Lone Star New Markets LP ("LSNM"), which raised $25 million in private equity in 2006, provides investment capital for companies located in underserved communities, will co-invest with Lone Star Growth Capital ("LSGC"), a $25 million fund comprised of non-taxable investors. LSNM and LSGC will make $1 million -$10 million equity-oriented investments in private middle market Texas based companies. LSNM investors will receive tax credits that equate to an 8% annual return on invested capital as part of the $15 billion New Markets Tax Credit Program, enacted in 2000. LS Growth investors will receive an 8% - 10% preferred coupon on invested capital. All investments will be in companies domiciled in low to moderate income areas of Texas.
|
 |