The Performance of Small Business Investment Companies
Publication
, Journal Article
Brown, GW; Hu, W; Robinson, DT; Volckmann, WM
Published in: Financial Analysts Journal
January 1, 2026
We survey Small Business Investment Companies (SBICs) to perform a novel analysis of their performance. SBIC funds outperform comparable non-SBIC peers by around 2% to 3% as measured by internal rate of return and about 0.3x to 0.7x as measured by multiple on invested capital, depending on benchmark deployed. To mitigate sample selection bias, we also examine SBICs in the MSCI Private Capital Universe data, which shows similar, but smaller, outperformance. We analyze SBIC funds by fund strategy and amount of leverage utilized to provide a granular view of risk-adjusted performance. We believe this to be the first large-sample analysis of SBIC returns.
Duke Scholars
Published In
Financial Analysts Journal
DOI
ISSN
0015-198X
Publication Date
January 1, 2026
Related Subject Headings
- Finance
- 3502 Banking, finance and investment
- 3501 Accounting, auditing and accountability
- 1502 Banking, Finance and Investment
- 1501 Accounting, Auditing and Accountability
Citation
APA
Chicago
ICMJE
MLA
NLM
Brown, G. W., Hu, W., Robinson, D. T., & Volckmann, W. M. (2026). The Performance of Small Business Investment Companies. Financial Analysts Journal. https://doi.org/10.1080/0015198X.2025.2606027
Brown, G. W., W. Hu, D. T. Robinson, and W. M. Volckmann. “The Performance of Small Business Investment Companies.” Financial Analysts Journal, January 1, 2026. https://doi.org/10.1080/0015198X.2025.2606027.
Brown GW, Hu W, Robinson DT, Volckmann WM. The Performance of Small Business Investment Companies. Financial Analysts Journal. 2026 Jan 1;
Brown, G. W., et al. “The Performance of Small Business Investment Companies.” Financial Analysts Journal, Jan. 2026. Scopus, doi:10.1080/0015198X.2025.2606027.
Brown GW, Hu W, Robinson DT, Volckmann WM. The Performance of Small Business Investment Companies. Financial Analysts Journal. 2026 Jan 1;
Published In
Financial Analysts Journal
DOI
ISSN
0015-198X
Publication Date
January 1, 2026
Related Subject Headings
- Finance
- 3502 Banking, finance and investment
- 3501 Accounting, auditing and accountability
- 1502 Banking, Finance and Investment
- 1501 Accounting, Auditing and Accountability