LongWater Capital Solutions Hits Milestone: New Fund Draws Capital from 40% First-Time Investors

LongWater Capital, a private equity firm with a significant presence in St. Louis, hits a major milestone. The firm successfully completed the final close of its inaugural Small Business Investment Company (SBIC) fund, raising a total of $262.5 million and exceeding its original fundraising target. Operating under LongWater’s Capital Solutions platform—which is led by a St. Louis-based team—the fund functions as a public-private partnership, combining commitments from private investors with government-backed leverage provided through the U.S. Small Business Administration (SBA).

The fund is actively targeting lower middle-market companies across the United States, providing flexible financing through direct private credit and non-control equity investments. LongWater has already begun deploying this capital, having invested in eight companies nationwide to date. The capital raise attracted a highly diverse group of institutional investors, banks, insurance companies, and family offices, with approximately 40% of the participants representing first-time investors in the federal SBIC program.