Small Business Development Group and C2C Private Investment Company Launch Co-Investment Fund Targeting Lower Middle Market

By Advos

TL;DR

Small Business Development Group's partnership with C2C creates investment opportunities in underserved lower middle market companies, offering potential for significant returns through strategic acquisitions and IPOs.

SBDG and C2C Private Investment Company are launching C2C Private Equity LLC to target companies with $5-50M revenues using equity arbitrage, acquisitions, and operational enhancements.

This collaboration supports underserved small businesses by providing growth capital and expertise, creating jobs and economic opportunities in local communities through sustainable business development.

The IPO Factory model transforms small private companies into public entities on major exchanges through strategic partnerships and innovative financial engineering approaches.

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Small Business Development Group and C2C Private Investment Company Launch Co-Investment Fund Targeting Lower Middle Market

Small Business Development Group, Inc. (OTC: SBDG) and C2C Private Investment Company LLC have announced a strategic collaboration to launch C2C Private Equity LLC, a co-investment fund that will target underserved lower middle market companies. The fund, represented by Winston & Strawn LLP, will focus on businesses with revenues between $5 million and $50 million and enterprise values ranging from $1 million to $20 million.

The partnership represents a significant development in the private equity landscape, specifically addressing the funding gap that often exists for companies in the lower middle market segment. These businesses frequently struggle to access the capital and strategic resources needed for substantial growth, despite representing a crucial component of the broader economy. The fund's strategy involves leveraging equity and public market arbitrage to drive growth through acquisitions, operational enhancements, and strategic exits.

This collaboration directly supports SBDG's "IPO Factory" model, which is designed to scale SME-level businesses and spin off portfolio holdings through initial public offerings and special purpose acquisition company transactions on major exchanges. The model utilizes mergers and acquisitions, management consulting, marketing, and business development to partner with and grow privately owned businesses, with the ultimate goal of taking portfolio companies public on exchanges such as the NYSE or Nasdaq.

The formation of this co-investment fund has important implications for the broader investment community and the small business ecosystem. For investors, it represents a new vehicle for accessing the potentially high-growth lower middle market segment, which has historically been underserved by traditional private equity firms. For small and medium enterprises, it provides an alternative pathway to capital and strategic support that could accelerate their growth trajectories and potentially lead to public market listings.

The strategic importance of this initiative lies in its potential to bridge the funding gap that often prevents promising lower middle market companies from reaching their full potential. By combining SBDG's expertise in scaling businesses through its IPO Factory model with C2C Private Investment Company's investment capabilities, the partnership aims to create value through both operational improvements and strategic market positioning. Additional information about Small Business Development Group can be found at https://sbdg.ai/, while details about the communications platform that distributed this announcement are available at https://www.InvestorWire.com.

The timing of this fund launch comes as many smaller businesses face increased challenges in accessing growth capital amid economic uncertainty. The focus on companies with established revenue streams but limited access to sophisticated financial resources positions the fund to capitalize on market inefficiencies while providing crucial support to businesses that form the backbone of local and regional economies. This approach could potentially create a replicable model for addressing the persistent funding challenges faced by the lower middle market segment.

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Advos

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