IBC Funds has offices in Dallas, Texas and Little Rock, Arkansas, and is currently managed by Barry Conrad, Bill Miltenberger, Larry Carter and Meg Taylor. We are currently investing out of our newest fund, Fund IV, which was launched in June 2021 with approximately $180 million of investable capital, including $60 million of private capital raised from 41 independent community banks across Texas and Arkansas and an additional $120 million of commitments from the SBA.
Established in 2000 as one of the first investment vehicles for community banks, IBC Funds’ limited partner investor group is exclusively banks and financial institutions. IBC Funds has managed and invested out of four SBIC’s licensed by the SBA.
- Independent Bankers Capital Fund, L.P. (“Fund I”) was licensed in 2000 with $69 million of investable capital and has been fully invested into 12 companies.
- Independent Bankers Capital Fund II, L.P. (“Fund II”) was licensed in 2009 with $63 million of investable capital, began operations January 2010, and has been fully invested into 12 companies.
- Independent Bankers Capital Fund III, L.P. (“Fund III”) was licensed in January 2015 with $100 million of investable capital and has been fully invested into 15 companies.
- Independent Bankers Capital Fund IV, L.P. (“Fund IV”) was licensed and began operations June 2021 with approximately $180 million of investable capital.
IBC Funds participates in a variety of transactions including growth & expansion financings, recapitalizations, and buyouts across several industry segments. Importantly, IBC Funds seeks to partner with management teams that have a track record of achievement and seek to retain, or earn, significant ownership positions in the portfolio company. We are currently investing out of Fund IV with a target investment size typically ranging from $5 to 10 million per transaction, which can increase up to $30 million for transactions in which IBC Funds leads a syndicated co-investor group through our expansive network of co-investment partners. Our typical investments are structured as subordinated debt with warrants (for the purchase of common equity), preferred equity, or a combination of those securities. In evaluating a potential investment opportunity, IBC Funds seeks to provide flexible capital solutions that allow the company to optimize its capital structure to achieve its objectives while minimizing shareholder dilution.
Our primary goal is to back exceptional management teams pursuing extraordinary growth opportunities that meet our investment criteria. As such, we do not have any industry focus or bias but instead target industry leaders with defensible positions within growing or unique market opportunities. While we are industry generalists, we have extensive experience in manufacturing, business services, healthcare services, and consumer products transactions. Though IBC Funds has historically focused on transactions in the southern United States, we have invested in portfolio companies across the country from Seattle, Washington to Naples, Florida. Fund IV will expand its geographic focus to opportunistically pursue transactions throughout the United States from our extensive network of co-investors.
The investment team at IBC Funds has experience in all roles across every stage of the small business life cycle, including: entrepreneur, board member, capital sourcing and provider, and consultant. The collective investment team has invested more than $384 million into 106 portfolio companies across a broad range of industries and financing structures and has developed a strong reputation as an efficient and dependable financial partner. These experiences have produced the confidence and empathy needed to work effectively with private company owners and managers.
IBC Funds seeks to invest in companies with annual revenues of $20 to $50 million and operational cash flow greater than $2 million. Our typical portfolio company has historical EBITDA between $2 to $7 million, and has a history of consistent, non-cyclical earnings and sufficient tangible assets to support reasonable amounts of senior debt, if applicable. Enterprise values, generally, will not exceed $50 million with junior capital requirements of $10 million or less. Our typical investment size ranges from $5 to $10 million, with the capability of leading a syndicated group of co-investors to complete a larger capital raise. In rare situations, smaller investments may be considered.