News
October 6, 2008
Collateral Guaranty Partners Raises $55 million New Fund
Nashville, TN - Collateral Guaranty Fund, III, LP has closed over $55 million in five year credit guaranty commitments to be invested alongside Collateral Guaranty Partners’ first two funds, Collateral Plus Fund I and Collateral Guaranty Fund. The Fund will provide credit enhancements to emerging and growth stage companies that have experienced difficulty in obtaining traditional bank financing.
In early 2008, due to increasing deal flow, as well as increased interest from existing limited partners, Collateral Guaranty Partners set to raise $50 million for its third fund. Interest levels were greater than anticipated and the offering was oversubscribed. Over 90% of the current limited partners in both of the Company’s first two funds elected to participate in this new fund.
Since 2005 with its first fund, Collateral Guaranty Partner has strived to fully deploy guaranties in senior secured positions and generate measurable monthly returns. The funds supplement current income returns (comparable to a certificate of deposit) for its limited partners with significant gains (via equity interests) through liquidity events the Company plays an active role in guiding. To date, no loan guaranty has been called upon and no cash outlay has been required by the limited partners for their credit guaranties.
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W Squared provides retained technology services to Collateral Guaranty Partners.