Enhanced Capital has received an undisclosed investment from Stone Point Capital. Based in New York, Enhanced Capital is a private equity firm that is backed by Vulcan Capital, which manages Paul G. Allen’s investments.
NEW YORK, March 3, 2014 /PRNewswire/ — Enhanced Capital, a New York-based private investment firm, announced today that it has completed a recapitalization transaction with an investment from Stone Point Capital’s $3.5 billion Trident V fund. Enhanced Capital – which is supported by Vulcan Capital, the firm that manages Paul G. Allen’s investments – will use the proceeds from Stone Point’s investment to expand its lower middle market lending platform and tax credit finance business, and increase its impact on low-income communities and other underserved areas.
“We believe that this partnership with Stone Point and Vulcan Capital will expand our capabilities, which will help us grow, but will also benefit our existing investors, portfolio companies, and markets,” said Andrew Paul, Founder and Chairman of Enhanced Capital.
“Stone Point is an excellent strategic fit for Enhanced Capital,” said Michael Korengold, President and CEO of Enhanced Capital. “They bring relationships and experience that will help us strengthen our core mission of lower middle market lending in underserved markets.”
Enhanced Capital provides asset management and advisory services specializing in tax credits and other government incentives. The firm’s investments help stimulate growth, create jobs, increase tax revenues and establish a local investment infrastructure. By financing businesses located in communities historically underserved by outside investment, Enhanced Capital helps states and the federal government achieve economic development objectives. Enhanced Capital was founded in 1999 by Andrew Paul, a former General Partner of Welsh, Carson, Anderson & Stowe. Since 2003, the company has been led by Michael Korengold.
“Enhanced Capital is a real leader in their market, and their focus on both the asset management and commercial finance sectors make them a natural fit for us,” said Charles A. Davis, Chief Executive Officer of Stone Point. “We are excited about partnering with the Enhanced Capital management team and believe that there are a number of initiatives that could result in follow-on investment opportunities.”
About Enhanced Capital
Enhanced Capital, headquartered in New York City, is a diversified private investment firm focused on established small and mid-sized companies overlooked by traditional sources of capital due to location or size. Since 2000, Enhanced Capital’s funds have financed businesses through a variety of state and federal public-private investment programs, including its federal SBIC fund. For more information, visit www.enhancedcapital.com.
About Stone Point Capital
Stone Point Capital LLC is a private equity firm based in Greenwich, Connecticut. Stone Point Capital, the manager of the Trident Funds, has raised more than $10 billion in committed capital to make investments in the global insurance, employee benefits and financial services industries. Stone Point Capital has a 20-year track record of successful investments in its targeted sectors. For more information, visit www.stonepoint.com.
About Vulcan Capital
Vulcan Capital was formed in 2003 and is headquartered in Seattle, Wash. The firm serves as the investment arm of Vulcan Inc., the company founded by Paul G. Allen to manage his philanthropic and business endeavors. The firm invests across all stages of corporate development through start-up and early-stage companies, growth equity, leveraged buyouts, distressed situations, as well as investing in public equities, fixed income and other liquid asset classes. Vulcan Capital’s current portfolio spans a range of industry sectors, including technology, life sciences, energy and natural resources, media and communications, and financial and information services. Current portfolio private companies include Ascentium Capital, Redfin, Audience, Applied Proteomics, Inc., Laureate Education and Pantheon Partners, among others. For more information, visit capital.vulcan.com.