| Marwit Capital was founded as “Marwit Capital Corp.” in 1962 by Martin W. Witte (1918-1997) as one of the first licensed Small Business Investment Companies (SBICs) in the United States. During the first 32 years of its existence, Marwit was an active investor in middle market businesses throughout the U.S., and in every layer of the capital structure, including senior secured high yield debt, subordinated debt, and preferred and common stock. During this first generation of Marwit, the firm invested exclusively its own capital, and partnered on many of its transactions with other investment firms. |
In 1994, the next generation of Marwit was born with the formation of Marwit Capital, LLC by Matthew L. Witte and Chris L. Britt, the two Partners that have directed the firm for the past decade. Marwit’s investment approach was sharpened in the mid-1990s to focus on providing structured equity and junior debt for buyouts and growth transactions involving predominantly California based businesses operating at the lower end of the middle market. The investment discipline included control and non-control investments, and in each case involved partnering with an existing management team or hard charging industry entrepreneur.
With the formation of Marwit Capital, LLC in the mid-1990s, the firm accepted limited partner investors for the first time in its history to supplement its own capital. Those capital partners were high net worth individuals, including many successful entrepreneurs and retired business executives. Marwit Capital, LLC invested in and served as financial sponsor for 25 portfolio companies, generally investing $1 to $5 million per company in one or a series of investments, in most cases, and served as lead investor or sponsor, though in some instances the firm partnered with co-investors including other private equity firms where the total capital being invested was $10 to $50 million.
In August 2007, the firm held the final closing of Marwit Capital Partners II, L.P. (“Fund II”) at $184 million. Investors include several prominent pension funds, endowments, foundations and financial institutions, as well as high net worth investors from its prior fund. Through Q2 2008, Fund II has acquired 10 Platform companies and completed several add-on acquisitions.
Today, among businesses based in California and the Western U.S. with revenues of $20 to $100 million, and the banks, attorneys, CPA firms, and consultants that advise them, Marwit is a recognized leader in backing existing management teams in acquiring the businesses they manage from a retiring or corporate owner(s), and in partnering with hard charging entrepreneurs in pursuing platform acquisition and build up strategies in specific industries.
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