Corbel Capital Partners has closed Corbel Equity Partners SBIC LP (CEP III) with over $200 million in capital commitments.
CEP III is one of the first licensees approved by the Small Business Administration (SBA) under its new accrual program. The regulatory framework for this program was established in August 2023 to create a new type of Small Business Investment Company (SBIC) called an Accrual SBIC.
At the core of the Accrual SBIC is the introduction of a new financial instrument called the “Accrual Debenture.” Unlike standard SBIC debentures that require semi-annual interest payments, Accrual Debentures allow interest to accrue over their 10-year term. This structure is designed to align better with the cash flows of longer-duration and equity-oriented investment strategies.
“We’re honored to be one of the first managers the SBA has approved for their new equity accrual fund program,” said Jeff Schwartz, the managing partner of Corbel Capital. “This is our third license from the SBA, which demonstrates our commitment to supporting businesses in the lower middle market and provides an additional vehicle to partner with independent sponsors, private equity sponsors, entrepreneurs and management teams to finance and support growth in their companies.”
CEP III will make growth and buyout investments of $10 million to $25 million in companies that have less than $100 million of revenue and less than $20 million in EBITDA. Two recent investments by Corbel Capital Partners include a co-investment in STAT Recovery and an investment in USI Holdings.
In May 2024, Corbel co-invested in STAT Recovery, a fintech company based in Arkansas, which was acquired by Cambridge Capital. STAT specializes in machine learning-based invoice auditing software, designed to help retail suppliers recover lost revenue by addressing improper deductions and compliance fines from major retailers. Such deductions can account for up to 2% of suppliers’ retail sales, amounting to tens of billions of dollars annually in the U.S. Since its inception, STAT has audited over $250 billion in retail transactions, enabling suppliers to recover more than $500 million in improper charges over the past five years.
In March 2024, Corbel invested in Universal Services (USI), a Minnesota-based company offering outsourced construction, fulfillment, restoration, and maintenance services for both wireline and wireless infrastructure. USI’s clientele includes major telecom providers such as Comcast, T-Mobile, Verizon, and AT&T.
Los Angeles-based Corbel was founded by Jeffrey Schwartz, a former investment professional at Ares Management and Gores Group. Other senior members of Corbel’s team include Chief Investment Officer Jeffrey Serota and Managing Directors Michael Jones and Brian Yoon.
With the closing of CEP III and since its founding in 2013, Corbel has now raised more than $1 billion in capital and has invested in over 50 platform investments.
© 2024 Private Equity Professional | October 18, 2024
Victor Capital Partners has held a final, above target, and oversubscribed closing of Victor Capital Partners Fund II LP with $310 million of capital commitments. The fund was backed by both existing and new institutional investors.
Victor Capital completed its first investment for Fund II in January 2024 with the acquisition of 
“There are so many great branded businesses across the lower middle market at inflection points in their lifecycles that we believe would benefit from the right strategic partner to help accelerate their growth trajectories,” said Douglas Korn, the founder and managing partner of Victor Capital. “Our mission is to identify and collaborate with exceptional management teams, forming powerful partnerships to help them build businesses that are not only bigger and more profitable but stronger, more resilient, and fundamentally more valuable. We are grateful for the confidence our investors continue to place in us to execute our investment strategy on their behalf and will continually strive to achieve shared long-term success.”
Achieve Partners has made an investment in Ascend Partners, a provider of consulting and software services to businesses to enable them to better manage their financial processes.
Publicly traded 
“Ascend’s proven track record in navigating the complexities of FP&A software integration sets them apart in a rapidly growing field,” concluded Corinne Spears, a principal at Achieve Partners. “As the role of the CFO continues to expand across various industries, we’re laying the groundwork for Ascend to further its leadership position and meet the rising demand for more advanced budgeting, planning, and reporting solutions.”
“I am glad that we were able to close our first deal with Abacus,” said Managing Director Aanand Radia. “They quickly understood the business and were extremely constructive. We found them easy to work with, and the transaction was handled smoothly and efficiently.”
“We were pleased to have had the opportunity to complete our first transaction with the Achieve Partners team,” said Tim Clifford, the president and CEO of Abacus. “Our ability to meet Achieve’s desire for a smooth execution in a short timeframe is just one of the many attributes of our Total Partnership Approach™.”
New York City-headquartered 
GenNx360 Capital Partners has agreed to sell its portfolio company, ITsavvy, to publicly traded Xerox Holdings for $400 million comprised of $180 million in cash at closing and $220 million in secured promissory notes.
“The success of our investment in ITsavvy is a testament to the growth achieved during our partnership with management over the past two years,” said Ron Blaylock, a managing partner at GenX360 and the board chairman of ITsavvy. “We are pleased with the company’s transformation under our ownership and wish Munu and team all the best going forward.”
“It has been a privilege to work with Munu and the ITsavvy team over the past two years. We are incredibly proud of the company’s growth and look forward to following their success in the future,” said Peter White, a principal at GenNx360 and a member of ITsavvy’s board.
