LongWater announced the final closing of its inaugural Small Business Investment Company (SBIC) fund, surpassing its target of $262.5 million in total capital, including private capital commitments and leverage provided through the U.S. Small Business Administration’s SBIC program.
The fund represents the first SBIC vehicle within LongWater’s Capital Solutions platform and is focused on providing direct private credit and non-control equity investments to lower middle market businesses throughout the United States. The strategy targets partnerships with private equity sponsors and management teams, offering flexible financing solutions to companies with strong fundamentals and growth potential that may be underserved by traditional capital providers.
According to the firm, the fund attracted commitments from a diverse group of investors, including publicly traded and privately held banks, family offices, insurance companies, institutional investors, and high-net-worth individuals. Approximately 40% of the investor base represents first-time participants in the SBIC program.
As a licensed SBIC, the fund benefits from leverage provided by the U.S. Small Business Administration, expanding its capacity to provide financing and support to qualifying small businesses across the country.
The fund is led by Senior Managing Director Kevin Prunty and Managing Directors Trevor Gibson, Nick Careklas, Ben Dinehart, and Sam Panke. Based in St. Louis, the Capital Solutions team brings decades of lower middle market investing experience and has developed relationships with sponsors that help source investment opportunities and provide execution speed.
To date, the fund has deployed capital into eight companies across the United States.
Founded in 2009, LongWater operates through its Private Equity and Capital Solutions platforms and manages approximately $1 billion in regulatory assets under management. The firm serves more than 220 investors and maintains offices in Fargo, North Dakota, Dallas, Texas, and St. Louis, Missouri.
The SBIC program is a public-private partnership administered by the U.S. Small Business Administration that combines private capital with government-backed leverage to provide financing and management assistance to eligible small businesses in the United States.
KEY QUOTES:
“The final closing of the Fund marks an important milestone for our firm, our partners and for the lower middle market businesses we exist to serve. Building a first-time SBIC fund requires not only a compelling investment thesis but the trust of investors who believe in your team and your approach. We are humbled by the confidence our limited partners have placed in us and grateful to the SBA for their partnership throughout this process. This Fund embodies everything our Capital Solutions platform stands for: flexibility, speed and certainty for sponsors and portfolio companies that need a reliable capital partner who is relationship focused. We look forward to deploying this capital thoughtfully on behalf of our investors and creating meaningful value in support of the SBIC program.”
Kevin Prunty, Senior Managing Director, LongWater Capital Solutions
