SAN DIEGO, Sept. 15, 2022 — Hcap Partners, a renowned private equity firm based in California and a nationally recognized impact investor, has announced the final closing of its HCAP Partners V, L.P. (“Fund”), its second Small Business Investment Company (SBIC) fund. The Fund’s closing was notably oversubscribed, securing total commitments of $353 million, which includes anticipated leverage from the SBA. This achievement surpasses the initial fundraising target by over forty percent, underscoring strong investor confidence in HCAP Partners‘ strategy and approach.
Operating as an SBIC under the U.S. Small Business Administration, the Fund will enable HCAP Partners to continue its established investment strategy. This strategy focuses on supporting underserved businesses within the lower middle market. Furthermore, HCAP Partners will continue to implement its proprietary Gainful Jobs Approach™, a unique platform designed to rigorously measure and enhance job quality standards across all companies within its investment portfolio.
HCAP Partners V, L.P. has more than doubled in size compared to its predecessor fund, reflecting significant growth and investor enthusiasm. The fund attracted robust support from a diverse investor base. This base included returning limited partners who had invested in previous HCAP Partners funds, as well as new limited partners encompassing highly respected foundations, financial institutions, and family offices. Currently, HCAP Partners is actively deploying capital from this new Fund, strategically focusing on investments within the high-growth healthcare, software, and services industries.
“We deeply appreciate the trust and confidence our returning and new investors have placed in us,” stated Tim Bubnack, Managing Partner of HCAP Partners. “This strong support is a testament to the exceptional team we have cultivated and their unwavering dedication to the success of our portfolio companies. This new fund empowers HCAP Partners to expand our capacity to offer creative and flexible deal structures to companies in the growth stage. As a leading impact investor, we are excited to broaden our portfolio and contribute not only essential capital solutions but also our deep industry expertise to businesses in our target markets.”
Roy Swan, Director of Mission Investments at the Ford Foundation, also commented on the fund closing and the broader impact investing landscape. “The significant backing from investors and the increasing recognition of the value of funds like these is a positive sign for the promising future of impact investing,” Swan noted. “The Ford Foundation is proud to support HCAP Partners and their crucial work in unlocking vital resources for underserved businesses. This support equips these businesses with the necessary tools for growth, fostering new opportunities and generating high-quality jobs in communities where they are most needed.”
HCAP Partners maintains a focused approach on the lower middle market, catering to companies seeking both debt and equity financing to fuel growth, facilitate strategic acquisitions, and support other key strategic initiatives. HCAP Partners distinguishes itself through its active engagement with its portfolio companies, providing valuable resources that extend beyond capital. These resources include operational and financial guidance, assistance with capital raising, and strategic exit planning. Through the implementation of its Gainful Jobs Approach™, HCAP Partners actively promotes positive social impact by championing workplace initiatives within its portfolio companies. These initiatives are specifically designed to create and sustain high-quality jobs, benefiting both employees and the broader community.
About HCAP Partners
HCAP Partners is a diversely owned private equity firm specializing in providing mezzanine debt and private equity to underserved, lower-middle market companies located throughout California and the Western United States. The firm’s typical investment ranges from $3 million to $25 million in established businesses generating annual revenues between $10 million and $100 million. HCAP Partners focuses its investments across the healthcare, software, services, and manufacturing sectors. Since its inception, HCAP Partners has invested in over 60 companies, consistently providing value-added resources through active engagement to optimize portfolio company performance and enhance enterprise value. HCAP Partners has received repeated recognition as an ImpactAssets 50 fund for nine consecutive years. Through its Gainful Jobs Approach™, the firm actively works to generate a positive impact on underserved businesses, their employees, and their communities through dedicated portfolio engagement. For additional information, please visit http://www.hcap.com/.
Contact:
Tim Bubnack
HCAP Partners
[Email](mailto:[email protected])
(858) 259-7654
SOURCE HCAP Partners
