Prophet Equity Management LLC

Prophet Equity Management LLC, established in 2008, is a financial advisor firm based in Southlake, Texas. Specializing in providing investment advisory services to Prophet Equity LP and related investment vehicles, the firm focuses on acquiring controlling equity positions in underperforming lower-middle-market companies. The firm's investment strategy involves sourcing transactions through a network of professionals, creatively structuring deals, and implementing operating improvements to enhance cash generation and profitability. Prophet Equity Management LLC manages assets on a discretionary basis, with assets totaling $69,541,483 as of March 30, 2025. The firm charges a management fee based on total capital commitments, which was reduced to 0.5% for the 12 months ending December 12, 2021. Additionally, the General Partner is eligible to receive performance allocations based on profits from portfolio company dispositions. Clients of the firm primarily include insurance companies, retirement plans, fund of funds, business entities, trusts, estates, and high-net-worth individuals. Investors are required to be accredited investors and qualified purchasers, with a typical minimum investment of $5 million. Prophet Equity Management LLC's investment strategy involves investing in equity and equity-related securities of underperforming, asset-intensive companies in the lower- and middle-market segment. The firm emphasizes sustainable competitive advantages and implements hands-on management tools to drive value creation. Clients are advised of the risks associated with investments, including market fluctuations, leverage, and potential loss of capital. The firm operates under a code of ethics, prohibits insider trading, and maintains discretion over managing client assets in accordance with stated investment objectives. Clients receive quarterly unaudited and annual audited financial statements for transparency. Prophet Equity Management LLC does not compensate brokers for client referrals and holds clients' funds and securities without using a qualified custodian.