Three funds launched with plans of making available capital of over $130 million to small-sized, medium-sized, and high-growth companies in Connecticut state. The revised program of Insurance Reinvestment Tax Credit passed in 2010 formed the fund.
Enhanced Capital Connecticut Fund
Liddy Karter was the managing director of this fund, which raised nearly $30 million. The fund was in two different investment accounts. Kater said that the fund was going to do much in driving more capital specifically in the Connecticut businesses’ hands.
Karter continued saying that her fund, which was initiated by the national asset manager ECP (Enhanced Capital Partners) based in NY, was to identify as well as underwrite investments in equity and debt of equal to $3 million in the firms that were qualified-from the seed-stage to operations that were mature.
They were looking at industries that ranged from healthcare, information technology, and manufacturing to green technology and business services. ECP also concluded its first deal with Hadapt Inc., a software analytics firm based in New Haven, Connecticut; it operates at Science Park.
Advantage Capital Connecticut Partners
Three firms formed the fund – Advantage Capital Partners, based in Missouri in partnership with the Louisiana-based Stonehenge Capital Fund Connecticut, and Ironwood Capital, headquartered in Avon.
Advantage Capital raised $72 million, which was designated to invest in around 25 companies in Connecticut. Stonehenge raised around $35 million. Ironwood Capital and Advantage Capital invested in eight companies based in Connecticut, which included deals with:
• XLerant, Inc., based in Norwalk; a software company providing budget preparation software for corporates.
• The New Haven-based Green Life Guides, LLC, a company that’s operating The Green Bride Guide, which is an online website for ideas of the green wedding, products, and services.
The Advantage Capital Partners’ managing partner, Ryan Brennan said that the fund was representing the first investment that his firm was making in the companies located in Connecticut, and the draw was the program of revised tax credit. Their typical investment forms included government-guaranteed lending, subordinated and senior loans, mezzanine financing, expansion equity, and early stage.
Brennan said that the previous year, they took notice when the bill was passed by the state to attract small businesses money. Ironwood Capital managing director, Victor Budnick, said that its fund could invest $10 million in a company.
So far $7.1 million was their largest commitment. Brennan continued saying that his group was trying to raise $28 million for starting a new fund, which was supposed to launch by the end of that year.