INVESTMENT CRITERIA

Flexible Capital for Proven Businesses

IBC Funds targets established, lower middle-market companies across a range of industries. We provide flexible junior capital to support majority buyouts, growth & expansion, recapitalizations, acquisition financing, and management & generational transitions. Our team works closely with sponsors and management teams to structure investments that provide meaningful alignment of incentives across all stakeholders and support long-term value creation.

IBC Funds targets established, lower middle-market companies across a range of industries. We provide flexible junior capital to support majority buyouts, growth & expansion, recapitalizations, acquisition financing, and generational transitions. Our team works closely with sponsors and management teams to structure investments that align incentives and support long-term value creation.

FINANCIALS

Revenue: $10 to $100 million
EBITDA: $2 million to $10 million
EBITDA Margin: >10%
Geography: U.S.-Based Operations

INDUSTRIES

Light/Niche Manufacturing, Business Services, Value-Added Distribution, Aviation/Defense, Industrial Services, Specialty Food & Beverage, Healthcare Services, Energy Services

TRANSACTION TYPES

Recapitalizations, Expansion/Growth Financings, Acquisition Financings, Management Buyouts, Independent Sponsor & Funded Private Equity Sponsor Buyouts, Refinancings

COMPANY CHARACTERISTICS

Proven Management Team, Strong Free Cash Flow, Differentiated Product/Service, Unique Market Opportunity, Defined Growth Plan

INVESTMENT RANGE & STRUCTURE

Investment Range & Structure: $5 – 20 million (Sole Investor), up to $50 million (leading a syndicate of SBICs). Subordinated Debt with Warrants, Preferred & Common Equity

AVOIDED SITUATIONS

Real Estate, Turnarounds, Start-Ups, Finance Companies, Non-U.S. Companies

FINANCIALS

Revenue: $10 to $100 million, EBITDA: $2 million to $10 million, EBITDA Margin: >10%, Geography: U.S.-Based Operations, Investment Range & Structure: $5–20 million (Sole Investor), Up to $50 million (leading a syndicate of SBICs), Subordinated Debt with Warrants, Preferred & Common Equity

INDUSTRIES

Industries: Light/Niche Manufacturing, Business Services, Value-Added Distribution, Aviation/Defense, Industrial Services, Specialty Food & Beverage, Healthcare Services, Energy Services

TRANSACTION TYPES

Transaction Types: Recapitalizations, Expansion/Growth Financings, Acquisition Financings, Management Buyouts, Independent Sponsor & Funded Private Equity Sponsor Buyouts, Refinancings

COMPANY CHARACTERISTICS

Company Characteristics: Proven Management Team, Strong Free Cash Flow, Differentiated Product/Service, Unique Market Opportunity, Defined Growth Plan

INVESTMENT RANGE & STRUCTURE

Investment Range & Structure: $5 – 20 million (Sole Investor), up to $50 million (leading a syndicate of SBICs). Subordinated Debt with Warrants, Preferred & Common Equity

AVOIDED SITUATIONS

Real Estate, Turnarounds, Start-Ups, Finance Companies, Non-U.S. Companies