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 article, we explore the top ten SBIC funds in the South launched since 2020, highlighting their strategies, trends shaping the market, and key takeaways for GPs and LPs.
Top SBIC Funds in the South (2020s)
1. Valesco Fund III, L.P.
- Location: Dallas, TX
- Managed by: Valesco Industries
- Vintage Year: 2022
- Fund Size: $396,743,207
- Average Investment: $15,083,333
- Strategy: Hybrid Debt/Equity
- Fund Style: Hybrid
- Making New Investments?: Yes
- Contact: Daniel H. Moore
2. Kian Growth Partners III, L.P.
- Location: Charlotte, NC
- Managed by: Kian Capital
- Vintage Year: 2023
- Fund Size: $388,454,636
- Average Investment: $4,826,742
- Strategy: Buyout
- Fund Style: Growth Equity
- Making New Investments?: Yes
- Contact: Kevin McCarthy
3. Five Points Credit SBIC IV, L.P.
- Location: Winston-Salem, NC
- Managed by: Five Points Capital, Inc.
- Vintage Year: 2021
- Fund Size: $352,797,529
- Average Investment: $2,505,205
- Strategy: Mezzanine
- Fund Style: Hybrid
- Making New Investments?: Yes
- Contact: Stewart Edwards
4. Rochefort Ventures LP
- Location: West Palm Beach, FL
- Managed by: Rochefort Management LLC
- Vintage Year: 2024
- Fund Size: $278,090,000
- Average Investment: $21,900,000
- Strategy: Direct Lending
- Fund Style: Private Credit
- Making New Investments?: Yes
- Contact: Steele Schottenheimer
5. Five Points Credit SBIC V LP
- Location: Winston-Salem, NC
- Managed by: Five Points Capital, LLC
- Vintage Year: 2025
- Fund Size: $269,039,000
- Average Investment: –
- Strategy: Mezzanine
- Fund Style: Private Credit
- Making New Investments?: Yes
- Contact: Whit Edwards
6. Canapi Ventures SBIC Fund II, L.P.
- Location: Washington, DC
- Managed by: Canapi Ventures
- Vintage Year: 2022
- Fund Size: $269,607,907
- Average Investment: $2,643,736
- Strategy: Balanced Venture
- Fund Style: Venture
- Making New Investments?: Yes
- Contact: Walker Forehand
7. LongueVue Capital Partners IV, L.P.
- Location: Metairie, LA
- Managed by: LongueVue Management Company, LLC
- Vintage Year: 2022
- Fund Size: $272,500,000
- Average Investment: $6,188,664
- Strategy: Hybrid Debt/Equity
- Fund Style: Hybrid
- Making New Investments?: Yes
- Contact: Becky Toups — 504-293-3607
8. SharpVue Capital Credit Fund III, L.P.
- Location: Raleigh, NC
- Managed by: SharpVue SBIC Management, L.P.
- Vintage Year: 2024
- Fund Size: $243,000,000
- Average Investment: –
- Strategy: Mezzanine
- Fund Style: Private Credit
- Making New Investments?: Yes
- Contact: James Burke
9. Plexus Fund VII-A, L.P.
- Location: Raleigh, NC
- Managed by: Plexus Capital, LLC
- Vintage Year: 2024
- Fund Size: $277,000,000
- Average Investment: –
- Strategy: Hybrid Debt/Equity
- Fund Style: Private Credit
- Making New Investments?: Yes
- Contact: Michael Painter
10. New Canaan Funding Mezzanine VII SBIC, L.P.
- Location: Naples, FL
- Managed by: New Canaan Funding Leverage Mezzanine Advisors, LLC
- Vintage Year: 2020
- Fund Size: $241,300,000
- Average Investment: $4,808,889
- Strategy: Mezzanine
- Fund Style: Hybrid
- Making New Investments?: Yes
- Contact: Mark Thies
Ranked Insights for GPs
- Strategy Differentiation – Southern SBICs show stronger diversification across mezzanine, hybrid debt/equity, direct lending, buyout, and even venture compared to other regions. Leaders like Valesco and LongueVue lean on flexible hybrid structures, while Canapi Ventures brings a rare SBIC venture capital platform focused on fintech. Funds like Rochefort specialize in direct lending with larger checks, creating distinct positioning for LPs.
- Repeatability & Track Record – North Carolina-based firms like Five Points Capital demonstrate repeatability with successive mezzanine SBICs (Funds IV & V), while established players like New Canaan continue their multi-vintage mezzanine strategies. Repeat issuers provide LPs with continuity and de-risked execution, a key advantage in competitive capital formation environments.
- Deal Size Specialization – Southern SBICs span a wide range — small mezzanine checks under $5M (Five Points IV), balanced growth equity plays (Kian Growth Partners), and large-scale direct lending commitments north of $20M (Rochefort). This spread illustrates the South’s flexibility, with funds tailoring themselves to fit underserved niches from small family transitions to institutional-sized financings.
- Ecosystem & Geography – The South benefits from fast-growing metros (Charlotte, Raleigh, Dallas, Miami) and sectoral strengths in financial services, healthcare, tech-enabled services, and industrials. DC-based Canapi Ventures adds a fintech regulatory angle, while Texas and Florida bring scale and deal volume. Louisiana’s LongueVue demonstrates how SBICs can thrive in regional hubs outside traditional financial centers.
- Capital Formation & Scaling – Fund sizes in the South are routinely breaking the $250M+ mark, with Valesco, Kian, Five Points, LongueVue, and Rochefort leading the way. This signals strong LP demand and SBA leverage utility in scaling platforms. Repeat issuers and newer entrants alike are proving that Southern markets can absorb institutional-level SBIC commitments while maintaining a lower middle-market focus.
- SBA-Driven LP Advantages – Southern SBICs are positioned to capitalize on SBA leverage in regions with strong bank participation and CRA credit demand. With new Accrual Debentures and Reinvestor Debentures, GPs like Canapi and Valesco can align more closely with venture and fund-of-funds structures. This flexibility makes the South attractive for LPs looking to blend yield, equity upside, and policy-driven incentives (rural/low-income deal carve-outs).
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.
