Abacus Finance Group has received a Small Business Investment Company (SBIC) license and has closed its inaugural SBIC fund, Abacus Finance SBIC Fund I LP (Fund I).
The Small Business Investment Company (SBIC) program was created by the U.S. Small Business Administration (SBA) in 1958 to help small businesses access capital by partnering private investment firms with government-backed capital.
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.
According to Abacus, the newly licensed SBIC fund will allow the firm to build on its reputation of supporting U.S.-based lower-middle market businesses and their financial sponsors.
“Receiving our SBIC license and holding our first closing of this fund is a testament to both our Total Partnership Approach™ (TPA) and dedication to helping small businesses succeed,” said Tim Clifford, the CEO of Abacus. “This partnership with the SBA equips us with even greater tools to fuel the growth and resilience of the businesses we serve.”
Abacus provides cash-flow-based senior financing to private equity-sponsored, lower middle-market companies across a wide range of industries. The firm targets private debt financing opportunities of up to $60 million and finances companies with EBITDA between $3 million and $15 million. Since Abacus’s founding in June 2011, it has closed over $3.5 billion in financings.
One of Abacus’s recent transactions was the October backing of Achieve Partners’ acquisition of Ascend Partners, a Philadelphia and Toronto-based provider of enterprise performance management services. Ascend Partners specializes in implementing and managing OneStream software, which supports financial consolidation, reporting, budgeting, planning, forecasting, and integration with other financial systems. To support Achieve Partners in the acquisition, Abacus acted as both administrative agent and lead arranger on senior secured credit facilities, in addition to making an equity co-investment in Ascend Partners.
Abacus was co-founded in 2011 by Mr. Clifford and its COO Sean McKeever. The firm’s two other partners, Managing Directors Seth Friedman and Eric Petersen, have been instrumental in the firm’s past growth and its future prospects. Other key investment professionals at Abacus who contributed to obtaining the SBIC license include Rafal Rydzewski, Joseph Lee, Austin Rendell, Greg Scanlon, Matt Campanella, and Afsheen Ali.
Abacus is headquartered in New York City and is an affiliate of New York Private Bank & Trust, founded in 1850.
© 2024 Private Equity Professional | December 20, 2024
