Institutions Commit $650 Million to SBICs Deploying TIGRcubs™
Chicago, IL – Oct. 06, 2009 - Entrex announces it has received institutional capital commitments totaling $650 million to be invested into U.S. small and mid-market companies through the Small Business Administration's SBIC (Small Business Investment Company) program. Existing SBICs have the opportunity to utilize this capital through investment in TIGRcub(TM) securities (Top-line Income Generation Rights Certificates)--a revenue based alternative to traditional equity and mezzanine debt structures typically utilized by the funds.
This capital is being specifically targeted for TIGRcub(TM) investments because of the alignment of investor and issuer benefits provided by the security structure, advantages that are the very foundation of SBIC and SBA investment initiatives and values.
Stephen H. Watkins, CEO of Entrex, developer of the TIGRcub(TM) security, shares his views that this newly dedicated capital, and the opportunities to SBICs for additional equity investment, is coming at just the right time to promote growth in the valuable entrepreneurial sector of the U.S. economy.
"We are in discussions with a number of SBICs, as well as their accounting and legal advisors, as to how to best manage the immediate allocation of funds. What's exciting is that on a leveraged basis these institutional funds represent about $2.6 billion of deployed dollars into the American small and medium-sized business sector."
Watkins adds, "Entrex believes that SBIC entities provide the perfect opportunity for these institutional dollars because investors benefit from leverage capital provided by the SBA while enjoying the monthly or quarterly cash distributions from the TIGRcub(TM) security--an investment structure that is monitored and serviced by one of the largest global financial institutions in banking today."
About Entrex
Entrex is the place to find, research, track, manage and trade securities for entrepreneurial companies. Through the TIGRcub™ security structure, Investors and Issuers are brought together in a Capital Market System that serves both private and public companies. TIGRcubs™ provide Investors with monthly income, liquidity and investment returns that are not based on exit events, or exposed to the volatility of the equity capital markets—all while providing Issuers a non-dilutive capital solution with risk-adjusted pricing simulating either debt or equity structures. Visit the Entrex website.
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