Teamshares secures $225 million investment for SME acquisitions

Teamshares, a New York-based technology-enabled acquirer of small and midsize enterprises (SMEs), has secured a $225 million preferred equity investment. The funding comes from accounts advised by T. Rowe Price Investment Management, Inc.

The investment is structured as Series A perpetual, non-voting, and non-convertible preferred stock. This structure is designed to be non-dilutive to common stock ownership. The agreement also includes the provision for Teamshares to issue up to an additional $75 million in preferred equity to other institutional investors, which could bring the total financing to $300 million.

Teamshares intends to use the proceeds to fund its programmatic acquisition strategy, specifically targeting established businesses with annual EBITDA between $500,000 and $5 million. The capital is expected to support the company’s acquisition growth targets for 2026 and 2027. The company plans to combine these funds with senior acquisition debt and seller notes to optimize its cost of capital.