Top 8 Private Equity Firms In Dallas

1. Lone Star Funds

Lone Star Funds is a prominent global private equity firm headquartered in Dallas, Texas. Since its establishment in 1995, the firm has become a leading force in the private equity sector, advising funds that have amassed capital commitments of approximately $95 billion across 25 funds.

The firm’s investment strategy is defined by its ability to seize opportunities during market dislocations and economic crises. Lone Star targets markets where liquidity is constrained and financial institutions face pressure to divest assets. This approach enables them to acquire value-driven assets at competitive prices, leveraging their expansive global network and capacity to deploy substantial capital swiftly.

Lone Star Funds boasts a diverse investment portfolio, including equity and debt investments in corporate equity, real estate, and other financial assets. Their focus lies in control investments in financially oriented and operating companies, as well as securitized products like residential and commercial mortgage-backed securities.

A streamlined approval process and a dedicated asset management platform are integral to their investment strategy, ensuring efficient and effective management of assets.

The firm’s investor base is remarkably diverse, comprising entities such as corporate and public pension funds, sovereign wealth funds, university endowments, foundations, funds of funds, and high-net-worth individuals. This broad investor base reflects the firm’s credibility and the trust placed in its investment strategies.

2. Highland Capital Management

Highland Capital Management, founded in 1993 by Jim Dondero and Mark Okada, is a leading alternative investment management firm headquartered in Dallas, Texas. Over the years, it has grown into a multibillion-dollar global platform, specializing in diverse investment strategies such as private equity, debt, infrastructure, and real estate investments.

The firm is renowned for its broad investment expertise, managing various financial vehicles including hedge funds, structured investment vehicles, and mutual funds. A standout offering is the Highland Floating Rate Opportunities Fund (NYSE: HFRO), which has earned accolades such as being recognized by Morningstar as the number one Bank Loan Fund for one, three, and five-year periods.

Highland Capital has also made notable advancements in the exchange-traded fund (ETF) market. Through its SEC-registered subsidiary, Highland Capital Management Fund Advisors, the firm manages ETFs based on research from Hedge Fund Research, Inc. These include the Highland HFR Global ETF, Highland HFR Event Driven ETF, and Highland HFR Equity Hedge ETF, all actively traded on the New York Stock Exchange.

Beyond its investment ventures, Highland Capital Management has been involved in significant real estate transactions. A prominent example is the acquisition of Cityplace Tower in August 2018 from Parmenter Realty Partners and Angelo, Gordon & Co. This deal was one of the largest building sales in Dallas that year, showcasing the firm’s strategic prowess in real estate.

While the firm has faced legal challenges, including a Chapter 11 bankruptcy filing by one of its entities, it has shown remarkable resilience and a commitment to reorganization. Highland Capital has implemented governance changes, such as appointing independent directors, to address these challenges and ensure its operations continue smoothly.

3. Trive Capital

Trive Capital, established in 2012 and headquartered in Dallas, Texas, is a private equity firm that has built a strong reputation in the middle-market sector. With over $4 billion in aggregated capital commitments and more than $7 billion in regulatory assets under management, Trive Capital stands out as a significant player in the private equity industry.

The firm’s investment strategy focuses on delivering flexible equity and debt capital solutions to middle-market businesses. Trive specializes in addressing complex situations, such as family-owned businesses and corporate carve-outs, where they can apply their hands-on operational expertise to foster long-term value creation. Their approach relies on a partnership model, working closely with entrepreneurs and management teams to design tailored capital solutions that align with each company’s unique needs.

Trive Capital’s portfolio is notably diverse, encompassing various industry sectors. To date, the firm has completed over 250 transactions and manages a portfolio with combined revenues exceeding $10 billion. Some of their prominent portfolio companies include Accelint, AEVEX, AGM Automotive, and Amteck, among others.

These companies benefit from Trive’s emphasis on operational improvements and collaborative partnerships, which are essential for driving value creation across different economic cycles.

Trive Capital’s success is further bolstered by its strong relationships with financial intermediaries and other capital sources. The firm’s extensive network of operational resources and its dedication to fostering collaborative partnerships with management teams are integral to its investment philosophy. This approach has earned Trive Capital industry recognition, including being named a TOP 50 PE Winner in 2025.

4. CIC Partners

CIC Partners, established in 2001 and based in Dallas, Texas, is a middle-market private equity firm recognized for its specialized approach to investing in growth-focused companies. The firm primarily targets the food, restaurant, industrial, and healthcare industries, leveraging the extensive expertise of its investment team and Operating Partners to deliver substantial value to its portfolio companies.

