Baltimore-based private equity firm Patriot Capital has closed its fourth SBIC fund with investable capital of over $250m, beating its initial target by more than 20 per cent.
Patriot Capital III, which the firm said received “overwhelming support” from both existing and new institutional investors, will provide debt and equity capital to mid-market companies.
Since 1999 the Patriot funds have invested in more than 92 mid-market businesses and the firm currently has $550m under management.
Partner and chief investment officer of Patriot Capital Tom Holland said, “In addition to all of the key underwriting elements, Patriot Capital ensures that the capital structure of the business matches the business strategy of the portfolio company. In this way, all stakeholders can maximize their investment returns.”
SBICs use a combination of funds raised from private sources and money raised through the use of Small Business Administration (SBA) guarantees, to make equity and mezzanine capital investments in small businesses.
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