Crux Capital expands investment team after ‘killer year,’ adding consumer and services expertise » Dallas innovates

Kale Kolbe (left) joins Crux Capital as a senior associate, and Christopher Herrod is an analyst at the firm. (Photo: Crux Capital)

Dallas-based private equity firm Crux Capital has bolstered its team with two new hires – Kale Kolbe as a senior associate and Christopher Herrod as an analyst – in moves that expand the firm’s capabilities in areas where it focuses on consumer and commercial services.

The team’s expansion comes after what Wayne Moore, managing partner of Crux Capital, described as a “killer year.” In a June interview with Mergers & Acquisitions, Moore said that in 2023, the company completed “two additions, raised a restaurant holding company fund and completed a platform acquisition.”

Kolbe joins Crux Capital from Kainos Capital, where he specialized in the food and consumer products sector as a partner. His experience includes working with management teams on growth initiatives and evaluating companies involved in manufacturing, distribution and branded consumer products.

“Kale’s addition to our team strengthens our operational expertise in the consumer sector,” Moore said in a statement. “His track record of implementing value-added initiatives will be invaluable as we work to accelerate the growth of our portfolio companies.” Prior to his role at Kainos, Kolbe will evaluate, execute and monitor investment opportunities at Crux, working with portfolio companies to create long-term value.

Originally from Cowen, where he worked on buy-side and sell-side transactions in the services sector, Herrod will support Crux Capital in identifying and evaluating investment opportunities, conducting due diligence and helping portfolio companies execute on their growth strategies.

“Christopher’s experience at Cowen gives him strong transactional experience in the services space, which fits perfectly into one of Crux’s areas of focus,” said James Kay, director of Crux Capital. “We are confident that he will be a key contributor to expanding our investment pipeline.”

Active and completed investments in growing companies

Crux Capital specializes in investing in and growing consumer and services companies, focusing on high-quality businesses where it can work closely with management to build long-term value. Four of Crux’s five platform companies were founded in Texas, and the company moved its fifth platform, Buff City Soap, from Memphis to Dallas.

HTeaO: In December 2022, Crux invested in this franchisor specializing in ultra-premium tea products. HTeaO offers 24 flavors of sweetened and unsweetened iced teas and plans to expand to 500 locations by 2026.
Superscapes: In January 2020, Crux added this commercial landscape architecture service provider to its portfolio. Operating throughout Texas and Arkansas, Superscapes serves high-profile owners and developers. Her work on the 1,000-acre Cypress Waters development in Dallas recently gained industry recognition for tackling water rationing and soil management challenges.
Woody’s brands: In May 2022, Crux invested in Woody’s, a multi-unit operator of bar and restaurant concepts in Texas and Louisiana. Woody’s operates two brands: Little Woodrow’s, a neighborhood bar and biergarten, and Fast Eddie’s, a classic pool hall.
Unusual brands: Crux’s last investment was in December 2023, and the company backed Uncommon Brands, a holding company established to invest in and scale restaurant brands. The first collaboration is with Fuego Tortilla Grill, a Tex-Mex concept, with plans to add more limited-service restaurant brands.

Crux Capital also has a track record of successful investments. In November 2019, the company invested in Buff City Soap, a franchisor offering handcrafted, plant-based personal care products. Crux partially exited the business in May 2021 and May 2022 by selling its shares to General Atlantic. Buff City Soap is constantly developing, recently expanding its offer to include liquid soap.

Crux Capital identified Dallas as the optimal base for growth

Moore, a hedge fund veteran, founded Crux Capital in Dallas about six years ago. The decision was made based on data after Moore hired an analytics firm to conduct a detailed analysis of the 100 largest U.S. markets. According to M&A, ultimately the combination of Dallas’ population growth, vibrant business environment and strategic location in the heart of Texas made it the obvious choice.

Moore emphasized that this decision wasn’t just about immediate benefits; it was about positioning Crux Capital for sustainable, long-term growth in an increasingly competitive private equity landscape. “Dallas was the best place in the country to open a private equity firm,” Moore told the publication.