Diamond Ventures Funds,LP

DV will operate as a $200 million debenture-type Small Business Investment Company (“SBIC”) licensed by the U.S. Small Business Administration (“SBA”). By raising $100 million in private capital, we will leverage $100 to $150 million of low cost Debentures issued by the SBA. DV will invest in and lend to highly qualified management teams who primarily are veterans, minority and women led located in under-served regions.

We will invest $3-5MM in companies that sale to corporations and government via diversity and set-aside programs. Investments will be opportunistic.

The Fund will focus on minorities, women, and veterans. The Fund will use loans, mezzanine, subordinated debt, and debt structures with equity kickers and PIK. The Fund will invest with equity 20% of the time.

SBA has notified DV that will it will be on the agenda to be licensed in December 2013.

Financial description

By using senior and subordinated debt and mezzanine capital, Diamond will partner with outstanding management teams to enhance value by using our vast relationships, board governance, equity kickers, enhancing cash flow to emphasizing growth and near term impact.
The businesses targeted for investment will have a significant percentage of their equity owned by racial or ethnic minorities, veterans and/or be located in, or hiring from, low- and moderate-income or ethnic communities. The Fund’s intends to finance ethnic minorities and veterans who conduct, or potentially could conduct, substantial business with the U.S. government and corporations using preferential purchase programs, GSA schedules, 8(A) provisions, and diversity commitments such as Walmart’s commitment to spend $20 billion over five years in this sector. Ideally, the Fund will coalesce its strategy around “clusters” of companies and customers to augment its strategy.
The Principals will pursue a value-based investing strategy. They will orchestrate a hands-on, value-added approach to improving the underlying business, setting a portfolio company on a more rapid growth trajectory and often guiding a business to market leadership. In addition, the Principals have significant experience working with management to consummate strategic acquisitions and alliances, including the formation of international joint ventures with strategic customers and suppliers.