Top Private Equity Firms in Dallas, Texas

Dallas, Texas, is a thriving business hub and home to some of the leading private equity (PE) firms in the United States. These firms invest across diverse industries, from energy to healthcare, helping businesses grow and achieve their full potential.

In this article, we’ll highlight the top private equity firms in Dallas, focusing on their portfolios, investment strategies, and notable contributions to the industry.

Lone Star Funds

Founded in 1995 by John Grayken, Lone Star Funds is a prominent private equity firm headquartered in Dallas, Texas. The firm specializes in investments across real estate, corporate equity, credit, and other financial assets. Since its inception, Lone Star has organized 25 funds with aggregate capital commitments totaling approximately $95 billion.

Lone Star's investment strategy focuses on markets experiencing economic or banking crises, capitalizing on dislocated asset pricing and value opportunities. The firm has a global presence, with investments spanning the United States, Western Europe, and East Asia.

Notable investments include distressed loans and commercial properties, where Lone Star's expertise in turnaround strategies has delivered substantial returns.

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Highland Capital Management

Highland Capital Management, L.P., headquartered in Dallas, Texas, is a prominent alternative investment firm specializing in credit strategies, private equity, and real estate. Founded in 1993 by James Dondero and Mark Okada, the firm has established a global presence, managing approximately $20 billion in assets across various industries.

In the private equity domain, Highland has invested in sectors such as healthcare, energy, and technology. A notable example is their acquisition of American HomePatient, a leading provider of home respiratory therapy. In 2010, Highland completed a public-to-private transition for American HomePatient, aiming to enhance the company's long-term value and success.

This strategic move demonstrated Highland's capability to create value through restructuring and growth-focused initiatives.

Trive Capital

Founded in 2012, Trive Capital is a Dallas-based private equity firm specializing in middle-market companies. The firm focuses on investing equity and debt in strategically viable businesses with the potential for transformational upside through operational improvement. Trive emphasizes a hands-on partnership approach, identifying and implementing value creation ideas to maximize returns.

Trive's diverse portfolio spans industries such as aerospace, defense, and consumer products. A notable investment is Valence Surface Technologies, a leading independent provider of aerospace surface finishing services.

CIC Partners

CIC Partners, based in Dallas, Texas, is a middle-market private equity firm that invests in growth-oriented companies primarily in the food, restaurant, industrial, and healthcare industries. The firm manages the personal capital of its investment team, Operating Partners, and strategic investors, seeking to partner with owner-operators, founders, and management teams.

A notable investment by CIC Partners is their involvement with Dickey’s Barbecue Pit, the world’s largest barbecue concept. Founded in 1941, Dickey's has expanded to over 866 restaurants across eight concepts in the U.S. and several countries. Under the leadership of Roland Dickey, Jr., CEO of Dickey’s Capital Group, and Laura Rea Dickey, CEO of Dickey’s Barbecue Pit, Inc., the brand continues to grow, with recent expansions into Ontario, Canada.

Pharos Capital Group

Pharos Capital Group, established in 1998 and headquartered in Dallas and Nashville, is a physician-founded private equity firm specializing in healthcare investments. The firm focuses on growing companies that aim to improve patient outcomes, increase access to care, and lower healthcare costs, particularly in underserved areas and among complex populations.

Pharos typically invests $25 to $50 million in rapidly growing middle-market companies seeking later-stage funding for internal growth, acquisitions, leveraged buyouts, management buyouts, or recapitalizations. Their investment strategy emphasizes value-based care, targeting sectors such as healthcare services, technology, and products.

A notable investment by Pharos is their majority stake in RhythMedix, a leading manufacturer and provider of remote cardiac monitoring systems and related services. This partnership aims to enhance RhythMedix's growth and innovation in the cardiac monitoring market, improving patient outcomes and reducing healthcare costs.

Kainos Capital

Kainos Capital is a middle market private equity firm located in Dallas specializing in the food and consumer products sectors. The firm focuses on partnering with family-owned businesses and corporate carve-outs, aiming to drive transformational growth through strategic investments and operational enhancements.

In February 2023, Kainos Capital announced the successful closing of its third fund, Kainos Capital Partners III LP, with over $1 billion in capital commitments. This fund targets investments in North American food and consumer businesses, continuing the firm's strategy of building a diversified portfolio in these sectors.

A notable investment by Kainos is their acquisition of Muenster Milling, a fourth-generation, family-owned pet food and ingredient manufacturer based in Texas. This partnership aims to expand Muenster's manufacturing capabilities and product offerings, leveraging Kainos's operational resources and industry relationships.

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Red River Equity Partners

Red River Equity Partners, based in Dallas, Texas, is a private investment firm specializing in acquiring controlling positions in middle-market companies across diverse industries. The firm focuses on partnering with management teams to implement strategic initiatives aimed at sustainable growth and value creation.

Red River's investment strategy emphasizes aligning incentives with management, motivating teams, and mitigating downside risk through focused corporate strategies. The firm has successfully invested in and advised over 35 middle-market companies, demonstrating a commitment to building long-term value.

A notable investment includes their partnership with 1888 Industrial Services, a company specializing in commercial services. This investment reflects Red River's focus on sectors such as business services, energy, light manufacturing, and technology.

Let’s Recap

Dallas, Texas, is a powerhouse in the private equity world, with firms that excel in creating value across a range of industries. These firms contribute to the growth and success of companies through strategic investments, operational expertise, and long-term partnerships.

If you're an entrepreneur or a business owner looking to take your company to the next level, connecting with the right private equity firm is crucial. Private Equity List simplifies the process, providing an easy-to-use platform to identify relevant investors.

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With global perspective (incl. US, EU and UK) and special focus on regions like the Middle East, Africa, Pan-Asia, and Central and Eastern Europe, Private Equity List provides vital info on investors, such as how much they invest, what regions and industries they're interested in, and how to contact key team members. This means you get everything you need to find, check out, and reach out to potential investors for your project. We also pay attention to early stage founders.

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Frequently Asked Questions

What makes Dallas a prime location for private equity firms?

Dallas boasts a diverse economy, strategic geographic location, and access to top talent, making it an ideal hub for private equity investments.

How do private equity firms in Dallas differ from others?

Many Dallas-based private equity firms focus on industries with strong local ties, such as energy, real estate, and healthcare, while leveraging the city's business-friendly environment.

What are some key industries targeted by Dallas private equity firms?

Private equity firms in Dallas typically invest in sectors like energy, technology, healthcare, industrials, and consumer goods.

How can private equity firms help businesses grow?

Private equity firms provide capital, strategic guidance, and operational expertise, helping businesses scale, enter new markets, and enhance efficiency.

Are private equity firms in Dallas involved in global investments?

Yes, many Dallas-based firms, such as Lone Star Funds and Highland Capital Management, have a global presence and invest in markets worldwide.