What sets CIC Partners apart is its strong focus on collaborative partnerships with owner-operators, founders, and management teams. This emphasis on collaboration, reflected in the firm’s name, is a cornerstone of its investment strategy.

By working closely with these stakeholders, CIC Partners enables its portfolio companies to achieve sustained success and growth. Since its inception, the firm has completed 37 investments, contributing to over $2.5 billion in revenue for its portfolio companies since 2004.

The firm’s investment criteria are clearly defined, with a preference for equity investments ranging from $3 million to $100 million. CIC Partners typically targets companies with revenues between $10 million and $500 million and EBITDA between $3 million and $50 million.

This targeted approach allows CIC Partners to provide both the capital and operational expertise needed to drive growth and expansion within its portfolio companies.

CIC Partners also has a proven track record of successful exits. Notable transactions include the sale of CraftMark Bakery to One Equity Partners and the acquisition of Clearwater Engineering by Precision Aerospace Holdings, LLC. These deals underscore the firm’s ability to navigate complex transactions and generate value for both its investors and the companies it partners with.

The leadership team at CIC Partners features seasoned professionals such as Bayard Friedman, Managing Director, and Amir Yoffe, Partner. Together, the team comprises experienced executives and entrepreneurs who bring valuable industry insights and senior-level relationships, further enhancing the firm’s capacity to support its portfolio companies.

5. Pharos Capital Group

Pharos Capital Group, founded in 1998, is a unique private equity firm with dual headquarters in Dallas, Texas, and Nashville, Tennessee. What sets Pharos apart is its physician-founded roots, which deeply influence its investment strategy and mission.

The firm is dedicated to investing in growing healthcare companies that aim to improve patient outcomes, increase access to care, and lower the cost of healthcare, particularly in underserved rural and urban communities.

Pharos Capital Group focuses on lower and middle market companies, primarily within the healthcare and business services sectors. The firm pursues control equity and mezzanine investments, targeting areas such as provider services and non-reimbursement industries within healthcare. Notable portfolio companies include:

• Seaside Healthcare, specializing in mental health treatment services
• IASIS Healthcare, operating acute care hospitals
• Medfinders (formerly Nursefinders), a healthcare staffing company

The firm’s investment approach typically involves committing $25 to $50 million in capital to rapidly growing middle market companies. These investments are often used for internal growth, acquisitions, leveraged buyouts, management buyouts, or recapitalizations.

Since its inception, Pharos has invested in 57 companies and currently manages over $1.1 billion in assets, as of March 2022.

Pharos Capital Group is led by a seasoned team, including CEO and Chief Investment Officer Kneeland Youngblood. The firm’s leadership is characterized by a strong commitment to its mission and a deep understanding of the healthcare sector, which is essential for identifying and supporting innovative healthcare companies.

In addition to its investment activities, Pharos Capital Group has been at the forefront of streamlining compliance processes. The firm has implemented solutions like Ontra’s Insight to centralize and manage side letters and other investor obligations, significantly reducing the time and labor required for compliance tasks.

This efficiency has allowed Pharos to focus more on its core mission of investing in and growing impactful healthcare companies.

6. Kainos Capital

Kainos Capital, founded in 2012 and based in Dallas, Texas, is a middle-market private equity firm specializing in investments within the U.S. non-discretionary food and consumer products and services sectors. The firm was established by Andrew Rosen, Robert Sperry, and Sarah Ashmore Bradley, who spun it out from HM Capital Partners.

Kainos Capital is renowned for its “Change Capital” approach, which is designed to transform and grow businesses through sector specialization, extensive industry relationships, and dedicated operational resources. This hands-on strategy allows the firm to identify and unlock significant growth opportunities, particularly in family and founder-owned businesses.

By leveraging their deep industry knowledge and customer relationships, Kainos Capital helps its portfolio companies achieve accelerated and strategic growth.

The firm’s portfolio is diverse and includes notable investments. For example, Product Quest Manufacturing, LLC, a contract and private label manufacturer of OTC topical personal care products, was a significant investment during Kainos’ ownership. Another example is Specialty Sales, LLC, which manufactures and installs automated hoof bath and fly spray systems for dairy farms. Additionally, Trilliant Food and Nutrition stands out as a manufacturer of high-quality specialty coffees and beverages.

