Bay Capital Funding, LP, (“BCF”) will invest in Small Business Investment Company funds (“SBICs”)
Seeking $100-200 million to invest in 10-15 SBICs over a two-year period
BCF founder Greg Mulligan has over 30 years of experience (including managing three SBICs) and an excellent investment track record
All investment sourcing, due diligence, monitoring and fund administration will be handled internally
BCF is unaware of any other fund-of-funds with BCF’s level of experience focused on the SBIC community
The SBIC program enables SBIC funds to access government leverage (debentures) at rates not available from traditional lending sources
SBIC Funds are generally eligible for two turns of leverage on their private capital, meaning an SBIC Fund with $87.5 million in private capital can access the maximum $175 million in SBA leverage for a total fund size of $262.5 million. SBA debentures carry 10-year terms and priced off 10-year US Treasury bonds – total pricing has ranged from 1.5% – 3% over the past ten years
As of of 2020, nearly 300 licensed SBIC funds managed almost $30 billion of capital – nearly every state has an SBIC fund
Due to its extensive experience, insights into the SBIC program, and long-term relationships with many fellow managers, BCF believes it will be well-positioned to identify the most promising SBICs
As a fund-of-funds, BCF can help many types of alternative investors gain access to the SBIC fund community and the lower middle market asset class
High Quality Opportunities
BCF anticipates having ample high-quality fund investment opportunities
the SBA has a highly selective application process to become a licensed SBIC fund, which takes about 12-18 months
the SBA conducts intensive due diligence and only fund managers with extensive track records are approved
there is a consistent stream of new SBIC funds – around 20 each with 38 currently in the approved SBA pipeline
charge-offs of total SBA debentures to SBIC funds are extremely low, typically well under 1% per year
the SBA conducts field audits annually on each SBIC fund
Gregory F. Mulligan (Partner)
Co-founder of Bay Capital Investment Partners and manager of three licensed SBIC funds.
Over 30 years of experience in debt and equity investing.
Former Managing Director of Citizens Capital, Inc. (SBIC) and a past president of the Northeast Regional Small Business Investor Alliance (SBIA).
Past board member of the National Association of SBICs. BA, Political Science, Boston College.
Mary Halvey (Partner & CEO)
Over 30 years of experience in finance and accounting, reporting, tax and administration.
Responsible for all financial reporting, L.P. reporting, and portfolio valuations for Bay Capital Investment Partners.
Formerly worked in various finance and accounting capacities at Axxon Capital (SBIC), RCN/Ultranet Communications, CA/Cullinet Software, and DRI/McGraw Hill.
Began career as an accountant at PriceWaterhouseCoopers. BS, Accounting, Magna Cum Laude, University of Connecticut. MS, Taxation, With Distinction, Bentley University. CPA, Massachusetts (expired).