Highland Rim Capital, co-founded in 2022 by a trio of former executives at Gen Cap America, is raising money for a $200 million debut buyout fund.
Founder and Partners Chris Godwin, Mark Isaacs and Matt Lane have hired placement agent Eaton Partners, a Stifel company, to help raise the pool, according to a recent regulatory filing for Highland Rim Capital Partners A LP fund and a parallel fund.
Executives at Brentwood, Tennessee-based Highland Rim Capital could not be reached for comment as of press time to learn more about the fundraise or any hiring plans. The firm’s team page lists only the three founders, suggesting it will need to hire junior and perhaps mid-level investment professionals, along with back-office staff.
The Founders: Godwin, Isaacs and Lane all previously served as managing directors at Nashville, Tennessee-based Gen Cap America, which specializes in management-led buyouts in the middle and lower-middle markets. Each of them worked for the firm for at least 14 years, according to their LinkedIn profiles. Before that, Godwin worked as a vice president at Draupnir, Isaacs as a principal at First Avenue Partners, and Lane as a vice president at Banc of America Securities.
Investment Strategy: At Highland Rim Capital the three partners plan to sponsor management buyouts and related transactions in light manufacturing, value-add distribution and business services. The firm targets lower-middle-market companies located in the U.S. South and Midwest generating EBITDA of $2.5 million to $10 million. Transactions of interest include family successions, founder retirements, and corporate divestitures.
Sector Experience: During the time the founders spent at Gen Cap America, the firm acquired lab animal research equipment manufacturer Lab Products, newborn screening filter paper manufacturer Eastern Business Forms and facility cleaning provider TFM Services. Godwin, Isaacs and Lane each has served on at least 10 boards.
Prior Firm: Gen Cap America, founded in 1988 by President and Chief Executive Officer Barney D. Byrd, managed about $388.8 million in discretionary assets at the end of 2023. The firm has about 18 portfolio companies operating in consumer products, flow control, food, infrastructure, medical and packaging.