Hybrid capital: debt plus equity strategy

Episode Overview:

In this episode, Alex Rawlings speaks with Richard Fitzgerald of CapitalSpring, a private equity firm specializing in foodservice and multi-location consumer businesses. Richard shares insights into CapitalSpring’s differentiated, sector-focused approach, how they’ve scaled over 20 years, and the recent $1B+ exit to Bain Capital. He also unpacks their latest fundraising success in a tough market and the importance of specialization in today's crowded PE landscape.

Timestamps & Key Topics:

00:00 – Introduction
Overview of CapitalSpring’s focus and two key topics: fundraising success and a $1B+ exit.

00:54 – Richard’s Background
From investment banking to founding CapitalSpring in 2005 with a sector-specialist mindset.

03:19 – Why Multi-Location Businesses?
Opportunities found on Main Street—resilient, everyday consumer services often overlooked in PE.

04:43 – Starting Small, Scaling Big
CapitalSpring began with $3M; now 300 investments and $4B deployed across 100+ brands.

06:30 – Specialization as a Differentiator
Why generalist firms struggle, and how deep focus wins deals without being the highest bidder.

08:55 – $1B+ Exit: Sizzling Platter to Bain Capital
Growth from 400 to 800+ locations across multiple brands and markets, despite COVID headwinds.

14:03 – Key Learning: Labor-Light Models
Pandemic emphasized the value of operational efficiency and low labor reliance in QSR investments.

15:27 – Fund VII: First Close Success
How CapitalSpring raised in a tough market by showcasing portfolio resilience and a hybrid debt/equity model.

17:44 – Hybrid Capital Strategy
Flexibility to invest via debt, equity, or both—offering solutions to founders and mitigating risk for LPs.

20:04 – Book Recommendation: Give and Take by Adam Grant
The power of relationships in PE—not just financial modeling.

21:57 – Connect with Richard
Email: rfitzgerald@capitalspring.com
| LinkedIn & website via CapitalSpring.

Top Takeaways:

• Specialization is key in today’s competitive PE environment.
• Hybrid investing (debt + equity) offers flexibility and downside protection.
• Operationally light, multi-unit businesses prove resilient—even in crises.
• Long-term success in PE depends on relationships, not just technical skills.

Raw Selection partners with Private Equity firms and their portfolio companies to secure exceptional executive talent. We focus on de-risking executive recruitment through meticulous search and selection processes, ensuring top-tier performance and long-term success.

🔗 Connect with Alex Rawlings on LinkedIn: https://www.linkedin.com/in/alexrawlings/

🌐 Visit Raw Selection: www.raw-selection.com

Looking to grow your team? Check out our Hiring Guides

for proven strategies, templates, and best practices to make smarter hires.