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FOR IMMEDIATE RELEASE: MAY 12, 2008
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California Capital Partners Debt Fund Reaches Out to Underserved Markets
Newport Beach, CA… California Capital Partners, LLC, a venture capital firm focused on small- to medium-sized technology and life sciences companies, invests through an innovative fund, the California Ventures Debt Fund (CalVen), with special emphasis on serving the underserved markets.
Its first investment was in PetMedicus Laboratories, Inc., a specialty pharmaceutical company engaged in the formulation, clinical testing, federal registration, manufacture, and sale of drug products for the companion animal market.
CalCap’s focus on this underserved market has proved to be a good business strategy: PetMedicus, a company located in an economic development zone, retired the two-tranche, 20-month venture debt placement, totaling $1,000,000, which included stock warrants, in just 11 months. As a result, investors in CCI received a distribution earlier than expected.
The CalVen Fund is a $195 million fund with $65 million in participation from LPs and $130 million targeted from SBA matching funds. An SBIC authorization provides for two-to-one leverage to limited partner capital. CalVen is uniquely positioned to take advantage of the growing trend to finance growth companies with debt rather than venture equity. Also, the SBIC structure of the fund can enhance LP returns and create a differentiated partnership.
Glenn Sharpe co-chairs CalCap’s underserved markets committee which consists of professionals on both the East and West Coasts. He is a veteran investment/corporate finance professional with more than 35 years of domestic and international experience. Sharpe has spent the last 28 years executing transactions for Citigroup, Inc. For the past 10 years, Sharpe led the Citigroup Community Development private equity-investing unit. In the role of senior investment officer, he oversaw investment in both non-real estate and real estate private equity funds. Glenn is a recognized authority on investing in Small Business Investment Companies and in investing in private equity to meet CRA goals.
CalCap’s investment activities are located strategically in the major markets for technology and life sciences companies – Los Angeles, Toronto, Silicon Valley, San Diego, New York, and Vancouver. This geographic advantage facilitates deal flow and ensures that most portfolio companies will be within close contact of a CalCap partner.