A new Small Business Investment Company fund recently held its final closing at $69m.
Valesco Commerce Street Capital, LP, which was formed to raise capital for a private investment fund under the Small Business Investment Company program of the U.S. Small Business Administration (SBA) will focus on providing long-term subordinated debt and equity capital to growth-oriented small- and lower-middle-market businesses located primarily in the South Central U.S.
Fifty-three community banks across the states of Texas, Arkansas, Oklahoma, Louisiana and New Mexico provided 75% of the capital while a number of institutions, high-net-worth individuals and family offices contributed the balance.
The fund was created by two Dallas-based firms, Valesco Industries and Commerce Street Capital.
Valesco Industries focuses on making control and non-control investments in select growth-oriented small- and lower- middle-market businesses engaged in manufacturing, distribution and business-to-business services. Managing directors Bud Moore and Jack Sadden were joined by Patrick Hamner, a former chairman of the National Association of SBICs.
Commerce Street Capital is a private investment banking firm which specializes in investment banking services (mergers and acquisitions, valuations and regulatory issue advising) and bank development (on-site consulting and management of capital raising, market assessments, application development, Board of Director placement).