GrowthCap announced today that it has extended its private equity platform to include investment opportunities for ultra high net worth individuals. “We saw a large gap in the private investment market.” said GrowthCap CEO RJ Lumba. “The market offers multiple attractive avenues for individuals to invest in seed stage or angel opportunities, but there are very limited means for individuals to access direct investments in established, cash-flowing private enterprises, known as growth equity investments.” This expansion will also benefit companies looking to raise capital from a diverse retail investor base while simultaneously maintaining a clean cap table as the GrowthCap investment process adds a single shareholder entity to a company’s ownership structure and optimizes ongoing shareholder administration.
Through GrowthCap, individual investors can now invest in a variety of highly-curated private companies. GrowthCap performs thorough due diligence prior to approving a company for its platform. “We take deal quality very seriously. We are intensely focused on providing investors with opportunities to earn outsized returns within a defined three-to-five year time frame,” says Lumba. Companies are evaluated based on management team track record, historical financial performance, projected growth, market dynamics, competitive advantages, and operational strength among other key metrics.
Growth equity opportunities have continued to receive increased attention among the investment community at large. Cambridge Associates recently named it an asset class and calculated returns of 15.6% per annum over the three-year period ending December 2012, which was equivalent to returns earned on leveraged buyouts and materially higher than the 11.4% earned on venture capital investments.
GrowthCap, which launched in January, has seen strong demand from private company CEOs. “In our first month, we spoke with over 60 CEOs and evaluated over $800 million worth of transactions. We will be adding $25M to $35M of live deals to the platform in the next 30 days,” says Lumba. Initial opportunities include one of the fastest growing brands in the health and fitness space (the company’s revenues are growing at 22% per month) and a financial research and media company founded by former successful hedge fund managers, amongst others.
GrowthCap also announces a key addition to its organization. Jared Talisman joins as Managing Director and to assist in leading deal evaluation, structuring and execution. He brings over 12 years of transaction experience having worked at top tier firms including North Sea Partners, Lehman Brothers, Credit Suisse and Donaldson Lufkin & Jenrette. In addition, Jason Tagler, a Partner at Camden Partners, and Gus Warren, a venture partner at FirstMark Capital and COO of Disconnect, have joined as advisory board members.
GrowthCap connects established private companies to family offices, ultra high net worth individuals and select institutional investors. Led by a team of seasoned investment banking and technology professionals who have developed the optimal capital raising process, GrowthCap combines financial technology and highly experienced professional deal execution. Its technology enables companies to quickly identify relevant investors, coordinate a confidential and discreet deal process, and receive active guidance and support from a GrowthCap professional.
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