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.
