Abacus Finance Group has held a final and oversubscribed close of its first Small Business Investment Company vehicle, Abacus Finance SBIC Fund I LP (Fund I), with $262.5 million in capital.
Abacus secured $87.5 million in private commitments and leveraged the U.S. Small Business Administration’s SBIC program to reach its hard-cap target. The fund’s private commitments came from both institutional and high-net-worth investors such as banks, endowments, family offices, and insurance companies.
Fund I is led by CEO and Founding Partner Tim Clifford, President and Founding Partner Sean McKeever, Managing Director Seth Friedman, and Managing Director Eric Petersen. This team has more than 125 years of experience in lower middle-market lending.
“We are incredibly grateful for the overwhelming support we’ve received in launching our first fund,” said Mr. Clifford. “Achieving this successful closing as a first-time fund manager speaks to the confidence our investors have placed in our team and our commitment to supporting the growth of small businesses across the country. This milestone positions us to make meaningful investments that will drive job creation and economic growth.”
SBICs are privately owned and managed investment firms that combine their own capital with funds borrowed at favorable rates through SBA guarantees to provide long-term debt and equity investments to small businesses. The program allows SBICs to leverage their private capital to increase their funding capacity and potentially achieve stronger returns while supporting small businesses.
“The SBIC program provides us with a unique opportunity to amplify our impact in the small business community,” said Mr. McKeever. “With this enhanced capital base, we can support entrepreneurs who might otherwise struggle to access the growth capital they need. Our focus remains on identifying businesses with strong fundamentals and exceptional management teams that are positioned to create sustainable value and meaningful employment opportunities.”
Abacus targets debt financing opportunities of up to $60 million and invests in companies with EBITDA between $2 million and $15 million. Fund I has already deployed approximately 40% of its capital and expects to invest the remainder over the next 9 to 18 months.
“We see tremendous potential in the small and medium-sized business sector, particularly in companies that are generating positive cash flow but need capital to accelerate their growth trajectory,” said Mr. Petersen. “Our disciplined investment process focuses on businesses where we can add real value beyond just capital – whether through operational expertise, strategic guidance, or helping them access new markets. This fund positions us to be true partners with management teams as they scale their operations.”
For example, earlier this year Abacus provided both debt and equity to back acquisitions by LFM Capital and WestView Capital. In April, the firm provided senior debt financing and made an equity co-investment to back LFM’s acquisition of Marcy Laboratories, an Illinois-headquartered contract manufacturer specializing in perfumes, colognes, room sprays, and fragrance samplers for large fragrance brands and specialty retailers.
Similarly, in the WestView transaction, Abacus provided senior debt financing and made an equity co-investment to back WestView’s buy of Ottawa-headquartered Hoist Global, a systems integrator that provides consulting, implementation, and support services to companies operating in the aerospace and defense, energy utilities, construction, manufacturing, and telecommunication sectors. Hoist specializes in IFS software systems, a Sweden-based provider of cloud-based software for enterprise resource planning (ERP), enterprise asset management (EAM), and field service management (FSM). Hoist was founded in 2019 and is one of the largest IFS-focused systems integrators.
“We are deeply appreciative of the tremendous support we have received from our limited partners, who share our vision vis-à-vis empowering small business growth,” concluded Mr. Friedman. “Additionally, we are grateful for the partnership and support of the Small Business Administration, whose SBIC program enables us to provide much-needed capital to underserved markets and deserving entrepreneurs.”
Abacus Finance is headquartered in New York City and maintains a second office in Portsmouth, New Hampshire. The firm now manages approximately $1.3 billion in assets and has completed over $3.5 billion in total financings. Abacus is an affiliate of New York Private Bank & Trust, which was founded in 1850.
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