Enhanced Capital Partners receives Investment commitment from Vulcan Capital
Capital to Fund Investments in Small Businesses in Underserved Communities
New York, NY, March 31, 2011 – Enhanced Capital Partners, a private investment firm specializing in utilizing state and federal tax credit stimulus programs to finance small and midsized companies in the United States, today announced that it has received an investment commitment from Paul G. Allen’s Vulcan Capital. ECP will use the proceeds to accelerate the pace of its investments through its state-focused and affiliated funds that spur development in low-income communities. The investment includes a $15 million commitment to ECP’s Small Business Investment Company, which intends to raise an additional $60 million of total equity.
ECP’s investments help stimulate growth, create jobs, increase tax revenues and establish a local investment infrastructure. By financing businesses located in communities historically underserved by outside investment, ECP helps states and the federal government achieve economic development objectives. That is particularly important now as state budget constraints mean less funding for creating badly needed jobs.
“Small businesses are the lifeblood of the U.S. economy and the key to long-term job creation and economic growth,” said Geoff McKay, a managing director of Vulcan Capital. “ECP has an exceptional track record of spurring growth of small businesses, and they are uniquely positioned to prudently invest in markets and businesses that are underserved by traditional sources of capital.”
Andrew Paul, Founder and Chairman of ECP’s Board of Directors, said, “We appreciate Vulcan Capital’s confidence in ECP and look forward to their partnership with us.”
Michael Korengold, ECP’s President and CEO added: “Vulcan’s commitment to our SBIC will enable us to diversify our offerings for businesses in underserved communities. In addition, Vulcan will enable us to expand our investment programs at a time when many capital providers are shutting down or scaling back investments in this important sector.”
ECP manages fourteen public-private investment funds in eight states, as well as a Federal New Market Tax Credit investment program aimed at stimulating investment in low-income communities. For example, ECP’s New Market program recently provided $9.6 million to the D.C.-based Capital Area Food Bank. The CAFB, the largest nonprofit hunger and nutrition education resource in the Washington Metropolitan Area, is using the funding to build a facility that will allow it to double the amount of food and household necessities it distributes annually.
ECP’s affiliated SBIC offering recently received a “green light letter” from the SBA and is currently raising equity capital.
About Enhanced Capital Partners
Enhanced Capital Partners, Inc. (www.enhancedcap.com) is a national private investment firm specializing in investments in small and mid-sized companies to further economic development in historically underserved areas. ECP has offices in Connecticut, New York, Alabama, Colorado, Louisiana, Tennessee, Texas and Washington D.C. An affiliate of ECP is a community development entity that has received an aggregate of $100 million of New Markets Tax Credit allocations.
About Vulcan Capital
Vulcan Capital was formed in 2003 and is headquartered in Seattle, WA. The firm serves as the investment arm of Vulcan Inc., the organization founded by Paul G. Allen in 1986 to manage his philanthropic and business endeavors. Vulcan Capital’s investment activities include direct investing in public and private securities as well as indirect investments in traditional and alternative asset classes. Vulcan Capital’s current portfolio spans a range of industry sectors, including media and communications, energy and natural resources, financial and information services, technology, and life sciences. For more information, please visit http://capital.vulcan.com.