HCAP Partners Announces Final Close of New $353 Million SBIC Fund

San Diego-based Impact Investor Closes Its Fifth Fund, Exceeding Its Initial Fundraising Target

SAN DIEGO, Sept. 15, 2022 /PRNewswire/ — HCAP Partners, a California-based private equity firm and nationally recognized impact investor, today announced the final close of its second SBIC fund, HCAP Partners V, L.P. (“Fund”). The Fund was oversubscribed with total commitments of $353 million including anticipated leverage from the SBA, exceeding the initial fundraising target by over forty percent. Operating as a U.S. Small Business Administration SBIC (Small Business Investment Company), the Fund will continue the firm’s strategy of investing in underserved businesses in the lower middle market and implementing the Gainful Jobs Approachâ„¢, its platform designed to measure and improve job quality standards across its portfolio.

More than twice the size of its predecessor fund, HCAP Partners V, L.P. had strong support from a diverse investor base of existing limited partners from previous funds and new limited partners, including highly regarded foundations, financial institutions, and family offices. The firm is currently deploying capital from its new Fund with a focus on investments in the healthcare, software, and services industries.

“We are grateful for the confidence placed in us by both our returning and new investors,” said Tim Bubnack, Managing Partner of HCAP Partners. “This backing is a reflection of the strong team we have built and all of their hard work supporting the success of our portfolio companies. The new funding enables HCAP to continue providing creative and flexible deal structures to growth-stage companies. As a leading impact investor, we are excited about expanding our portfolio and providing not only capital solutions but also our expertise to companies in our target markets.”

“The strong backing of investors and the industry’s growing recognition of the attractiveness of funds like these is encouraging for the bright future of impact investing,” said Ford Foundation Director of Mission Investments Roy Swan. “We are proud to support HCAP Partners and its work to unlock resources for underserved businesses so they have the tools they need to grow, spurring new opportunities and high-quality jobs where they’re needed most.”

HCAP Partners is focused on the lower middle market, serving companies seeking debt and equity for growth, acquisitions, and other strategic initiatives. The firm actively engages with its portfolio companies to provide value-added resources such as operational and financial guidance, capital raising, and strategic exit planning. Through its Gainful Jobs Approachâ„¢, HCAP works to facilitate a positive impact by implementing workplace initiatives within its portfolio aimed at creating and maintaining high-quality jobs.

About HCAP Partners

HCAP Partners is a diversely owned private equity firm specializing in provide mezzanine debt and private equity for underserved, lower-middle market companies throughout California and the Western United States. The firm seeks to invest $3 million to $25 million in established businesses generating between $10 million and $100 million in revenues in the healthcare, software, services, and manufacturing industries. HCAP Partners has invested in over 60 companies since its founding and through ongoing, active engagement with portfolio companies provides value-added resources to help optimize performance and increase enterprise value. The firm has been recognized as an ImpactAssets 50 fund nine years running and, through its Gainful Jobs Approachâ„¢, works to facilitate a positive impact on underserved businesses, their employees, and their communities through active portfolio engagement. For more information, please visit http://www.hcap.com/.

Tim Bubnack
HCAP Partners
(858) 259-7654