Teamshares Closed $225 Million Equity Investment
The company secured preferred equity funding to accelerate its small business acquisition strategy.
Updated on Sept. 23, 2026 in Corporate Finance
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Teamshares successfully closed a $225 million Series A perpetual preferred equity investment advised by T. Rowe Price Investment Management. The firm plans to use the capital to fund acquisitions of small and medium enterprises.
Why it matters
The financing provides Teamshares with the liquidity needed to acquire businesses while maintaining current common stock ownership structures. By using preferred equity rather than dilutive common stock, the company aims to preserve capital flexibility.
The investment carries a 16.0% annual cash dividend rate, which may decrease to 14.5% if specific EBITDA and deleveraging benchmarks are achieved. The deal includes a 1% original issue discount and follows a reported consolidated revenue of over $500 million as of June 30, 2026.
The players
Teamshares
A financial firm based in New York that specializes in acquiring small and medium enterprises.
T. Rowe Price Investment Management
A global asset management firm that advised the accounts participating in the preferred equity investment.
Goldman Sachs
A multinational investment bank that acted as the exclusive financial advisor for the transaction.
The details
Goldman Sachs served as the exclusive financial advisor for the transaction, which is structured as non-voting, non-convertible preferred stock. The company plans to deploy these funds to refinance existing debt and improve its overall cash flow profile.
Timeline
Teamshares announced the $225 million investment on September 23, 2026.
The firm reported consolidated revenue exceeding $500 million on June 30, 2026.
Investors may require redemption of the preferred stock starting on the seventh anniversary of the issuance.
Market Landscape
This transaction follows the broader industry trend of utilizing preferred equity to fund aggressive acquisition growth without triggering shareholder dilution. It positions Teamshares to continue scaling its footprint in the small business sector against other private equity-backed consolidators.
This deal provides the financial backing for Teamshares to continue its acquisition activity in the small business market. Customers of businesses acquired by the firm may see stability or changes in operations as the company integrates new assets into its portfolio.
The takeaway
Companies can sustain rapid acquisition growth while avoiding common stock dilution by tapping into preferred equity markets. Maintaining high dividend rates allows firms to attract institutional investors while retaining strategic control over their capital structures.
Further reading
For more information on market trends, visit the Corporate Finance section.
More information
View official financial disclosures on the Teamshares investor relations website.
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