots across the region.
Criteria for Small Business Investment
- Stable revenue, $10 – 50mm
- EBITDA, $2 – 7mm
- B2B services businesses
- Revenue not linked to a special category (SDVOB, etc)
- Owner-operator seeking an exit from day-to-day management on a 2+ year timeline
Structure
- Majority acquisitions where Line 5 acquires 51-80% of the existing business
- Seller’s participating in future economics through retained minority equity, a revaluing note and/or earnout
Criteria for the Vet - to -Exec Program
- 10-20 years of service
- A variety of leadership roles
- Graduation from a rigorous training pipeline (SF selection, fighter pilots, BUDS, etc)
- Exceptional written and oral communication skills
Structure
- Direct hire into existing portfolio companies
- Skill-bridge internships
- Fellowships concurrent with active duty