Leeds Novamark closes SBIC fund at $236 mln

Firm: Leeds Novamark Management LLC

Fund: Leeds Novamark Capital I LP

Target: $225 million

Amount Raised: $236 million

Structured as a small business investment company, or SBIC, Leeds Novamark Capital I LP focuses on lower mid-market companies, typically investing $5 million to $20 million per transaction in the form of unitranche senior debt, subordinated debt or equity. The firm targets high-quality businesses with EBITDA of at least $2 million.

Because an SBIC can leverage its equity with two turns of debt financing from the U.S. Small Business Administration, its $236 million of capital indicates $78 million of capital raised. The firm said its limited partners include both individual and institutional investors, regional and national banks, endowments and family offices. Leeds Novamark also has backing from Leeds Equity Partners, a buyout firm with a focus on education.

Leeds Novamark did not respond to a request for comment.

Leeds Novamark, whose website lists 32 investments, is a generalist firm that has significant investment experience in business services including insurance, information, software, software-as-a-service, healthcare and corporate training. Other areas of interest include niche manufacturing, value added distribution and consumer products.

The fund’s managing partners, Robert Monk, Mark Raterman and Matt Kelty, have invested approximately $1.3 billion in 40 transactions over the last 20 years and hold board seats on all of their portfolio companies, the firm said.