Financial Partners of choice

for middle-market companies seeking engaged, experienced equity capital
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about us

Stonehollow Capital Partners ("Stonehollow" or "SCP") is a Texas-based, private investment firm, focused largely on direct private equity opportunities in middle-market companies that have strong management teams, solid business fundamentals, and meaningful growth potential to drive long-term equity returns.

With nearly 40 years of experience and over $2 billion of aggregate transaction experience, Stonehollow is the ideal partner for owners seeking liquidity, generational/transition events, entrepreneurs, management teams, families and owner-operators.

 

Our Guiding Tenets

- values -

We invest with the utmost standards of integrity, respect and responsibility.  We look to partner with like-minded executives, management teams and investors who share our cultural and operating philosophies.

- empowerment -

We endeavor to provide companies with the resources, knowledge and opportunities to run their businesses effectively, and the peace of mind that your capital partners will be there to provide the right type of assistance whenever it's needed.

- alignment -

We believe alignment among stakeholders is key to a successful investment and long-term value creation.  We seek management teams that have "skin in the game," and we align our interests with yours by investing our personal capital.

- entrepreneur -

Having started, and been involved with, numerous businesses and ventures, we are not a stranger to entrepreneurial environments, and we welcome the opportunity to roll up our sleeves alongside your team and do what is necessary to get the job done.

- partnership -

We are interested in business owners seeking a value-add business partner, not just a capital source.  We want to be at the table with you-- celebrating the good news, or weathering the bad.

- patience -

We employ a long-term approach to equity value creation, and we encourage continued strategic revision and investment, providing appropriate "runway" for management to execute on its vision, and optimize value, across cycles.

investment criteria

 

industry

focus

  • Business Services
  • Energy
 
  • Financial Services
  • Food & Beverage
     
  • Industrial & Manufacturing
  • Transportation & Logistics

investment

characteristics

  • Minimum EBITDA of $20 million
     
  • Strong, driven and experienced Management
     
  • Proven business model with stable operating margins
  • Significant free cash flow generation
     
  • Ability to manage across business cycles

investment

approach

  • Minimum investment size of $25 million; common and preferred equity
     
  • Creative, flexible structuring
     
  • Emphasis on control investing; selectively consider minority with proper governance and alignment
     
  • Disciplined approach to managing risk

transaction

types

  • Acquisition / "Roll-up"
 
  • Capital Projects / Expansion
  • Family succession /transition
  • Management Buy-out
  • Recapitalization
Note: Precedent Transactions include investments made by SCP Principals at prior firms.

precedent transactions

 

A SELECTION OF INVESTMENTS DEMONSTRATING THE BREADTH AND CAPABILITIES OF SCP's PRINCIPALS

investment principals

The Stonehollow Principals have nearly 40 years of experience with middle market companies. A complimentary blend of investing and operating perspective from varied experiences as asset managers, principal investors, investment bankers and entrepreneurs. their track record includes over $2 billion of principal investing and advisory mandates. 

Jonathan M. Shepko is a Managing Partner and Co-Founder of Stonehollow Capital Partners (“SCP” or the “Firm”), which makes direct equity investments in private companies, across the United States. Mr. Shepko is active across all areas of the Firm, with emphasis on the monitoring and management of portfolio companies and investments.

Prior to founding SCP in January 2019, from 2014 to 2018, Mr. Shepko served as a Managing Partner of EF Capital Management (“EFC”), the investment arm of a substantial single-family office, which largely focused on direct debt and equity investments, in both public and private companies, across the United States.  Mr. Shepko’s primary responsibilities at EFC involved monitoring and managing EFC’s portfolio companies, which included serving in various management and board capacities of EFC’s portfolio investments.

Prior to EFC, Mr. Shepko was a Managing Director with Ares Management, LP, where he focused on originating and structuring debt financings in the energy industry. Prior to Ares, from 2009 to 2013, Mr. Shepko formed, co-headed, and served as Managing Director of, CLG Energy Finance (an affiliate of Beal Bank) which focused on providing senior-stretch and uni-tranche facilities to the energy and infrastructure industries. Prior to forming CLG Energy Finance, Mr. Shepko was a Vice President with EnCap Investments, LP, where his responsibilities included originating, structuring and managing private equity investments in the oil and gas sector, while also serving on the boards of several of these companies. 

Mr. Shepko graudated magna cum laude from Texas A&M University with a Bachelor's of Business Administration degree in Finance.

"Stonehollow is focused on growth-oriented private equity opportunities, where the convergence of strong, engaged management teams, outstanding business fundamentals and an opportunistic strategic landscape provide a path to long-term equity value appreciation."

MANAGING PARTNER

Jonathan M. Shepko

(Hover to view bio)
 

MANAGING PARTNER

"stonehollow believes in building relationships with business owners, management teams and entrepreneurs, partnering with and empowering each to operate their businesses effectively, while respecting the culture that made the company successful in the first place."

Steven j. Reed

Steven J. Reed, CFA, is a Managing Partner and Co-Founder of Stonehollow Capital Partners (“SCP” or the “Firm”) which makes direct equity investments in private companies, across the United States. Mr. Reed is active across all areas of the Firm, with emphasis on sourcing and evaluating new investment opportunities.

Prior to founding SCP in January 2019, from 2014 to 2018, Mr. Reed served as a Managing Partner of EF Capital Management (“EFC”), the investment arm of a substantial single-family office, which largely focused on  direct debt and equity investments, in both public and private companies, across the United States.  Mr. Reed’s primary responsibilities at EFC involved sourcing and evaluating new investment opportunities, which included serving in various board capacities of EFC’s portfolio investments.

Prior to EFC, Mr. Reed was a Partner and Founding Member of BankCap Partners, a private equity firm focused on investments in the financial services industry. In his role at BankCap Partners, which he joined in 2005, Mr. Reed was responsible for the full life cycle of investment activities from sourcing to realization, originating and maintaining investor relationships and working closely with and advising portfolio companies in the areas of capital markets, mergers and acquisitions and corporate and strategic planning.  Mr. Reed began his career as an investment banker at Bear, Stearns & Co. in the Financial Institutions Group. After Bear, Stearns & Co., Mr. Reed joined Houlihan Lokey, a middle-market investment bank, where he worked in the Corporate Finance and Restructuring groups. 

Mr. Reed graduated magna cum laude from Texas A&M University with a Bachelor’s of Business Administration degree in Finance and holds the Chartered Financial Analyst designation.       

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1909 Woodall Rodgers Fwy

Suite 500

Dallas, TX 75201

info@stonehollowcp.com


Tel: 214.740.6140

CONTACT US

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