Hudson Ferry Capital has received an SBIC license for its second fund, a $100 million vehicle that makes “buy-in” investments in established, family-owned U.S. businesses.
Hudson Ferry Capital is pleased to announce that it has received its license from the Small Business Administration to operate Hudson Ferry Capital II, L.P. (“HFC II”) as a Small Business Investment Company (“SBIC”). HFC II is now a $100 million SBIC focused on making “buy-in” investments in established, family-owned U.S. businesses. Hudson Ferry defines “buy-ins” as control investments with existing managers that retain substantial ownership positions. This creates a true partnership with a common goal to transform a small or regional business into a large, integrated enterprise and thereby create significant value.
“The availability of capital for small to mid-sized companies has significantly declined as bank mergers, the lack of corporate lending and the migration of private equity firms up-market has reduced the number of capital sources. As an SBIC focused on the lower end of the middle market, Hudson Ferry Capital is well positioned to be a preferred capital partner,” said Timothy Ross, an HFC Partner. HFC II has made two portfolio investments: Contrax Furnishings (www.contrax.com) and Mason Dixon Energy (www.mdenergy.com), both of which closed in March 2010.
The SBIC program is a unique public/private partnership that has provided in excess of $57 billion in financing to more than 107,000 small U.S. companies since the program’s creation in 1958. Through this program, the federal government is the largest single investor in U.S. private equity funds.