Opus Bank announced that Opus Equity Partners Opportunity Fund I, L.P. (“SBIC Fund”) has received final committee approval for a license from the United States Small Business Administration (the "SBA") to operate as a Small Business Investment Company ("SBIC"). Opus Bank expects that the SBIC license will be issued following final action by the SBA Administrator. The SBIC Fund will be advised by Opus Bank’s wholly-owned subsidiary, Opus Equity Partners, LLC.
Opus Bank will sponsor the SBIC Fund with an anchor investment of $25 million, and it is anticipated that other investors in the SBIC Fund will primarily include banks seeking CRA investment credit and an alternative investment opportunity. The SBIC Fund managers will include Stephen H. Gordon, Founding Chairman, CEO and President of Opus Bank, Michael Allison, Co-President of Opus Bank, and Dale L. Cheney, President of Opus Bank's Merchant Banking Division.
Stephen H. Gordon, Founding Chairman, Chief Executive Officer and President of Opus Bank stated, “The establishment of this unique bank-sponsored, unleveraged SBIC fund is a meaningful differentiator that will enable Opus Bank to not only commit its balance sheet by providing senior debt solutions but also further address a company’s capital needs by committing equity.” Gordon added, “The growth equity investments that will be made by our principal investment platform will complement Opus Bank’s Merchant Banking, Commercial Banking and Wealth Services Divisions by providing a one-stop capital and advisory solution to both existing and prospective clients of the bank.”
Dale Cheney, President of the Merchant Banking Division continued, “The investment strategy of the SBIC Fund is focused on non-control, growth equity investments in highly profitable lower middle-market companies. While the lower middle-market is the largest segment, it is also the most inefficient when it comes to accessing institutional equity investment and sophisticated solutions. As a principal investor, our SBIC Fund will target this void in the market by partnering with talented management teams to provide the growth equity capital and strategic guidance necessary to unlock value and realize their vision, while not over-leveraging the SBIC Fund’s portfolio companies."
Opus Bank’s Merchant Banking Division is an integrated principal investing and financial advisory platform that provides a broad range of direct investment and advisory solutions to lower middle-market companies. The Merchant Banking Division includes Opus Equity Partners, LLC, the advisor to the Opus Bank-sponsored private equity SBIC Fund that provides growth capital to successful and dynamic companies in need of a capital solution beyond what is customarily available from traditional bank sources.