Performance Data
This section provides information on the performance of SBICs, as an asset class, against peer groups as well as the benefits of SBA leverage to the returns to private investors.
Benchmarking SBICs:
The following table demonstrates that SBICs as an asset class have generally performed in line with several peer groups:
| Vintage Year | Pooled Returns to SBIC Private Investors | Pooled IRR - US Small Buyout Funds (Preqin) | Pooled IRR - US Mezzanine Funds (Preqin) | Pooled IRR - Small Buyout, Medium Buyout & Mezzanine Funds (ThomsonOne) |
|---|---|---|---|---|
| 1998 | -3.1% | 9.2% | 5.4% | 7.3% |
| 1999 | 16.7% | 3.5% | 6.2% | 3.5% |
| 2000 | 15.2% | 15.1% | 14.0% | 7.8% |
| 2001 | 11.2% | 21.6% | 25.8% | 7.6% |
| 2002 | 17.8% | 14.9% | 11.5% | 7.7% |
| 2003 | 13.8% | 15.4% | 11.4% | 6.6% |
| 2004 | 8.1% | 16.6% | 7.0% | 9.9% |
| 2005 | 7.1% | 4.9% | 8.0% | 4.3% |
| '06-'08 | 0.8% | 7.2% | 8.6% | 9.8% |
Footnotes:
- Data for 2006 through 2008 is presented as an arithmetic mean of pooled IRRs for those years
- SBIC Vintage Year determined by date of license. Data as of 12/31/10 ; Returns calculated based on information collected as part of annual financial statement submissions to SBA; Returns include an assumed 20% carried interest payment to the GP after LPs have received distributions equal to paid-in capital.
- Source for benchmark data: Preqin Ltd; Data includes “Most up-to-date” figures and was accessed 12/12/11; Benchmark may include some funds licensed as SBICs
- Source for benchmark data: Thomson Reuters; Data as of 12/31/10. Data includes US funds from $5M to $500M categorized as Small Buyout, Medium Buyout, or Mezzanine.
Benefits of Leverage for Private Investors:
| Vintage Year | Pooled Unlevered Net IRR | Pooled Levered Net IRR | Spread |
|---|---|---|---|
| 1999 | 11% | 16% | 5% |
| 2000 | 11% | 16% | 5% |
| 2001 | 9% | 13% | 4% |
| 2002 | 11% | 17% | 6% |
| 2003 | 9% | 12% | 3% |
SBIC Spotlight:
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