Kainos has also invested in Whisps, a popular better-for-you cheese snack brand, showcasing its focus on innovative consumer products.

Kainos Capital has demonstrated its ability to raise substantial capital for its investment activities. The firm has closed several funds, including its largest flagship vehicle, which raised $1 billion. This fundraising success highlights the confidence investors have in Kainos Capital’s investment strategy and its ability to deliver strong results for its portfolio companies and partners.

The firm’s leadership team is composed of experienced professionals who bring a wealth of industry expertise. Recent hires, such as Kim Homa and Robin Olsson, have further strengthened the firm’s operational capabilities and industry relationships, positioning Kainos Capital for continued success in the food and consumer products sectors.

7. Red River Equity Partners

Red River Equity Partners, headquartered in Dallas, Texas, is a private investment firm specializing in acquiring controlling positions in middle-market companies across various industries. The firm’s approach is rooted in a long-term perspective, focusing on implementing meaningful business strategies that align with both short- and long-term objectives.

At the core of Red River Equity Partners’ strategy is a strong emphasis on partnership and collaboration. The firm works closely with management teams to build sustainable value in businesses. This collaborative approach is deeply grounded in trust, business ethics, and integrity—values considered to be the firm’s most valuable assets.

By aligning incentives with management teams, Red River Equity Partners motivates leaders to drive growth while mitigating downside risks through focused corporate strategies.

The firm’s investment philosophy emphasizes the fundamentals of operating businesses, often prioritizing the implementation of simplistic yet effective operating controls. This meticulous approach helps create long-term value and ensures that the businesses they invest in are positioned for sustainable growth. Over the years, Red River Equity Partners has successfully invested in and advised more than 35 middle-market companies, showcasing its commitment to long-term value creation.

While based in the Dallas area, the firm’s primary office is located at 9755 Lake Trails in Celina, Texas. This location serves as the main worksite for its operations, including activities involving foreign workers.

The leadership and investment team at Red River Equity Partners bring extensive experience and industry expertise to the table. Their ability to identify and execute strategic initiatives has been instrumental in the firm’s success. Red River Equity Partners remains a significant player in the Dallas private equity landscape, recognized for its disciplined and partnership-driven investment approach.

8. Align Capital Partners

Align Capital Partners (ACP) is a growth-oriented private equity firm with a strong presence in Dallas, Texas, and Cleveland, Ohio. Founded with the mission of partnering with business owners and management teams to create shared success, ACP manages approximately $1.8 billion in committed capital.

ACP specializes in making control investments in lower-middle market companies across North America. The firm’s investment criteria are clearly defined, focusing on companies with EBITDA ranging from $3 million to $15 million, or annual recurring revenue (ARR) of more than $5 million for software companies.

The typical investment size ranges from $20 million to $60 million, with an enterprise value of up to $150 million.

ACP has a dedicated focus on several key sectors, including software and tech-enabled services, professional business services, industrial services, and specialty manufacturing and distribution. This sector-specific approach allows ACP to leverage its deep industry expertise and operational resources to drive significant growth in its portfolio companies.

The firm’s investment process is highly meticulous, with a strong emphasis on identifying companies that meet specific core attributes. These include a proven business model, a capable management team, a defensible market position, and substantial growth potential. By adhering to these criteria, ACP ensures partnerships with companies that have a solid foundation for long-term success.

ACP’s leadership and investment team consists of experienced professionals with a proven track record of evaluating and collaborating with differentiated companies. The firm’s collaborative approach involves working closely with management teams to implement strategies that drive growth and create value. This partnership-driven model has been instrumental in ACP’s success and its ability to help portfolio companies achieve new milestones.

Conclusion

In conclusion, the private equity landscape in Dallas, Texas, is both vibrant and diverse. Leading firms such as Lone Star Funds, Highland Capital Management, Trive Capital, CIC Partners, Pharos Capital Group, Kainos Capital, Red River Equity Partners, and Align Capital Partners are paving the way in this dynamic market.

These firms specialize in a range of sectors, including healthcare, financial services, and middle-market companies. They are renowned for their strategic investment approaches and their commitment to fostering long-term value creation. Whether you are an entrepreneur seeking capital, an investor scouting for opportunities, or a business professional interested in the private equity sector, gaining an understanding of these top firms can unlock valuable insights and potential partnerships.

Take the next step by connecting with these firms through platforms like Axial or Flippa. These platforms can help you explore how these private equity leaders can support your business in achieving growth and success.