Cedar Rapids-based private equity firm AAVIN Equity Advisors closed a third round of funding with total capital commitments of $63 million and a license to operate as a Small Business Investment Company (SBIC).
The funds generated in the funding round will go toward investing in U.S.-based lower middle market companies with less than $50 million of revenues. According to the release, AAVIN III will draw “2:1 leverage from the SBIC program, taking total investable capital to $189 million.”
AAVIN III is more than double the size of AAVIN’s previous lower middle market fund, which closed in 2015 with total investable capital of $86 million. It is the group’s 12th private fund and seventh
AAVIN specializes in late-stage and expansion-stage financings for companies seeking less than $10 million, with most requesting around $5 million. Further criteria on AAVIN’s website shows clients must have between $1 million to $6 million in earnings before interest, taxes and depreciation (EBITDA), 10% return on EBITDA margins, a strong track record of financial performance and identified growth options
Their website lists a portfolio including clients like Dynamic Restaurant Holdings (which includes brands like Happy Joe’s Pizza and Tony Saccos), Greenleaf Book Group, FedEx Ground, Brown Industries and more.
