LongWater, a private markets investment firm focused exclusively on the lower middle market, today announced the final closing of its inaugural SBIC fund (the “Fund”). The Fund exceeded its target of $262,500,000, inclusive of private capital commitments and leverage provided through the U.S. Small Business Administration’s (“SBA”) Small Business Investment Company (“SBIC”) program.
The Fund is the first SBIC fund within LongWater’s Capital Solutions platform, targeting direct private credit and non-control equity investments in lower middle market companies throughout the United States. The Fund focuses on partnering with private equity sponsors and management teams, providing flexible capital solutions to U.S. based businesses with strong fundamentals and meaningful growth potential, underserved by traditional capital sources.
The Fund received commitments from a diversified group of investors, including publicly traded and privately held banks, family offices, insurance companies, institutional investors and high-net-worth individuals, reflecting strong confidence in LongWater’s Capital Solutions team and its disciplined, relationship driven approach to lower middle market investing. Of this investor group, approximately 40% were first time investors into the SBIC Program. As a licensed SBIC, the Fund benefits from SBA-provided leverage, meaningfully enhancing its capacity to support small businesses across the country.
“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
The Fund is led by Kevin Prunty, Senior Managing Director, alongside Managing Directors Trevor Gibson, Nick Careklas, Ben Dinehart and Sam Panke. The Capital Solutions team is based in St. Louis, Missouri and collectively brings decades of experience deploying capital in the lower middle market. The team has a long track record of sourcing transactions through deep sponsor relationships and executing with the speed and certainty that lower middle market businesses require. To date, the Fund has invested capital in support of eight companies across the United States.
About LongWater
LongWater is a private markets investment firm and a premier access point to the lower middle market. Founded in 2009 and headquartered across three Midwest offices in Fargo, ND, Dallas, TX and St. Louis, MO, LongWater operates two distinct platforms: LongWater Private Equity and LongWater Capital Solutions. With approximately $1B in regulatory assets under management and 220+ investors, the firm provides institutional-grade access to compelling lower middle market opportunities across multiple private market asset classes. For more information, visit www.longwateropportunities.com.
About the SBIC Program
The Small Business Investment Company (SBIC) program is a public-private partnership licensed and regulated by the U.S. Small Business Administration. SBICs use a combination of private capital and government-backed debentures to provide equity capital, long-term loans and management assistance as necessary to eligible small businesses in the United States. The program is designed to channel private investment capital to small businesses across the United States that may otherwise have limited access to growth financing.
This material is confidential and is intended solely for the use of the recipient. It does not constitute an offer to sell or a solicitation of an offer to buy any security. Any offer or solicitation will be made only through a definitive private placement memorandum and related subscription documents, which describe the risks, fees and expenses associated with an investment.
These materials have not been approved or reviewed by the U.S. Securities and Exchange Commission or any state securities regulator.
This material contains forward-looking statements based on current expectations and assumptions. Forward-looking statements involve risks and uncertainties, and actual results may differ materially from those expressed or implied. LongWater undertakes no obligation to update or revise any forward-looking statements.
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