$FRTD - G3 -We are a publicly held holding company that invests its equity in debt and equity transactions that meet a specific criteria.
Our current holdings are valued at over $63 million with revenue sharing agreements totaling approximately $9 million in annual revenue.
We have over $700 million in pending business for the first two quarters of 2014.
We fund companies that are looking for capital if they need it for:
1. Expansion
2. Debt Reduction
3. Project Finance
4. MBO/LBO
5. Public Offering
6. Up-listing
7. Investor Communications
In Q3 2013, we acquired the majority interest in Principal Mortgage Fund (PFM) and Principal Structure Fund (PSF). Both funds have elected to be treated as business development companies (BDC)
WHAT IS A BDC?
A BUSINESS DEVELOPMENT COMPANY
PURSUANT TO THE SMALL BUSINESS INVESTMENT INCENTIVE ACT OF 1980 ("BDC ACT"), CONGRESS ESTABLISHED BUSINESS DEVELOPMENT COMPANIES UNDER THE INVESTMENT COMPANY ACT OF 1940, AS AMENDED ("INVESTMENT COMPANY ACT") DESIGNED TO PROVIDE CAPITAL TO MOSTLY PRIVATE COMPANIES, CERTAIN OTHER DESIGNATED COMPANIES AND FINANCIALLY TROUBLED COMPANIES LACKING ACCESS TO PUBLIC CAPITAL MARKETS, FINANCIAL AND OPERATIONAL MANAGEMENT EXPERTISE AND MISCELLANEOUS FORMS OF TRADITIONAL EQUITY AND DEBT CAPITAL. BDC'S SERVE AS PUBLICALLY-TRADED, PRIVATE EQUITY FUNDS. BDC'S ARE EXCELLENT VEHICLES TO RAISE ALTERNATIVE AND VENTURE CAPITAL; FOR EXAMPLE,BDC'S MAY RAISE UP TO $ 5 MILLION DOLLARS EACH YEAR SELLING NON-REGISTERED N0N-RESTRICTED SHARES IN REGULATION E OFFERINGS PURSUANT TO AN OFFERING CIRCULAR.
BDC'S MAY ALSO RAISE EQUITY CAPITAL THROUGH REGULATION D PRIVATE PLACEMENTS AND A REGISTERED OFFERING UNDER A FORM N-2 REGISTRATION STATEMENT, UNDER THE SECURITIES ACT IF 1933, AS AMENEDED ("SECURITIES ACT").
ONE SOURCE THAT PROVIDES ALTERNATIVE CAPITAL IN THESE TURBULENT TIMES IS THE BUSINESS DEVELOPMENT COMPANY ("BDC").
WHEN LOOKING FOR PROSPECTIVE SMALL BUSINESS, A BDC DOES NOT INVEST IN JUST ANY COMPANY, ITS' GOAL IS TO INVEST IN AND PROVIDE GUIDANCE TO THOSE THAT WILL ONE DAY GROW LARGE AND INCREASE SHAREHOLDER VALUE.
