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Fidelity Capital Technology
Mark Schretter founded Fidelity Capital Technology in 2003 to make permanent capital investments in enterprise software and healthcare IT firms.
Fidelity Capital Technology
Fidelity Capital Technology was founded in 2003 by Mark Schretter to invest proceeds from the sale of a family-run manufacturing business. The firm was structured deliberately as a permanent capital base, avoiding the constraints of a traditional private equity fund structure. Public records indicate a lean team operating from New York, focused on acquiring controlling stakes in established, profitable technology companies. The firm targets lower-middle-market enterprise software, cybersecurity, healthcare IT, and financial technology businesses. It seeks companies with $2M–$10M in EBITDA, strong recurring revenue, and defensible market positions. Unlike a venture firm, Fidelity Capital Technology acquires mature, cash-flowing entities with established customer bases. The firm's capital base allows it to hold investments indefinitely, prioritizing long-term value compounding over a predefined exit timeline. Confirmed past investments include Red Oak Compliance Solutions, a governance and compliance software provider for the financial services industry. Fidelity Capital Technology operates with a small, concentrated team. While total deployment figures are undisclosed, the firm's strategy suggests a portfolio of fewer than a dozen active platform companies. In June 2024, the firm appointed a new CFO at its portfolio company Red Oak Compliance Solutions to support scaling operations (per the company, June 2024). The firm does not operate adjacent philanthropic foundations or co-investment clubs that have been publicly documented. The firm's structural differentiator is its indefinite hold period. By avoiding institutional limited partners, Fidelity Capital Technology can weather market cycles without forced divestitures and reinvest in portfolio companies at the operating level for decades. This permanent capital architecture mirrors the approach of a few other family-backed software acquirers but remains uncommon at the lower end of the middle market, where most competitors are fund-driven and exit-mandated.
General information
Firm type
Single Family Office
Year founded
2003
AUM
Undisclosed
Location
Region
North America
Country
United States
City
New York
Corporate office
New York, NY, United States
Principals
Mark Schretter
Managing Director
Sector focus
Frequently asked questions
Who runs investment decisions at Fidelity Capital Technology?
Mark Schretter, the firm's Managing Director, leads investment decisions. He founded the firm in 2003 after a family liquidity event. Public filings and past press releases name Schretter as the controlling decision-maker on acquisitions. The firm operates without a public-facing investment committee.
How does Fidelity Capital Technology source proprietary deal flow?
The firm relies on a proprietary network developed over two decades in the lower-middle market. It typically approaches founders directly and works through boutique investment banks rather than broad auctions. Schretter's long tenure and permanent capital structure are often cited by intermediaries as a differentiator with sellers.
Is Fidelity Capital Technology structured as a single family office or does it operate more like a private equity firm?
It is a single family office deploying a permanent capital base, not a blind-pool fund. The firm takes control equity positions but has no external limited partners demanding liquidity on a fixed schedule. This structure allows it to hold businesses indefinitely, which distinguishes it from traditional fund managers.
What investment size does Fidelity Capital Technology typically target?
The firm targets companies with $2 million to $10 million in EBITDA. It writes equity checks for control acquisitions, though it does not publicly disclose its exact enterprise-value ceiling. Its focus is on businesses that are profitable, bootstrapped, and seeking a capital partner for long-term growth rather than a short-term flip.
Does Fidelity Capital Technology co-invest alongside external GPs?
The firm has not publicly participated in GP-led co-investment programs. It typically acquires 100% of a target company. There is no record of Fidelity Capital Technology acting as a minority LP in external funds, consistent with its posture as a direct, control-oriented investor.
Where does the underlying wealth come from?
The wealth originates from the sale of a family-owned manufacturing business. Mark Schretter's family built and exited the business, and the proceeds formed the capital base for Fidelity Capital Technology. The specific identity of the manufacturing business has not been widely disclosed in the firm's public materials.
Which sectors does Fidelity Capital Technology explicitly avoid?
The firm does not invest in biotechnology, hardware, or early-stage pre-revenue startups. It targets enterprise software, cybersecurity, healthcare IT, and financial technology — sectors with recurring revenue models. Consumer internet and capital-intensive manufacturing are explicitly outside its mandate.
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