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Entrex and Arthur Lipper Align to Create $600 Million of Private Company Investment Funds

 

Chicago, IL March 29, 2007 – Entrex, Inc. and Arthur Lipper, both known for innovative concepts in the financial markets, have joined forces to bring a new private company investment vehicle for companies and investors. The “Entrex-Arthur Lipper Royalty Investment Fund #1” is expected to invest  $200M in rapidly growing Entrex private companies - with two more funds planned later in the year.

This fund replaces the typical equity-for-capital investment model. It purchases, from private companies, the right to receive a percent of revenue for an agreed contract period. The model, which is patent pending, is based on a new type of security called a Redeemable Revenue Participation Contract (RRPC) unit.

Investors and companies both benefit from this type of financial instrument.  Investors receive quarterly income through the contract period and companies receive funds to facilitate their growth without ownership dilution—free from investor imposed management advice frequently associated with venture capital and other equity investors.

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