A comprehensive guide to the most common questions investors ask—covering our approach, process, and what to expect when investing with us
SMB VIG offers investment opportunities in established, profitable small and medium-sized businesses (SMBs), sourced and led by experienced operators. These deals typically fall into two categories:
We primarily source investment opportunities through our trusted network of independent sponsors and self-funded searchers. This network continues to grow organically through introductions, referrals, and ongoing relationship-building. We also welcome third-party referrals. At SMB VIG, there is no pride of origination—our sole focus is identifying and executing on high-quality opportunities that can deliver superior risk-adjusted returns.
Each transaction is executed through a dedicated Special Purpose Vehicle (SPV), where Limited Partners (LPs) contribute equity capital and receive pro-rata ownership.
Sponsors are required to make meaningful personal capital contributions. Transactions are structured with transparent economics, strong governance, and clear long-term alignment with investor interests.
Investor funds are held in escrow until deal closing. If the transaction does not complete, 100% of committed capital is returned to investors.
Target companies generally have enterprise values between $5 million and $50 million, with EBITDA margins of 10% or higher
Target companies generally have enterprise values between $5 million and $50 million, with EBITDA margins of 10% or higher
No. Investors have complete discretion to participate only in the opportunities that meet their investment preferences.
The minimum investment is $25,000, unless otherwise specified for a specific deal.
Only accredited investors, as defined by the SEC, may participate. This includes individuals who meet at least one of the following:
No. Only U.S. citizens or permanent residents may participate in SBA-financed transactions.
Not at this time. SMB VIG currently serves U.S.-based accredited investors only.
No management fees – we also hate skimming from the top
20% carried interest on profits, subject to a 16% IRR hurdle rate and full catch-up A modest administrative fee, shared across investors, covers SPV setup, maintenance, tax filings, and distributions
We target a 25% IRR or 3X MOIC over a 5 year holding period
Sponsors are rigorously vetted based on:
Only sponsors with demonstrated integrity and strategic clarity are approved to list deals.
Details on our investment selection framework and criteria for exclusions can be found on our page https://smbvig.com/investment-criteria/
Independent Sponsor Deals: 40–60% of acquisition financing is debt
Self-Funded Searcher Deals: 70–90% of financing is typically debt
Yes. After reviewing deal materials, interested investors are invited to attend group Q&A sessions with the sponsor
Submit an allocation request indicating your desired investment amount before the stated deadline.
Sponsors remain actively involved in operating the business, typically serving as CEO, Executive Chair, or strategic advisor to ensure disciplined execution
Deals are fully capitalized at close. If additional capital is required for initiatives like M&A, existing LPs are typically given the right to participate.
Investors receive a Schedule K-1 annually for each SPV, reporting income, losses, and any distributions for tax purposes.
SMB VIG enforces a strict no self-dealing policy and mandates full disclosure of any potential conflicts. All conflicts must be resolved in favor of LPs.
While there are no hard limits, we encourage investors to diversify across multiple deals to manage portfolio risk.
Yes. Accredited investors may invest via entities (e.g., LLCs, trusts), subject to compliance review and documentation.
SMB VIG is a platform built by and for value investors with a shared mission: to identify, evaluate, and invest in overlooked, high-potential small and medium-sized businesses (SMBs) across Main Street America
This website is intended for accredited investors only.
All content on www.smbvig.com is proprietary information of SMB Value Investing Group (“SMB VIG”) and is for informational purposes only.
SMB VIG is not a registered investment adviser, broker-dealer, law firm, or tax advisor. Nothing here constitutes financial, legal, or tax advice, or an offer or solicitation of securities. Private securities are speculative and illiquid investments that carry substantial risk, including the potential loss of all invested capital. Investors should undertake independent due diligence and consult with qualified financial, legal, and tax advisors before making any commitment. SMB VIG LLC is not affiliated with, endorsed by, or associated with any of the companies mentioned on this site. All trademarks are the property of their respective owners.
