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HCAP Partners Announces Final Close of New $353MM SBIC Fund

September 19, 2022, 07:00 AM
Filed Under: Private Equity News

HCAP Partners, a California-based private equity firm and nationally recognized impact investor, announced the final close of its second SBIC fund, HCAP Partners V, L.P. ("Fund"). The Fund was oversubscribed with total commitments of $353 million including anticipated leverage from the SBA, exceeding the initial fundraising target by over forty percent. Operating as a U.S. Small Business Administration SBIC (Small Business Investment Company), the Fund will continue the firm's strategy of investing in underserved businesses in the lower middle market and implementing the Gainful Jobs Approach™, its platform designed to measure and improve job quality standards across its portfolio.

More than twice the size of its predecessor fund, HCAP Partners V, L.P. had strong support from a diverse investor base of existing limited partners from previous funds and new limited partners, including highly regarded foundations, financial institutions, and family offices. The firm is currently deploying capital from its new Fund with a focus on investments in the healthcare, software, and services industries.

"We are grateful for the confidence placed in us by both our returning and new investors," said Tim Bubnack, Managing Partner of HCAP Partners. "This backing is a reflection of the strong team we have built and all of their hard work supporting the success of our portfolio companies. The new funding enables HCAP to continue providing creative and flexible deal structures to growth-stage companies. As a leading impact investor, we are excited about expanding our portfolio and providing not only capital solutions but also our expertise to companies in our target markets."

"The strong backing of investors and the industry's growing recognition of the attractiveness of funds like these is encouraging for the bright future of impact investing," said Ford Foundation Director of Mission Investments Roy Swan. "We are proud to support HCAP Partners and its work to unlock resources for underserved businesses so they have the tools they need to grow, spurring new opportunities and high-quality jobs where they're needed most."

HCAP Partners is focused on the lower middle market, serving companies seeking debt and equity for growth, acquisitions, and other strategic initiatives. The firm actively engages with its portfolio companies to provide value-added resources such as operational and financial guidance, capital raising, and strategic exit planning. Through its Gainful Jobs Approach™, HCAP works to facilitate a positive impact by implementing workplace initiatives within its portfolio aimed at creating and maintaining high-quality jobs.

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