We think everyone has the right to be involved in the success of companies and participate in capital markets. Montcalm Capital is creating a new investment paradigm that allows more people to engage with companies they care about.
SAN FRANCISCO (PRWEB) December 13, 2018
Montcalm Capital, a new private investment firm, is launching to generate value and well-being for people and the planet through innovative capital solutions.
The genesis of Montcalm Capital began with Holly Ruxin, Founder of Montcalm TCR, a registered investment adviser that provides holistic private wealth management services through deep engagement and authentic relationships. After her 20-year career in investments and wealth management, Ruxin was working to fulfill her vision of diversified, transparent and customized portfolios for her clients. She discovered a need for more private investments with a broader range of terms as well as more opportunities for clients seeking investments in companies solving some of the world’s most pressing environmental and social problems. Accessing these opportunities required high minimum investments that became a barrier for the majority of investors.
According to Ruxin, “Currently, institutions and the wealthy hold nearly all access to high caliber private investments. We think everyone has the right to be involved in the success of companies and participate in capital markets. Montcalm Capital is creating a new investment paradigm that allows more people to engage with companies they care about through the launch of our first fund.”
In addition to meeting the needs of a wider pool of investors, Ruxin recognized that many companies pursuing impactful strategies were limited in their financing options to dilutive equity vehicles with significant governance oversight and restrictions.
David Cooper, a 25-year veteran of the investment industry, was equally frustrated by the existing financing structures that didn’t align well with the real capital needs of impact-oriented companies. Cooper and Ruxin joined together to bring their first deal to market and Montcalm Capital was created.
The firm’s first fund, the Montcalm Capital Fund I LP, will provide inspiring companies with flexible capital at lower costs and for longer terms, without the equity dilution or restrictive governance associated with traditional venture financing. Investors in the fund also benefit, with a no management fee, no carry structure and regular payment schedule, while earning an expected return based on a portfolio company’s sustainable cash flow. Investors can choose to take part in the individual fund investments that best align with their personal values and goals.
Montcalm Capital Co-founder Cooper explains, “The venture and private equity model doesn’t serve the impact sector well. Companies generating revenue, with a strong pipeline of future business, should not need to sell 15 to 25 percent of their corporate ownership to fund their growth. We wanted to create a structure where companies could thrive while providing strong and stable returns to investors. We believe that a long-term, attractively priced debt security better serves impactful companies and investors than a typical venture fund.”
Each portfolio company in the fund undergoes rigorous institutional due diligence. The fund’s first investment will be in CLEARAS Water Recovery, the leading provider of sustainable, non-chemical wastewater treatment technologies. This investment creates a win-win scenario where both the fund’s investors and the company can profit while addressing critical environmental challenges.
About Montcalm Capital
Montcalm Capital is a new economy investment firm that generates value and well-being for people and the planet through innovative capital solutions. Montcalm finds and funds inspiring companies that are delivering positive social or environmental impact. Through a new investment paradigm, Montcalm is transforming the flow of capital to provide prosperity for all stakeholders. Montcalm Capital is an affiliate of Montcalm TCR, a registered investment adviser that provides holistic private wealth management services and strives to generate abundance and renewal for clients.
This media release is not an offer to sell securities of any investment fund or a solicitation of offers to buy any such securities. Any decision to invest must be based solely upon the information set forth in the offering documents, regardless of any information investors may have been otherwise furnished, including in this media release. The information in this media release is provided by Montcalm Capital and is believed to be reliable. Opinions, estimates and projections in this media release constitute the current judgment of Montcalm Capital and are subject to change without notice.