Capitala Group, a provider of capital to lower middle market companies, announced that it has entered into a strategic partnership with, and sold a minority non-controlling interest of its management firm to Mitsui & Co. (U.S.A.), Inc. (“Mitsui USA”).  Mitsui USA is a wholly-owned subsidiary of Mitsui & Co., Ltd., one of the most diversified and comprehensive trading, investment, and service enterprises in the world.  The partnership combines Capitala’s proven 20-year track record with Mitsui USA’s global reach and capabilities.

“For 20 years, Capitala Group has invested and supported lower middle market businesses, and this partnership with Mitsui USA allows Capitala to further develop its best-in-class investment platform,” said Capitala CEO, Joseph B. Alala, III.  “By entering into a partnership with Mitsui USA, Capitala has chosen the best partner to provide the firm with substantial resources for the growth of its equity and credit strategies focused on small businesses located throughout North America.  Mitsui USA also provides unparalleled access to the Asian market for Capitala.”

“Mitsui USA enjoys a long history of partnering with innovative market leaders, fostering their vision, and helping to create value together. We are excited to support Joe and his team in the next phase of Capitala’s growth,” said Matthew Maher, who leads Mitsui USA’s Private Equity business.

Shigeyuki Toya, Senior Vice President of Mitsui USA’s Financial and New Business Division, added, “Capitala’s platform was attractive to Mitsui USA due to its long-term performance, management vision, strong culture, and dedicated service to partners, portfolio companies, and investors.”
Terms of the transaction were not disclosed.  Capitala’s current management team will remain in place, continue to execute their vision, investment process, and provide day-to-day management.

Nomura Securities International acted as exclusive financial advisor to Capitala Group in the transaction.  Robinson, Bradshaw & Hinson, P.A. served as legal counsel to Capitala Group.  Debevoise & Plimpton LLP served as legal counsel to Mitsui USA.