SBIC Funds List 2026: 20 SBICs Backing Lower Middle Market Buyouts
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Top 20 SBIC Funds Financing Acquisitions
Small Business Investment Companies, or SBICs, are privately managed funds licensed by the US Small Business Administration that combine private capital with SBA-guaranteed leverage. Many of them specialise in exactly what independent sponsors and lower middle market buyers need, which is subordinated debt and minority equity to complete an acquisition.
This guide lists 20 of the largest SBIC fund managers active in buyouts, mezzanine and hybrid debt and equity, explains how SBIC capital fits into an acquisition, and sets out what these funds expect to see before they invest.
In this article
What an SBIC is
An SBIC raises capital from private investors and, once licensed, can add SBA-guaranteed debentures on top, giving it more capital to invest than its private commitments alone. In return, it must invest in US businesses that meet SBA size standards.
The programme is growing quickly. The SBA reported that the SBIC programme reached a record $53 billion in total capital in fiscal year 2025, up from $46 billion the year before, and approved 48 new licences expected to invest more than $14 billion, according to its November 2025 announcement.
Why SBIC capital suits acquisitions
Built for smaller companies
SBICs must invest in small businesses, so a company with a few million dollars of EBITDA is their core market rather than a stretch.
Fills the equity gap
Subordinated debt from an SBIC reduces the cash a buyer must put in at closing. See our guide to equity gap funding.
Flexible structures
Many SBICs combine subordinated notes with warrants or co-invest equity, tailoring the package to the deal.
Sponsor friendly
SBICs routinely back independent sponsors and first-time fund managers. Read our guide for independent sponsors.
Top 20 SBIC funds financing acquisitions
The list below ranks SBIC managers by the size of their largest recent SBIC fund, using fund data compiled by Dakota for the Midwest, the South and funds launched in 2025. Venture-focused SBICs are excluded, and each manager appears once.
| Rank and fund | Location | Strategy | Fund size |
|---|---|---|---|
| 1. Valesco Fund III (Valesco Industries) | Dallas, TX | Hybrid debt and equity | $397m |
| 2. Kian Growth Partners III (Kian Capital) | Charlotte, NC | Buyout | $388m |
| 3. Five Points Credit SBIC IV (Five Points Capital) | Winston-Salem, NC | Mezzanine | $353m |
| 4. GMB Mezzanine Capital V (GMB Capital Partners) | Minneapolis, MN | Mezzanine | $334m |
| 5. CCP V-SBIC (Centerfield Capital Partners) | Indianapolis, IN | Mezzanine | $305m |
| 6. Eagle Fund VI-A (Eagle Private Capital) | St. Louis, MO | Mezzanine | $299m |
| 7. Stonehenge Opportunity Fund V (Stonehenge Partners) | Columbus, OH | Hybrid debt and equity | $285m |
| 8. Rochefort Ventures (Rochefort Management) | West Palm Beach, FL | Direct lending | $278m |
| 9. Plexus Fund VII-A (Plexus Capital) | Raleigh, NC | Hybrid debt and equity | $277m |
| 10. LongueVue Capital Partners IV (LongueVue) | Metairie, LA | Hybrid debt and equity | $273m |
| 11. LongWater SBIC Fund I (LongWater Opportunities) | Fargo, ND | Hybrid debt and equity | $263m |
| 12. Midwest Growth Partners IV | West Des Moines, IA | Multiple strategies | $250m |
| 13. SharpVue Capital Credit Fund III (SharpVue) | Raleigh, NC | Mezzanine | $243m |
| 14. Invision Capital III-A (Invision) | Chicago, IL | Mezzanine | $242m |
| 15. AAVIN Capital III (AAVIN Private Equity) | Cedar Rapids, IA | Buyout | $242m |
| 16. Southfield Mezzanine Capital III (Southfield Capital) | Greenwich, CT | Mezzanine | $242m |
| 17. New Canaan Funding Mezzanine VII SBIC | Naples, FL | Mezzanine | $241m |
| 18. Tecum Capital Partners IV (Tecum Capital) | Wexford, PA | Mezzanine and hybrid | $235m |
| 19. Balance Point Capital Partners VII (Balance Point Capital) | Westport, CT | Mezzanine | $226m |
| 20. Holleway IPA Fund II (Holleway Capital Partners) | St. Louis, MO | Buyout | $154m |
Several managers run more than one SBIC fund, including Five Points Capital, Centerfield and Eagle Private Capital, so their total SBIC capital is larger than the single fund shown. Listed business development companies also operate SBIC subsidiaries, and Capital Southwest, for example, announced its second SBIC licence.
Where SBIC capital sits in the capital stack
In a typical lower middle market buyout, a bank or direct lender provides senior debt, the seller may carry a note, and the buyer contributes equity. An SBIC usually fills the layer between senior debt and equity, with subordinated debt that often carries warrants or a small equity co-investment.
| Layer | Typical providers |
|---|---|
| Senior debt | Banks, SBA lenders and direct lenders |
| Subordinated debt | SBIC mezzanine funds and other junior lenders |
| Seller financing | The seller, through a deferred note or earnout |
| Equity | The buyer, co-investors and SBIC equity funds |
For the trade-offs between these layers, see our comparison of unitranche, senior debt and mezzanine and our list of mezzanine capital providers for buyouts.
What SBIC funds look for
Established, profitable targets. Most SBIC mezzanine and buyout funds invest in companies with a track record of positive EBITDA and stable cash flow, not start-ups or turnarounds.
Committed sponsors. Funds want to see the buyer's own equity at risk and a credible plan to run the business after closing.
A senior lender in place or in sight. Subordinated capital is sized around the senior debt, so SBICs want to know who is providing it and on what terms.
A professional information package. A clear investment memo, quality of earnings view, financial model and sources and uses table. Our Lender-Ready Package builds exactly this file at a fixed fee, and our guide on acquiring a $1 million EBITDA business shows how a typical stack comes together.
Raising subordinated capital for an acquisition?
Financely structures the capital stack, prepares the investment package and introduces your deal to SBIC, mezzanine and senior lenders that fit its size and sector. Tell us about the target and we will send a written quote with scope, fee and timeline.
Frequently asked questions
What is an SBIC fund?
A privately managed investment fund licensed by the US Small Business Administration that can add SBA-guaranteed leverage to its private capital and must invest in US small businesses.
Do SBIC funds finance business acquisitions?
Yes. Many SBICs specialise in subordinated debt, hybrid debt and equity, or buyout equity for acquisitions of lower middle market companies, often alongside independent sponsors.
Is SBIC financing the same as an SBA loan?
No. SBA loans are made by banks to businesses under SBA guarantee programmes. SBICs are investment funds that use SBA-guaranteed leverage to make their own debt and equity investments.
Where can I find a full SBIC directory?
The SBA publishes a directory of licensed SBICs. This list focuses on larger managers active in acquisition financing, based on published fund data.
This article is general information only and is not legal, tax or investment advice. Fund data is taken from the third-party sources linked and may be incomplete or out of date. Inclusion does not imply endorsement or any relationship with Financely. Financely is an advisory and arranging firm, not a lender, investment fund or broker-dealer. Any financing is subject to investor and lender underwriting, due diligence, approval, documentation and conditions precedent. No outcome or timeline is guaranteed.
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