Prime One Capital Reports Interest Grows in Development Capital

May 5, 2010 - PRLog -- Leveraged buyout and venture capital groups are focusing on companies that find it hard to invest in new areas by offering development or expansion capital.  

With development capital, the financial sponsor often takes a minority position and directorship in an established business and provides the capital and experience for expansion.

Firms such as Prime One Capital have moved away from venture capital investment to concentrate on providing firms with development finance.

J. Peterschmidt, a managing director of Prime One Capital, said it often sourced companies where the founder was reaching the limits of their management ability and preparing to sell equity to develop.

He said: “The power dynamic between investor and founder is different at this stage than in a start-up or divisional buyout, as the entrepreneur is self-confident, having proven management ability.”

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Prime One Capital assists clients with traditional commercial financing request but our specialty is working on real estate and commercial transactions that require creative structuring.