SBIC Funds

This should answer both your question and OP's question. First off, I would think of the SBIC as a financing option for the fund itself. Generally speaking, most funds elect to go through the SBIC process (application, licensing, compliance, etc.) because the SBA (Small Business Administration) would provide fund leverage up to 2x of investor commitments. The fund leverage is at very attractive rates (SBIC Debentures) that are priced off a spread to the 10 year. The Debentures are also guaranteed by the government. I believe the least debenture pricing round was just north of 5%, lower than almost all facilities available for LMM funds at that leverage point. Currently, you see a lot of Private Credit SBIC funds, which have long existed before the recent fever in the Private Credit asset category. From a mgmt fee standpoint, it's typical to charge on the total size of the fund (investor investment + SBIC debentures) It's important to note that SBICs must only invest in small businesses, which is a very large universe. The definition is pretty broad, so you can see even $15M Adj. EBITDA businesses that qualify for "small businesses". I would venture to say most SBICs today are primarily private credit. Now to be clear, many take minority equity stakes along side their debt as well. This isn't to stay you can't have a control buyout SBIC fund, the fund will just need to make sure they are structured in a way that they can service the SBIC debentures that the SBA will sign off on. Additionally, SBIC's are exempt from certain SEC registrations, so there is a benefit with that as well. 

From a day-to-day perspective, the SBIC dynamic doesn't really materially change how a LMM credit shop would operate and/or exit opps, IMO. You might have some additional SBIC compliance type matters, but nothing materially different from a deal process or investment acumen standpoint. Hopefully this is helpful