Tide Rock Holdings, an Encinitas-based holding company, has raised over $100 million in capital to acquire additional business-to-business companies.
The investment marks the largest raise for Tide Rock since it was founded in 2013. The firm received funds from institutional investors, investment advisors, and family offices. It will use the capital to acquire profitable lower middle market businesses.
After a strong start in the first quarter of 2021, the holding company expects to see significant growth through the second half of the year.
“We have strong momentum right now. We have our largest and best quality deal flow pipeline to date, as well as a robust investor pipeline to kick off the next round of fundraising,” said Ryan Peddycord, chief executive officer of Tide Rock. “We are on track for 2021 to be our best year so far.”
Investor Support
Tide Rock’s investors are primarily family offices, high-net-worth individuals, and institutional investors looking for sustainable high-yield and high total returns through economic cycles.
The firm invests in businesses generating between $2 million and $7 million in EBITDA. The majority of its companies are in manufacturing, business services, and logistics. Its portfolio companies are all located mostly located in Southern California and run by successful operators, allowing them to provide open channels for peer learning and resource sharing across their portfolio.
“We are happy that our unique and successful investment model resonates with investors and are excited to have their support as we continue growing Tide Rock and its holdings,” said Brooks Kincaid, president of Tide Rock. “We’ve invested in building our growth team to continue driving top and bottom-line growth, operational excellence, and leadership development in our current and future holdings.”
Flexible Model
Tide Rock’s holding company model gives them flexibility in acquisition structure and the ability to work with business sellers to achieve their unique goals.
Unlike traditional financial buyers, we don’t use bank debt in our transactions, said Candice Marshall, chief marketing officer of Tide Rock.
“Tide Rock evaluates investment opportunities from a different perspective than traditional financial and strategic buyers,” said Marshall.
“We strive to invest in economically resilient B2B companies with attractive margins and recurring revenues, looking to grow them for the long-term.”
Companies in their portfolio include Seawind Foods, Signature Analytics, PKC, Intensity, and BeWell Network, among others.
Tide Rock is headquartered in Cardiff-by-the-Sea. It employs roughly 20 staffers in San Diego, with 500 staffers across its portfolio companies. Tide Rock has provided its investors with more than 20 consecutive quarters of equal or larger dividends.
Leadership Team
Peddycord founded Tide Rock with his own capital and backing from investors who supported him as an operator. Prior to founding Tide Rock, Peddycord was the CEO of Business.com and Resource Nation, acquired by Purch Group and ARS, eventually acquired by NPD Group.
Kincaid, heads Tide Rock’s strategy development and operations. Prior to Tide Rock, Brooks founded, ran and invested in venture capital and private equity backed businesses in technology, manufacturing and renewable energy.
He began his career in investment banking and in sales finance and strategic partnerships at Google.
Marshall, formerly served as a senior executive at Ogilvy. She brings 25 years in marketing strategy and operations specializing in industries, such as transportation, technology, and health care, among others.
Source: San Diego Business Journal
