Texas-based Alternative Investment Manager Cypress Growth Capital Announces the Closing of Fund II at $50 Million.
Dallas, TX, May 7, 2014
Cypress Growth Capital, an alternative investment management firm headquartered in Dallas, Texas, has closed its second royalty-based growth capital fund, CGC Royalty Investments II, LP. The $50,000,000 fund secured capital commitments from a premier family office investor group, all of whom participated in the firm’s prior royalty-based fund.
Cypress was well positioned to quickly raise the new fund based on its track record of twelve royalty-based investments since 2011 and its market-leading position as the first and most active royalty-based growth capital firm in the United States.
“We are pleased that our prior investors chose to participate in this fund as well,” said Ed Mello, Co-Founder and Managing Director of Cypress Growth Capital. “Our innovative form of capital addresses a compelling market need for emerging, second-stage businesses looking for minimally-dilutive funding in the $1M to $5M range.”
Entrepreneurs are attracted to Cypress’ patient and flexible form of royalty-based growth capital. “We explored multiple funding options and received several offers, ranging from more traditional private equity investments to traditional subordinated debt offerings,” remarked James MacLean, President and CEO of Geoforce, an international provider of track & trace and asset management solutions to the energy industry and a Cypress portfolio company. “Our CFO spent six months evaluating more than fifty possible capital partners. All things considered, the royalty-based growth capital structure was the best choice. Over the last three years, we have spent considerable time with Cypress’ principals and have found their insights and relationships valuable. They are a trusted partner.”