CHEVY CHASE, Md. - Farragut Capital Partners, LLC announced today that its mezzanine investment fund, Farragut Mezzanine Partners III, LP (the “Fund”), has received a license from the United States Small Business Administration (“SBA”) to operate as a Small Business Investment Company (“SBIC”).
The license gives Farragut access to up to $150 million in SBA-backed borrowings with a ten-year term at a fixed interest rate, currently under 3%. Farragut will use these funds, combined with privately-raised capital, to invest in strong, growing small and mid-sized U.S. businesses.
“We are pleased to partner with the SBA to provide attractive capital to solid, growing companies in the United States that do not have access to the wider capital markets as many banks have chosen to focus on larger companies”, said Phil McNeill, Managing Partner of FCP. “Our team has a remarkable long-term record of identifying and investing in companies that are leaders in profitable niche markets and led by great entrepreneurs.”
Farragut has already made one investment out of the new Fund. Current investors in the Fund include a number of financial institutions, family offices, and business leaders in the DC-metro area. Farragut will continue to fundraising through early 2013.
The firm was founded by industry veterans, Philip A. McNeill, Javier E. Aguirre, and G. Cabell Williams, III in 2011 and includes former U.S. Congressman J.C. Watts as Senior Partner and Senior Advisor. Prior to founding Farragut, Messrs. McNeill and Aguirre managed the SPP Mezzanine Partners family of investment funds.
Previously, Messrs. McNeill and Williams had a combined 32 years working together at Allied Capital Corporation, where they served as coheads of the Allied Capital’s $1.7 billion Private Finance and Mezzanine group before leaving the firm in 2002 and 2004, respectively.
About Farragut Capital Partners
Founded in 2011, Farragut Capital Partners, LLC is a private investment management firm providing mezzanine debt and equity capital to finance leveraged and management buy-outs, generational transfers, growth capital financings, and recapitalizations. The firm is actively investing out of its latest investment vehicle, Farragut Mezzanine Partners III, LP. Farragut seeks to invest up to $10 million in established small and middle market companies with proven business models and stable cash flows. The firm targets companies with strong, committed management teams and the potential for significant growth in equity value.
Farragut specializes in asset-light businesses with unique and defensible market positions, stable business models, and reasonable capital expenditure and working capital needs. The firm works with owners (family businesses, equity sponsors, and fundless sponsors), senior lenders, and directly with management teams to create and build value in its portfolio companies over time.