# Route 2 Capital Partners

Route 2 Capital Partners is a Private Equity based in Mount Pleasant, United States.

## Overview

- **Organization type:** Private Equity
- **Headquarters:** Mount Pleasant, United States
- **Region:** North America
- **Address:** 534 Johnnie Dodds Boulevard, Suite 102, Mount Pleasant, SC, United States
- **Founded:** 2016
- **Assets under management:** Undisclosed
- **Website:** www.route2capital.com
- **LinkedIn:** https://www.linkedin.com/company/route-2-capital

## Regulatory record

- **Reports private funds:** No

## About

Route 2 Capital Partners is a private investment firm based in the southern United States. It provides mezzanine and equity capital solutions ranging from $3 million to $15 million to lower middle market companies. The firm has made 25 investments, including a January 2023 investment in Palmetto Adhesives Company.

## Sectors

- Enterprise Software
- Aerospace & Defense
- Industrial Tech
- Business Services
- Healthcare Services
- Consumer
- Media & Entertainment
- Real Estate

## Offices

- Greenville, SC, United States

## People

- Scott Kester — Managing Partner
- Jay White — Managing Partner
- Spalding White — Managing Partner

## Questions

### How does Route 2 Capital Partners structure its investments?

Route 2 exclusively uses subordinated debt coupled with an equity component for every transaction. The firm does not offer senior debt or pure equity buyouts. By attaching an equity kicker to each loan, Route 2 aligns its returns with the operating performance of the portfolio company rather than functioning as a passive lender. This hybrid structure is applied uniformly across buyouts, growth capital, and recapitalizations, making the firm’s risk-sharing posture a defining feature of its investment approach.

### Who runs investment decisions at Route 2 Capital Partners?

Investment decisions are made by the three managing partners: Scott Kester, Jay White, and Spalding White. Each partner brings distinct expertise — Kester from operational finance and controllership at Sherman Financial Group, Jay White from mezzanine and structured equity origination at Prudential Financial, and Spalding White from running a dedicated SBIC mezzanine fund at Salem Halifax Capital Partners. The firm’s deal team also includes a vice president and associates who handle sourcing and execution, but ultimate authority rests with the three co-founders.

### Which sectors does Route 2 Capital Partners explicitly avoid?

The firm does not publish a formal exclusions list, but its portfolio reveals no exposure to early-stage biotechnology, pure-play software startups with recurring operating losses, or natural resource extraction. Route 2 targets established, cash-flow-positive companies in manufacturing, business services, IT services, aerospace, and consumer products — sectors where tangible assets or recurring revenue streams support the subordinated debt structure the firm requires.

### How does Route 2 source its proprietary deal flow?

Route 2’s deal flow originates from three distinct channels: private equity firms seeking junior capital for their portfolio companies, independent sponsors who need a financial partner to close a transaction, and direct outreach to management teams pursuing buyouts or growth capital. The partners' decades in southeastern credit markets — including Jay White’s tenure at Prudential and Spalding White’s network within the Small Business Investor Alliance — provide recurring access to transactions that don't surface in broad auctions.

## Related profiles

- [Roustan Capital](https://altss.com/profile/roustan-capital)
- [Route 66 Ventures](https://altss.com/profile/route-66-ventures)

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Last updated: 2026-06-03T20:00:00.000Z

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