Levine Leichtman Capital Partners SBIC Fund, L.P. is a small business investment company (the “SBIC”) regulated by the U. S. Small Business Administration (the “SBA”). The investment approach of the SBIC will be to continue LLCP’s historically successful strategy of making structured equity investments in entrepreneurially led companies. Entrepreneurs who do not want to sell control of their companies will find this approach particularly attractive. The SBIC will focus on investments in companies that are located in the United States and have revenues of less than $50 million at time of investment and otherwise comply with the SBA regulations.
LLCP believes that the current economic environment is particularly attractive for its SBIC structured equity investment approach. Traditional financing sources have been unavailable to the SBIC’s target portfolio companies for the last several years. As a result, there has been a significant increase in the number of quality investment opportunities for LLCP’s investment approach.
The principal component of the SBIC structured equity investment strategy is investing in companies with experienced entrepreneurial management teams who hold significant equity stakes in their companies. The SBIC expects to enhance its investment returns by obtaining low cost leverage under the SBA program.
Post investment, management teams benefit from LLCP’s value added expertise as we offer sophisticated financial and strategic advice, introductions to new contacts, as well as follow-on growth and acquisition capital to fully realize returns for the company and for our institutional partners.
