Named Founder Friendly Investors 2021 & 2022 by Inc.
The U.S. Small Business Administration recognized Valesco Industries and Grayhawk Capital as part of National Small Business Week
May 13, 2022 (Washington, D.C.) – The Small Business Investor Alliance (SBIA), the leading association for lower middle market private equity funds and investors, is pleased to recognize that two of our members – Grayhawk Capital of Scottsdale, AZ, and Valesco Industries of Dallas, TX – have been awarded this year’s Small Business Investment Company (SBIC) of the Year Award by the U.S. Small Business Administration (SBA). Grayhawk Capital was recognized as an Established Manager, and Valesco Industries as an Emerging Manager. Valesco Managing Partner Heather Hubbard is currently the Southern Regional President of SBIA.
“We are extremely proud that Grayhawk Capital and Valesco Industries have been recognized for their strong commitment to investing in American jobs,” said SBIA President Brett Palmer. “The SBIC program has a history of success helping small U.S. businesses access long-term, patient capital, which is critical for growth and job creation.”
Small Business Investment Company (SBIC) of the Year Award – Established Manager
Grayhawk Ventures Fund II, L.P.
Brian N. Burns, Sherman Chu, and Brian S. Smith, Managing Partners
As an SBA licensed SBIC, Grayhawk Capital provides non-control equity to businesses across the United States. The firm, an industry leader, focuses on investing in companies in the business-to-business software-as-a-service (SaaS) space.
“We’re grateful to be a part of the SBIC Program that plays a significant role in creating and sustaining jobs in the small business sector,” said Sherman Chu, Managing Partner and Co-founder of Grayhawk Capital. “It’s rewarding to assist in financing promising small businesses that require capital for their growth, expansion, and modernization.”
Small Business Investment Company (SBIC) of the Year Award – Emerging Manager
Valesco Commerce Street Capital, L.P.
Heather Hubbard and Bud Moore, Managing Partners
Valesco Industries focuses on making majority and minority investments in select growth-oriented small and lower middle-market businesses engaged in manufacturing, value-add distribution, and business services.
“Access to capital is essential for every small business to grow and succeed, and SBICs are often the first institutional capital for small businesses in underserved communities,” said Heather Hubbard. “As an investor, it is particularly rewarding when an investment can make a positive impact for an entire community by helping to create jobs and expand opportunities.”
Over the last five years, SBICs have invested nearly $30 billion in 5,562 domestic small and mid-sized businesses. A recent study by the Library of Congress found that SBIC-backed small businesses created almost 3 million new jobs and supported an additional 6.5 million jobs over a 20-year period. These businesses and jobs continue to succeed independently of SBICs after the investment is completed. Small businesses that received SBIC investments in their early stages include: Federal Express, Apple, Intel, Costco, Tesla, Whole Foods, and Callaway Golf.
About the SBIC Program
The SBIC program is run by the Small Business Administration’s Office of Investment and Innovation and is an investment program designed to increase small business access to venture and private equity capital for growth, production, and modernization. For more than 60 years, SBICs have been providing capital to American small businesses to help them expand their operations and create jobs. Fund management teams that meet the SBA requirements and successfully complete the application process, are able to access low-cost leverage up to two times the private capital they raise. These funds then invest in a portfolio of U.S. small businesses, creating jobs, fostering innovation, and fueling economic growth. To learn more about the SBIC program, visit www.sba.gov/sbic.
About Valesco Industries
Dallas-based Valesco Industries has invested in private and family-owned businesses since 1993. The firm focuses on making control and non-control investments of $5 million to $25 million in companies that have from $15 million to $100 million in revenue, a history of profitability, and at least $3 million of cash flow. Sectors of interest include manufacturing, distribution and business-to-business services. Valesco closed its second fund, Valesco Fund II LP, with $293 million in committed capital in February 2018, and is currently in the process of raising its third SBIC fund. For more information, visit www.valescoind.com.
About Grayhawk Capital
Scottsdale-based Grayhawk Capital is a venture capital firm founded in 1999 that provides capital to outstanding early growth stage companies. The partners of Grayhawk Capital have experience managing 11 venture funds, totaling more than $600 million with a collective 80+ years of experience. Grayhawk invests primarily in B2B disruptive SaaS solutions across a variety of verticals. Recurring sectors include, but are not limited to; Customer Centric Software, Healthcare IT, Cybersecurity, FinTech, Business Productivity and Communications. Grayhawk is actively deploying capital from its third fund and seeks to invest in Early-Growth stage companies with $2MM – $6MM in ARR, capital efficient models, and a $1BN+ global market. For more information, visit www.grayhawkcapital.us.
About the Small Business Investor Alliance (SBIA)
The Small Business Investor Alliance (SBIA) is the premier organization of lower middle market private equity funds and investors. SBIA works on behalf of its members as a tireless advocate for policies that promote competitive markets and robust domestic investment for growing small businesses. SBIA has been playing a pivotal role in promoting the growth and vitality of the private equity industry for over 60 years. For more information, visit www.SBIA.org or call (202) 628-5055.