Oxer Capital, Inc. has launched Oxer BCP Mezzanine Fund, L.P., a Small Business Investment Company (SBIC) licensed by the U.S. Small Business Administration (SBA) and created to fill the capital needs of lower middle-market private businesses.

Seasoned regional bank mezzanine capital investors Mark Bahlmann and Frank Capella teamed up with private company investor/advisor Dan Phlegar to create Oxer, which has raised over $122 million in private and SBA-backed capital. Oxer is actively looking to invest in profitable and growing businesses, primarily located in the Great Lakes region with annual revenues between $10 million and $100 million. The investment firm’s business model focuses on making direct, privately negotiated, non-control investments ranging from $2 million to $10 million per company. Typical uses of capital include growth initiatives, management buyouts, acquisitions, recapitalizations and employee stock ownership plans.

Oxer’s founders have over 60 years of collective experience investing in, lending to and advising lower middle-market private businesses. Combined, they have invested over $235 million in capital largely from within a regional bank. Their deep and diverse skills and knowledge provide them with the expertise to understand the specific capital needs and challenges faced by these businesses.

“Many successful private companies of this size lack the collateral to borrow from traditional banking sources and find raising the necessary equity capital to be too burdensome to pursue. And when companies can’t get money, they can’t grow,” explained Bahlmann. “Through our SBIC fund, Oxer can provide capital solutions so these companies can fuel their growth and strategic plans that ultimately enable job creation and economic growth.”

Oxer’s fund investors include established and well-respected community banks located throughout the Great Lakes region as well as accredited individuals. “Our firm is built upon a successful track record of collaboration, professionalism and trust while working within regional banks,” said Capella. “We understand the importance of a lender’s relationship and we continue to make every effort to maintain these core values with all of our partners.”

Oxer’s capital solutions also address the repercussions of how regulatory and private capital changes have affected the flow of money to lower middle-market companies. “The combination of increasing regulatory constraints on uncollateralized loans by banks and increasing sizes of private equity funds continues to leave a capital void for many successful private companies, especially those between $10 million and $30 million in annual revenue,” said Phlegar, who has served as a strategic advisor to companies on such issues. “We established Oxer to fill that void with flexible and efficient capital solutions similar to those available to larger private and public companies. We’re excited and proud to have launched Oxer so we can support these underserved, successful companies and enable their future growth.”