The SBIC program is a cornerstone of U.S. private capital, blending SBA leverage with private investment to back lower middle-market businesses, the backbone of the economy. Structured as pass-through entities, SBICs offer tax advantages, CRA credit, and fewer regulatory hurdles, while providing flexible financing for founder-led, family-owned, and underserved companies often missed by traditional PE and credit markets.
In this paper, we explore the top ten SBIC funds in the Midwest launched since 2020, highlighting their strategies, trends shaping the market, and key takeaways for GPs and LPs.
Top SBIC Funds in the Midwest (2020s)
1. CCP V-SBIC, L.P.
- Fund Size: $304,748,198
- Year: 2022
- Strategy: Mezzanine
- Style: Hybrid
- Location: Indianapolis, IN
- Managed by: Centerfield Capital Partners
- Contact: Faraz Abbasi
2. GMB Mezzanine Capital V, L.P.
- Fund Size: $333,661,375
- Year: 2023
- Strategy: Mezzanine
- Style: Private Equity
- Location: Minneapolis, MN
- Managed by: GMB Capital Partners
- Contact: Tom Kreimer
3. Eagle Fund VI-A, L.P.
- Fund Size: $299,441,311
- Year: 2024
- Strategy: Mezzanine
- Style: Hybrid
- Location: St. Louis, MO
- Managed by: Eagle Private Capital VI, Inc.
- Contact: Benjamin Geis
4. Stonehenge Opportunity Fund V, L.P.
- Fund Size: $285,091,815
- Year: 2023
- Strategy: Hybrid Debt/Equity
- Style: Hybrid
- Location: Columbus, OH
- Managed by: Stonehenge Partners
- Contact: Erin N. Bender
5. LongWater SBIC Fund I, L.P.
- Fund Size: $262,500,000
- Year: 2025
- Strategy: Hybrid Debt/Equity
- Style: Hybrid
- Location: Fargo, ND
- Managed by: LWO LLC
- Contact: Benjamin Dinehart
6. CCP VI-SBIC, L.P.
- Fund Size: $256,979,700
- Year: 2025
- Strategy: Mezzanine
- Style: Private Equity
- Location: Indianapolis, IN
- Managed by: Centerfield Management VI, Inc.
- Contact: Faraz Abbasi
7. Eagle Fund V, L.P.
- Fund Size: $254,459,818
- Year: 2022
- Strategy: Mezzanine
- Style: Hybrid
- Location: St. Louis, MO
- Managed by: Eagle Private Capital, LLC
- Contact: Benjamin Geis
8. Midwest Growth Partners IV, L.P.
- Fund Size: $250,000,000
- Year: 2024
- Strategy: Multiple
- Style: Private Equity
- Location: West Des Moines, IA
- Managed by: Midwest Growth Advisors IV, LLC
- Contact: Benjamin Fogle
9. Invision Capital III-A, L.P.
- Fund Size: $242,225,000
- Year: 2022
- Strategy: Mezzanine
- Style: Hybrid
- Location: Chicago, IL
- Managed by: Invision Management, Inc.
- Contact: Robert J. Castillo
10. AAVIN Capital III, L.P.
- Fund Size: $241,950,000
- Year: 2022
- Strategy: Buyout
- Style: Hybrid
- Location: Cedar Rapids, IA
- Managed by: AAVIN Private Equity
- Contact: James D. Thorp
Ranked Insights for GPs
- Strategy Differentiation – Midwest SBICs are heavily mezzanine- and hybrid-focused, but leading funds like Stonehenge and LongWater stand out by offering hybrid debt/equity structures that appeal to both conservative credit LPs and equity-seeking investors. Differentiation increasingly comes from sector focus (manufacturing, healthcare, ag/food) and ability to deliver flexible structures for family- and founder-owned companies.
- Repeatability & Track Record – Top funds like Centerfield (CCP series) and Eagle Private Capital are repeat issuers with consistent vintage pacing, proving their ability to raise successive SBIC funds and execute deals across cycles. Repeatability in licensing and successful deployment is a major credibility signal for LPs.
- Deal Size Specialization – Most Midwest SBICs target $3M–$15M checks, filling a gap too small for traditional buyout funds but too large for local banks. Granite Creek and GMB stand out for scaling up deal sizes, while Midwest Growth Partners focuses more broadly on multiple strategies to capture a wider deal spectrum.
- Ecosystem & Geography – The Midwest remains fertile for SBICs given its concentration of industrials, food/agriculture, and niche manufacturing companies. Ohio and Indiana dominate with repeat issuers, while Minnesota’s mezzanine funds (GMB, Northstar, NorthCoast) bring strong ties to the Twin Cities ecosystem. Iowa’s Midwest Growth Partners has carved out rural and ag-related niches.
- Capital Formation & Scaling – Fund sizes are climbing above $250M, signaling institutional LP confidence and a pivot toward scalable platforms that can deploy larger pools without losing flexibility. Repeat funds like CCP VI and Stonehenge Opportunity V demonstrate the Midwest’s ability to attract both SBA leverage and private capital at scale.
- SBA-Driven LP Advantages – LPs benefit from SBA leverage magnifying returns, CRA credit for banks, and lower risk relative to pure equity plays. With new IDG/Reinvestor Debentures, Midwest SBICs could lean more into equity-style investments and fund-of-funds structures — opening the door for more institutional and retail crossover LPs in future vintages.
SBA, SEC, and Congressional Developments
SBA Changes
- IDG Rule in Effect: Introduced Accrual Debentures (equity-focused) and Reinvestor Debentures (fund-of-funds), aligning SBICs with modern private capital strategies.
- Proposed Amendments: Streamlined licensing for follow-on funds and reduced barriers for investments in strategic sectors (e.g., critical minerals, tech).
Congressional Legislation
- Expanded Accredited Investor Definition: Bills like the Fair Investment Opportunities for Professional Experts Act would allow accreditation based on certifications or knowledge exams, expanding the LP pool.
- Investing in Main Street Act: Raises bank SBIC investment caps from 5% → 15% of capital, unlocking billions in new institutional capital.
- Investing in All of America Act: Incentivizes SBICs to invest in rural/low-income areas by exempting those deals from leverage caps.
SEC Changes
- Private Fund Rules: New reporting and disclosure requirements (fees, expenses, performance) increase compliance burdens for private fund advisors.
- Retail Access: SEC guidance removed the 15% cap on closed-end fund allocations to private funds, signaling greater openness to retail participation.
Conclusion
The SBIC landscape is shifting rapidly. SBA reforms are adding structural flexibility, Congress is considering measures that could unlock new capital and direct it to underserved sectors, and the SEC is lowering barriers to retail participation while raising transparency standards.
For GPs, success will hinge on clear strategy and disciplined fund progression; for LPs, broader access will come with higher due diligence demands. Together, these changes reinforce the SBIC program’s role as a vital bridge between policy priorities and private market innovation.
