SBIC Challenges and Scale Limits

What does it take to build an investment firm outside the traditional private equity model? David Weisburd speaks with Jeff Schwartz about founding Corbel Capital Partners, identifying opportunities in the lower middle market, and why structured capital fills a gap left by banks and large buyout firms. Jeff discusses the operational realities of scaling an investment platform, fundraising challenges, and how market inefficiencies continue to shape strategy selection.

Highlights:

• The market gap that led Jeff to launch Corbel Capital Partners
• Why traditional banks retreated from lower middle market lending
• The difference between growing a firm horizontally versus vertically
• How managing an investment firm differs from being an investor
• Fundraising challenges for emerging and mid-sized managers
• Using multiple strategies without outgrowing a core market focus
• The role of SBIC leverage in enhancing return profiles
• Why special situations investing is increasingly attractive
• Aligning incentives across teams and strategies

Guest Bio:

Jeff Schwartz is the Founder and Managing Partner of Corbel Capital Partners, a private investment firm focused on structured capital solutions for lower middle market businesses. He is a senior private equity investment professional with extensive experience raising capital and executing leveraged buyouts, distressed debt-for-control investments, and structured equity transactions across multiple industries, with a focus on consumer products and retail, specialty manufacturing, and business services. Prior to founding Corbel in 2014, Jeff held senior roles at Ares Management.

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Sponsor:

AlphaSense is the AI-powered market intelligence platform trusted by 85% of the S&P 100, helping investment professionals make faster, more confident, data-driven decisions. Built for hedge funds, asset allocators, private venture capital firms, and investment bankers, AlphaSense uses advanced AI and powerful search across premium proprietary content to surface the insights that matter most—before the market moves. Elevate your research and stay ahead of the competition. Visit https://www.alpha-sense.com/howiinvest/ to learn more.

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Stay Connected with Jeff Schwartz:

LinkedIn:https://www.linkedin.com/in/jeff-schwartz-corbel-capital

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Disclaimer:

This podcast is for informational purposes only and does not constitute investment, financial, legal, or tax advice. Nothing in this episode should be interpreted as an offer to buy or sell any securities or to participate in any investment strategy. All opinions expressed by the host and guests are their own and do not represent the views of Weisburd Capital. Participants may hold positions or have financial interests in the companies, funds, or investments discussed. Any references to specific investments are for illustrative purposes only. Investing involves risk, including the potential loss of capital. Past performance is not indicative of future results, and any forward-looking statements are subject to risks and uncertainties. Any third-party data or opinions have not been independently verified. Listeners should conduct their own research and consult their own advisors before making any investment decisions.

(0:00) Introduction (1:30) Building a new investment firm and Transition from player to manager (7:11) Building investor base and Scaling the team (11:34) Recruiting, retention, and Leveraging SBIC capital (18:46) Current market interests and Special situations competency (23:26) Insights from Ares to Corbel and Building relationships in distressed markets (25:39) Delivering capital on a timely basis and Accelerating success (27:43) Closing remarks