Industry

Financial Services

Company Type

Private Equity and Mezzanine Fund

Size

$100 – 200 Million

Investment Type

Equity

For important risk and disclaimer information, Click Here.

BAY CAPITAL

Overview

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

 

BAY CAPITAL

SBIC Funds

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

BAY CAPITAL

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

BAY CAPITAL

Solution/Strategy

BAY CAPITAL

Leadership Team

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).

BAY CAPITAL

Learn More About This Transaction

0 Comments

Leave a reply

Your email address will not be published.

*

CONTACT US

Hi. We're not around right now. But you can send us an email and we'll get back to you, asap.

Thanks, Ken

Ken Margolis | Managing Partner Castle Placement, LLC
1460 Broadway Street, Rte 400
New York, New York 10036
(212) 418-1188 | C: (516) 712-7784
kmargolis@castleplacement.com

Sending

Log in with your credentials

Forgot your details?