Five Points Capital is pleased to announce its final close on Five Points Credit SBIC IV, L.P. (the “Fund”) with $357 million in commitments, exceeding the original target of $325 million. The funds raised include commitments from institutional investors, family offices, and high net worth individuals, and include $175 million of leverage from the SBA debenture program. This new fund will enable Five Points to continue its successful strategy of providing debt and equity co-investment capital in support of lower middle market buyouts by partnering with private equity investors to build value, ensure financing certainty, and provide incremental capital for growth. The Five Points team has over 100 years of combined investment experience, a more-than-20-year track record of results, and the expertise that comes from a history of successful collaboration and creative problem-solving. The Fund commenced investing in June 2021 and concentrates on financing cash-flow-oriented businesses in select industries with EBITDA of $3 million or greater and opportunities for growth, both organically and through acquisition.
To date, the Fund has closed investments totaling approximately 20% of total capital. “The strong support from existing investors and many new investors enabled us to add additional talent and resources to support the growth of our credit platform,” said Whit Edwards, Managing Partner of Five Points Capital. “The Fund was oversubscribed which validates our disciplined underwriting approach, consistent investment strategy, unique sourcing capabilities, experienced team and track record of strong returns.“
“We have partnered with a great group of financial sponsors over the last two decades, and we are excited with our latest credit fund to continue supporting financial sponsors with creative financing solutions as they pursue attractive investment opportunities in the lower middle market,” said Jonathan Blanco, Managing Partner of Five Points Capital.