Private equity firm RW Capital Partners, LLC, launched an effort to raise $50m of private capital with a new fund aimed at providing loans to small businesses.
RW Capital’s fund (the 1847 SBIC Mezzanine Fund, LP) could be matched by up to $100m in committed funds upon successful completion of its application to be licensed by the Small Business Administration as a Small Business Investment Company (SBIC).
The SBIC program was created in 1958 to bridge the gap between entrepreneurs’ needs for capital and traditional financing sources.
In 2009, SBIC financing of $1.8 billion benefited more than 1,400 companies.
The program invests long-term capital in privately owned and managed investment firms that must pass a rigorous qualification process.
RW Capital Partners recently received a letter from SBA to proceed to the next step in the SBIC licensing process, based on the principals’ level of experience, strong evidence of deal flow and an established track record of superior returns.
This interim step allows RW to attract private investors whose capital may be matched by a ratio of up to two-to-one by the SBA upon completion of licensing.
In qualifying RW Capital to proceed in the SBIC licensing process, the SBA recognized the principals’ 30 years of combined experience in private equity investing and commercial lending.
Ellery W. Roberts and Michael W. Wingard have managed a combined $4bn in investments across a broad range of industries, including business services, technology services and hardware, consumer products, industrial manufacturing, food, forest products and retail.