Independent Bankers Capital (IBCF)

What is Independent Bankers Capital (IBCF)?

Independent Bankers Capital Funds (IBCF) is a licensed Small Business Investment Company (SBIC) that provides equity capital to profitable lower-middle-market manufacturing, distribution, and service companies, primarily in the Southwestern U.S. Established in 2000 by a collaboration that includes Floyd W.

Collins, Barry B.

Conrad, SAMCO Capital Markets, TIB-The Independent BankersBank, and fifty-eight limited partners, predominantly Texas-based independent community banks and financial institutions, the firm has raised considerable capital across various funds for investment. IBCF focuses on financing change of control, recapitalization, and later-stage growth transactions in low or non-technology businesses.

They generally engage in transaction values that do not exceed $25 million, with junior capital requirements of $10 million or less. IBCF's typical initial investment ranges from $2 to $5 million and can provide up to $12 million or lead larger transactions with network of co-investors, including sub debt & equity.

They target companies with revenues between $10 to $50 million and adjusted free cash flow of over $1 million annually.

Their investment criteria include strong financials with EBITDA greater than $2 million and EBITDA margins above 10%. They invest only in U.S.-based companies, favoring industries like Business Services, Aviation, Light Manufacturing, Value-Added Distribution, and avoid real estate, turnarounds, startups, finance firms, and non-U.S. companies.

Their current fund, IBC Fund IV, is a $180M SBIC fund that builds upon their 20+ years of teamwork and successful investment track record. They have an extensive portfolio across various sectors and a dedicated in-house team with extensive experience in private equity and investment banking, and a proven track record of assisting growth strategies for companies.

IBCF operates offices in Dallas, Texas and Little Rock, Arkansas and they also offer flexible capital solutions, often addressing unique market opportunities presented by companies. They avoid smaller investments unless the situations are exceptional and provide customized financial solutions tailored to meet the needs of the businesses they invest in.