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FOR IMMEDIATE RELEASE: JULY 31, 2009
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ALTERNATIVE INVESTMENT STRATEGIES FOR TURBULENT TIMES
CalCap Partners’ John Nelson Presents Webinar for Wealthy Now Members
Newport Beach, CA… CalCap’s Managing Director John R. Nelson presented a webinar on “Alternative Investment Strategies for Turbulent Times” for the 900 members of Wealthy Now last week.
The challenge of making private investments in the current economy was explored, as was the opportunity for finding premium deals. Statistically, venture investments have performed, on average, better than two times above the Dow Jones Industrial Average over the past two decades. Getting deal flow, pros and cons of going solo vs. using a group approach (angel groups or fund managers), equity vs. debt (or a hybrid), the importance of Intellectual Property, a specialized vs. diversified portfolio, and where to invest in down times also were discussed.
Recently, there have been many published proclamations that the venture capital industry is dead, or that the venture capital model is broken. Perhaps the traditional equity model is not performing as well as it once did, but venture lending is continuing to develop a growing market share of private capital investments. Moreover, current economic conditions have opened a vast opportunity in financing distressed debt placements. Competition for premium deals is at an all-time low, and the inventory of available investment prospects is high.
No doubt that’s why venture debt has grown from only one percent of venture capital deployed in 2001 to approximately seven percent in 2006, 10 percent in 2007, and is expected grow to almost 20 percent in 2010.
There are some reasons for accredited investors to consider venture lending as a viable and attractive alternative investment, according to Nelson. They include:
- Debt is an expanding segment of private capital investing that is still growing
- High velocity of capital; that is, usually under 48 months, or less
- Senior investment position
- Rates of return with interest, fees, and warrants are comparable to composite venture capital
- Risk is collateralized, and has UCC-1 security
California Capital Partners, LLC (“CalCap”) manages venture capital funds focused on entrepreneurial businesses with high growth potential. In addition to funding rapidly growing companies in technology, life sciences, and other targeted industries, CalCap offers key differentiators that benefit its funds’ investors and entrepreneurs alike. CalCap’s leadership consists of venture capitalists that collectively have over 75 years of executive management and investment experience. They have completed over 300 capital transactions totaling over $2 billion over the past 25 years, and have achieved investment returns in the top decile of their industry. CalCap generally invests in product-stage companies with revenues or near-term revenue potential. The common bond between the CalCap managers is the persistent desire to build successful businesses and help skilled, dynamic entrepreneurs.
About Wealthy Now
Wealthy Now is a paid, online digital seminar program providing timely economic information and investment analysis to help its subscribers understand and THRIVE in today's tumultuous financial climate. Members have access to timely information to be able to make decisions on how and where to invest their money. Members hear and learn from multi-millionaires and some of the world's top investment experts and passive income gurus - all people who are making money NOW, not just talking about it. In twice monthly webinars, Wealthy Now presents top experts and their best strategies and advice on the overall market place, trends, investment vehicles, investment strategies and what to do now to profit and prosper. This is the one program that could make THE CRITICAL DIFFERENCE to investors’ financial bottom line! Visit: www.successonline.com.
John R. Nelson is available for an interview about Wealthy Now webinar content.