LongWater, a private markets investment firm focused exclusively on the lower middle market, announces 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.

Read full press release here.