Firm: Levine Leichtman Capital Partners
Fund: Levine Leichtman Capital Partners SBIC Fund LP
Target: $75 million
Placement Agent: None
The Los Angeles-based firm has raised $69.45 million for the fund,
Levine Leichtman joins a growing list of firms of all sizes turning to SBIC funds as a fast, flexible source of capital at a time when raising new, traditional buyout funds is a challenge and debt financing is pricey. Other firms recently raising SBIC funds include
Levine Leichtman, founded in 1984, manages $5 billion of committed capital. The firm invests across a variety of sectors in the mid-market and is currently investing from
Under the SBIC arrangement, firms can raise as much as $75 million and borrow up to $150 million more, ultimatley financing its portfolio from the SBIC Funding Corp., an arm of the U.S. Small Business Administration, at a rate tied to 10-year Treasury bonds. The funds typically max out at $225 million.
The U.S. Small Business Administration reported in October 2010 that it had issued 21 SBIC licenses in fiscal 2010, ended Sept. 30, more than double the 10 licenses a year that the agency had averaged over the preceding four years. Total SBA financings through the SBIC debenture program grew to $1.59 billion, a record, up 23 percent from the average of the prior four years.
Executives at Levine Leichtman did not reply to requests for comment.