RW Capital Partners is aiming to raise USD50m of private capital with a new fund that will provide loans to small businesses who are struggling through the recession-induced credit crunch.
RW Capital’s fund could be matched by up to USD100m in committed funds upon successful completion of its application to be licensed by the Small Business Administration as a Small Business Investment Company.
RW Capital Partners is a minority-owned private equity firm led by former Lazard and GE Capital managers with more than 30 years of combined experience in private equity, commercial lending, and management of more than USD4bn of investor capital.
“We believe that America’s economic recovery will be fuelled by small businesses,” says RW Capital founding partner Ellery W. Roberts. “For many small ventures, the only obstacle to recovery and growth is access to capital. RW Capital is strongly positioned to provide much-needed expansion capital to growing companies and to offer a unique opportunity for our investors and partners.”
The SBIC programme was created in 1958 to bridge the gap between entrepreneurs’ needs for capital and traditional financing sources. In 2009, SBIC financing of USD1.8bn benefited more than 1,400 companies.
RW Capital Partners recently received a “green light” letter from SBA to proceed to the next step in the SBIC licensing process. This interim step allows RW to attract private investors whose capital may be matched by a ratio of up to two-to-one by the SBA upon completion of licensing.
RW has created the 1847 SBIC Mezzanine Fund with the goal of raising USD50m from private sector partners.
“Upon completion of SBIC licensing, an investment with RW Capital would have the potential to realise returns that may be enhanced by the use of SBA leverage,” adds Roberts. “It is also an opportunity to partner with a minority-owned firm dedicated to a segment of the economy that requires significant capital to help drive a real economic recovery.”
