Two California Tribes, Wells Fargo Form $25 Million Private Equity Fund
February 25 2008 - 12:26PM
PR Newswire (US)
SAN FRANCISCO, Feb. 25 /PRNewswire/ -- Wells Fargo Community
Development Corporation (CDC), the Colusa Indian Tribe and the
Rincon Indian Tribe today said they have formed First Nations
Capital Partners, LLC (FNCP), a specialized $25 million private
equity fund. FNCP is the first private equity fund in the U.S. with
tribal governments as its primary investors, owners and managers.
Two California tribes -- the Colusa Indian Community of Colusa, a
gaming and farming tribe near Sacramento; and the Rincon Band of
Luiseno Indians, owners of Harrah's Resort and Casino in Valley
Center -- in conjunction with Wells Fargo CDC, have agreed to
become the lead investors in the fund. Each has committed to invest
up to $5 million in the fund over five years. Other Indian tribes
and Nations are expected to commit $1 million to $5 million each,
while four to six individual investors are joining the tribes with
a maximum investment of $250,000 each. The majority of the FNCP
capital contributors are Indian tribes that want to diversify their
investment portfolios in different industries and geographic
regions. FNCP will seek to preserve investors' capital while
investing in profitable operating companies with experienced
management in niche markets. "Gaming has been good for us, but it's
a one-trick pony," said Vernon Wright, chairman of Rincon. "That's
why we've made economic diversification one of our top priorities."
FNCP intends to make eight to 10 individual investments, averaging
$2 million to $3 million each, in a variety of emerging, profitable
businesses with sales under $50 million and a minimum of $1 million
of earnings before interest in 11 western states. FNCP will seek to
partner with other experienced fund investors and be a competitive
acquirer. "Our goal of putting visionary capital to work for our
investors and portfolio companies is designed to create
partnerships between Tribal Nations and the greater business
community," said John Upshur, managing director of FNCP. "We're
happy to partner with these Tribes to bring capital to a variety of
small businesses," said Bob Taylor, president of Wells Fargo
Community Development Corporation. "It brings new investment
opportunities to tribes that want to expand their business
interests." The Rincon Band of Luiseno Indians of Valley Center,
California, own Harrah's Resort and Casino with 667 guest rooms,
spa and up-scale dinning near San Diego. The Colusa Indian
Community Council is the governing body of the Cachil Dehe Band of
Wintun Indians. The tribe owns and operates the Colusa Casino
Resort near Sacramento, California, and is a successful farming
operator-raising crops such as rice, walnuts and almonds. Wells
Fargo Community Development Corporation, a wholly owned subsidiary
of Wells Fargo & Co. and manages CRA and community development
investments. Wells Fargo & Company is a diversified financial
services company with $575 billion in assets, providing banking,
insurance, investments, mortgage and consumer finance through
almost 6,000 stores and the internet (http://wellsfargo.com/)
across North America and internationally. Wells Fargo Bank, N.A. is
the only bank in the U.S., and one of only two banks worldwide, to
have the highest credit rating from both Moody's Investors Service,
"Aaa," and Standard & Poor's Ratings Services, "AAA."
DATASOURCE: Wells Fargo Community Development Corporation CONTACT:
Media, Susan Stanley of Wells Fargo, +1-415-947-3994 Web site:
http://www.wellsfargo.com/
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