David Rex

David Rex is Managing Director and General Counsel of Prophet Equity, where he is responsible for the management of all legal matters relating to the firm's fund operations and its portfolio investments. Prophet Equity, founded in 2007 and based in Southlake, Texas, is a private equity firm that acquires controlling positions in underperforming lower-middle-market companies and applies a proprietary "Holistic Value Creation™" operating approach to drive turnarounds and growth.

Before joining Prophet Equity, Rex was a partner at the Texas law firm Jackson Walker, where he concentrated on mergers, acquisitions, divestitures, and related financings — including serving as counsel to private equity and venture capital funds. His practice also involved advising entrepreneurs and emerging growth companies from formation through exit, with emphasis on venture capital, corporate finance, strategic alliances, and joint ventures. Earlier in his career he served as in-house counsel for two merchant banking groups, giving him a broad grounding in domestic and international corporate, securities, finance, banking, and tax law. Over the course of his career he has completed more than 340 transactions representing approximately $10.4 billion in aggregate transaction value.

Rex holds a B.B.A. in Accounting and a J.D. from the University of Oklahoma, and an LL.M. in Taxation from the University of Miami School of Law. He is also a Certified Public Accountant and an Eagle Scout. His recognitions include an AV Preeminent (5.0/5.0) peer-review rating from Martindale-Hubbell, selection as a Texas Super Lawyer by Thomson Reuters, and the 2015 Magna Stella Award for Solo General Counsel from The General Counsel Forum. He has served as Chairman of both the Mergers & Acquisitions and Venture Capital committees of the State Bar of Texas, and previously sat on the board of BioDFW (now the Health Industry Council of North Texas).

• Rex's role is that of General Counsel and legal/transaction leader, not a check-writing angel or seed investor — founders should understand he supports Prophet Equity's fund, not personal angel deals.
• Prophet Equity targets strategically viable but underperforming lower-middle-market companies with strong underlying fundamentals and meaningful upside.
• The firm takes controlling equity positions, typically investing $5M–$50M per transaction in companies with revenue up to roughly $500M.
• Deal types include special situations, succession planning, recapitalizations, reorganizations, turnarounds, acquisitions, corporate carve-outs, divestitures, and bankruptcies.
• The firm emphasizes a data-driven, operationally intensive "Holistic Value Creation™" playbook described as "Fortune 500 tested and private equity proven."