Brook II is one of only fifteen funds nationwide approved in fiscal 2005
Boston MA – Brook Venture Partners announced today that it has received a license from the Small Business Administration (“SBA”) to operate Brook IIA, a $100 million fund, as a Small Business Investment Company (‘SBIC‘). Brook IIA, a subsidiary of Brook II is one of only fifteen funds nationwide to receive SBIC approval from the federal government in fiscal 2005. Under the terms of the program Brook II will receive up to $70 million of capital from the SBA, supplementing capital it manages for other private and institutional investors.
According to the SBA, SBICs have provided approximately $27 billion in long-term debt and equity growth capital to nearly 90,000 small U.S. companies since 1959. Nationally recognized companies funded by SBICs include: Callaway Golf, Cognex Corp, Intel, Kronos, Lifeline Systems, MicroTouch Systems, NuCo2, Outback Steakhouse, Staples, and Symbol Technologies.
“We are pleased to have received a license. In addition to providing greater funding for growth stage businesses and more jobs in the Northeast and mid-Atlantic states where Brook invests, the program will provide an enhanced return for our investors,” said Walter Beinecke, Partner. “Through Brook II we have already made two investments and expect to complete 15 to 20 more over the next 3-4 years,” added Beinecke.
Investors in Brook II include institutional investors and banks which benefit from the performance associated with venture investments and from CRA benefits related to supporting growing businesses in their communities.
Brook II is positioned to take advantage of the continued growth in both medical technologies and data related IT businesses. “Continued growth in both of these industries is fueling a strong pipeline of attractive investment opportunities. We expect to have an active investment pace going into the fourth quarter” said Brook Partner Fred Morris.
About Brook Venture Partners
Brook Venture Partners provides expansion stage capital through Brook Venture Fund I & II, to information technology and medical technology companies based in the Northeastern United States. Brook is headquartered outside Boston in Wakefield, Massachusetts and has an office in Albany, NY. For more information, contact Ned Williams at 781-295-4000 x203 or visit www.brookventure.com.
About the Small Business Investment Company Program
The Small Business Investment Company (SBIC) program, part of the U.S. Small Business Administration (SBA), was created in 1958 to fill the gap between the availability of venture capital and the needs of small businesses in start-up and growth situations. It’s a little-known fact, but the federal government is the largest single investor in U.S. private equity funds. At the end of FY 2003, SBA had close to $5.5 billion invested in 435 funds, plus another $3.7 billion in available commitments. Together with private capital topping $12 billion, the program totals over $21 billion in capital dedicated to America’s entrepreneurs. Essentially, the SBIC program is a “fund of funds”, meaning that portfolio management and investment decisions are left to qualified private fund managers. For every $10 million in private equity, SBIC licensees are eligible to receive up to a $20 million SBA commitment, substantially enhancing investable capital and prospective portfolio returns.