Southfield Capital is an investment firm managing private funds that invest in equity and subordinated debt of U.S. companies. They aim to grow lower middle market companies through organic growth and acquisitions. Southfield's mezzanine debt team provides financing to U.S. businesses, seeking to enhance returns through the Small Business Administration's program. Southfield manages these investments with the goal of maximizing value for its investors.
Fee Structure
Southfield Capital manages investments for private funds, not individual investors. They charge a management fee and a performance-based fee (carry) to these funds. The management fee is generally 2% annually of the fund's capital during the investment period, reducing to 2% of the lesser of fair market value or cost basis after the investment period. A 20% performance-based fee is also charged, subject to investors receiving an 8% return on their invested capital first. Some funds have variable performance fees or none at all.