SBIA Congratulates Grayhawk Capital and Valesco Industries, SBIC of the Year Award Recipients
May 16, 2022
The U.S. Small Business Administration recognized Valesco Industries and Grayhawk Capital as part of National Small Business Week
May 16, 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 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
Based in Scottsdale, Arizona, the partners of Grayhawk Capital are a seasoned and cohesive management team with 80+ years of collective experience over 10 venture funds. Their superior track record and strong returns are based on a proven investment model of providing Series A funding to dynamic and rapidly growing Software-as-a-Service (SaaS) companies in emerging tech hubs. With its current fund of $76 million, Grayhawk is investing in information technology sectors such as healthcare IT, cloud enterprises, security, enterprise application software, business intelligence, and financial technology. To learn more, 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.