New York, NY– RF Investment Partners (“RF”), a New York based alternative asset manager, announced the successful close in June 2022 of its second Small Business Investment Company (“SBIC”) fund, RF Investment Partners SBIC II, LP (“Fund II”), at $355 million in aggregate capital commitments (including private capital and projected SBA leverage).
Fund II will continue RF’s strategy of taking an opportunistic approach to investing customized debt and equity solutions that best meet the needs of its partner companies and their management teams across the lower-middle-market. Fund II seeks to make investments between $5 million and $30 million in established and differentiated businesses with either $2 million to $10 million of EBITDA, or greater than $5 million in annual recurring revenue. RF will continue to deploy capital in the same disciplined and strategic manner that has resulted in attractive risk-adjusted returns across its first SBIC fund.
Peter Rothschild, Co-Founder and Managing Partner in New York, said, “We are incredibly grateful for the support and trust of our limited partners, portfolio companies, team members, and the SBA who have stood with us since day one. Together, we have delivered on the SBA’s mission of aiding small business owners with the growth, expansion, and modernization of their businesses while creating hundreds of new job opportunities across the U.S. Our team is dedicated to continuing our support of the small business community.”
Peter Fidler, Co-Founder and Managing Partner in Chicago, added, “As we enter uncertain economic times across the market, our ability to successfully raise a new fund exemplifies the confidence the SBA and our limited partners have placed in us. We believe our strategy strongly positions RF as an attractive option for business owners in today’s market and our new deal pipeline remains strong. Fund II is off to a great start having already deployed capital across three new platforms. We are excited to continue to create significant value for our investors in addition to the small business owners with whom we partner.”
Strong support from existing investors and commitments from new institutional investors resulted in RF receiving capital commitments well in excess of the original fundraising target.
Winston & Strawn LP served as legal advisor to RF in the formation of Fund II. RF did not use a placement agent.