LongWater Closes Massive $262.5M SBIC Fund in the United States as Private Credit Firm Aggressively Expands Lower Middle Market Lending Strategy Nationwide

Private markets investment firm LongWater has completed the closing of its debut Small Business Investment Company (SBIC) fund, raising more than $262.5 million in combined private capital and leverage provided through the U.S. Small Business Administration program.

The milestone marks a significant expansion of the firm’s strategy in the lower middle market across the United States.

Broad Investor Base Supports the Fund’s Launch

The fund attracted backing from a wide range of investors, reflecting strong institutional and private confidence in the strategy.

Participants included publicly traded and privately held banks, insurance companies, family offices, institutional investors, and high-net-worth individuals.

This diversified capital base is expected to support LongWater’s ability to deploy flexible financing solutions while maintaining a broad reach across different sectors and business profiles.

Focus on Lower Middle Market Financing Opportunities

The newly closed fund is designed to target direct private credit and non-control equity investments in lower middle market companies throughout the United States.

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These businesses often operate with strong fundamentals and clear growth potential but may lack consistent access to traditional financing channels.

LongWater’s approach emphasizes partnership with private equity sponsors and management teams, offering adaptable capital structures tailored to complex or underserved financing needs.

The strategy is aimed at helping companies scale while preserving operational independence.

Experienced Leadership Drives Capital Solutions Strategy

The fund is managed by LongWater’s Capital Solutions team, led by Senior Managing Director Kevin Prunty.

He is joined by Managing Directors Trevor Gibson, Nick Careklas, Ben Dinehart, and Sam Panke.

Based in St. Louis, Missouri, the team has already begun deploying capital, having supported eight portfolio companies across the country since initiating investments.

LongWater’s Expanding Private Markets Platform

Founded in 2009, LongWater has developed into a multi-platform private markets firm with offices in Fargo, Dallas, and St. Louis.

The company operates through two core divisions: LongWater Private Equity and LongWater Capital Solutions.

With approximately $1 billion in regulatory assets under management and a network of more than 220 investors, the firm continues to position itself as a key gateway to lower middle market opportunities across private credit and equity strategies in the U.S.