Prox Search Capital
At a Glance
Two numbers most firms will not publish, from a firm that publishes little else.
- Pricing
- Custom Pricing, Two numbers on its own site and no others: 'Investment Size: $200K - $1M' and 'Ownership Target: Minority Equity Positions of 10% - 40%'. It looks for 'EBITDA of $500k - $3.5M'. Nothing published on fees, board rights or vesting.
- Best For
- A self-funded searcher who wants to know the dilution before the conversation rather than after it
- Track Record
- Publishes no founding year, portfolio or deal count, so its record cannot be read from its own site.
- Lane
- Self-Funded
- Funds
- The deal only
- Based
- United States, industry agnostic; no statement about backing searchers elsewhere.
- Invests
- Companies with $500k to $3.5M of EBITDA, profitable, with limited customer concentration and a seller leaving for a reason.
- Published Terms
- Investments of $200K to $1M, for a minority position of 10% to 40%.
- Roadmap Stages
- 3. Set Up & Fund the Search5. Diligence & Close the Deal
Pros and Cons
Pros
- Publishes a check size and an ownership range together, which answers the self-funded searcher's first question
- Takes minority positions explicitly, stated rather than implied
- An earnings floor of $500k sits at the bottom of the band this site is written for
- Says it will back an independent sponsor who intends to operate, a distinction most sites blur
Cons
- No founding year, no portfolio and no deal count, so the site says nothing about whether it has closed anything
- Whether it funds the search itself is never resolved: it says it works with searchers at every stage and commits no money before a deal
- No fees, board rights or vesting published, so the two numbers are the whole disclosure
What Searchers Say
Check size, ownership range and earnings band read from its own site. Its team page is three profile links and its investor portal is a third-party product, so the firm's own footprint is thin outside those numbers.
How to Approach
Firms do not publish a term sheet you can prepare against, so this is how self-funded search capital comes in, what it weighs, and how to arrive ready.
The Typical Arc
- No conversation until you have a deal: gap capital comes in at the LOI, not before.
- A fast read on the specific target and your underwrite.
- An equity check to close the gap the loan and your own injection leave.
What It Weighs
- The deal itself: is the business financeable and fairly priced.
- Your underwrite, since there is no search track record to lean on.
- How much of the equity gap actually remains after the loan and your own cash.
How to Prepare
- Underwrite the specific deal end to end before you call. Underwrite a Deal
- Size the gap: sources and uses against what a lender and seller accept. Sources & Uses Builder
- Know your own number first. SBA Acquisition Calculator