If you are trying to raise equity for an SBA-backed business acquisition, stop talking to institutional funds. They are fundamentally structurally broken for these deals. Here is why. Most micro-funds or family offices investing "other people's money" require two things that will instantly kill an SBA 7(a) deal: Redemption Rights and hard Hurdle Rates with compounding preferred returns. Under strict SBA guidelines, equity injection must be true equity. If your investor's operating agreement dictates that the company must buy them out in 5 years (redemption rights), or creates a debt-like obligation that threatens the stability of the business, the SBA underwriters will flag it as disguised debt. Who is OUT: Institutional fund managers who need to check a box for their LPs. Who is IN: High-net-worth individual private investors. People who understand the long game, want yield, and are aligned with your operational timeline. Stop pitching the wrong capital. Look for individuals, not institutions. Seek Alignment - value-add and experience - Is the person/people writing you a check going to be there when things get hard? Will they answer the phone when you need them? Have they lived the path you're walking?