CAPCO Programs

$11 million was raised by Advantage Capital Partners for the Washington, DC CAPCO fund.  Advantage Capital says it looks forward to investing this money into a small DC business:

Advantage Capital Partners has raised approximately $11 million for a Washington, D.C., Certified Capital Company (CAPCO) fund. The fund will invest in qualified small businesses located in the District.

“We look forward to investing in promising companies with solid growth prospects, companies that will create jobs and increase demand for goods and services from other local businesses,” said Steven T. Stull, Advantage’s managing partner. “Experience in several states around the nation have shown that CAPCO investments attract additional venture capital dollars from outside the area to support entrepreneurs and their businesses, resulting in a more diverse and stronger local economy.”

To manage the new fund, Advantage has established an office in the District led by Douglas R. Beekman, vice president. Beekman, who joined Advantage’s Tampa office in 2000, has been involved in the management of the Florida and Hawaii investment portfolios. He has extensive experience in the merger and acquisition arena and was previously Manager Corporate Development for Danaher Corporation. Beekman has an MBA from the J.L. Kellogg Graduate School of Management at Northwestern University and a bachelor’s degree in government from Dartmouth College.

Beekman’s office is located at 3128 M Street Northwest, Suite 310, Washington, D.C. 20007. He also may be reached by telephone at 202-337-0034.

Qualifications for businesses seeking investment from the CAPCOfunds include the following, Beekman said:

• Capital needs of $100,000 or more.
• Company headquarters must be located within the District of Columbia.
• At least 75 percent of the companys employees must work in the District.
• At least 25 percent of the companys employees must be legal residents of the District.
• The business also must qualify under the U.S. Small Business Administrations SBA loan eligibility requirements.

“Small businesses are the source of most new jobs in todays economy, and the CAPCO program will encourage investment in our community\’s high-potential companies,” Beekman said. “CAPCO programs reflect the impact public-private partnerships can have on state economies. In Louisiana, according to figures from the Growth Capital Alliance, CAPCOs have invested more than $340 million and attracted nearly $1.2 billion in additional investment in 182 Louisiana companies over the years – resulting in more than 7,500 jobs created or retained in the state.

“In Missouri, more than $90 million has been invested in 32 companies, resulting in more than $2 billion additional investment, nearly 2,000 jobs, $500 million in personal income growth and $180 million in incremental state and local taxes,” Beekman added. “In Colorado, companies receiving CAPCO investments account for more than 600 jobs in the first 18 months of the program, during the worst period of Colorado job losses since the 1930s.”

Advantage Capital Partners is a private equity firm focused on investing in promising companies in connection with federal, state and local economic development efforts. With offices in New York, New Orleans, St. Louis and other cities, in addition to Washington, D.C., Advantage has raised $650 million in institutional private equity since 1992 and invested in companies located in geographic areas where little venture capital or venture capital infrastructure exists — or where capital is only available for mature companies. For more information about Advantage Capital, visit www.advantagecap.com.

In addition, Advantage participates in the U.S. Treasury Department’s New Markets Tax Credit program, which is designed to stimulate growth and job creation in low-income neighborhoods throughout the United States by providing much-needed investment capital, financial counseling and other services. Advantage received a $50 million allocation in the 2005 round, announced May 11, and a $110 million allocation in the 2003 round. To date, Advantage has raised more than $55 million through the New Markets program for investment in low-income communities.

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