Private Company Composite Index (PCCI) offers Investors Portfolio of Private Companies
Chicago, IL – May 21, 2007 – The Entrex Private Company Index is pleased to announce to investors and companies the creation of the Private Company Composite Index (PCCI): A quarterly yield based investment index focused on a broad base of private companies.
Stephen H. Watkins founder of Entrex and the Private Company Index suggests; “The PCCI provides a diversified basket of private companies for investors. After nearly 2 years of tracking private company's revenue growth we have been able to create a revenue royalty model which allows us to take our Private Company Index tracking methodology (www.privatecompanyindex.com) and transform it over to an investment methodology -- thereby establishing the Private Company Composite Index or PCCI.”
Tom Jurasek who leads the Fund’s company acquisition process suggests: “Our ground rules take into account six different financial criteria per private company which creates a weighted royalty acquisition structure. This provides companies the ability of issuing revenue royalty contracts without the management and oversight hassles of equity transactions – while protecting the investors interests and returns. Equally important is how this simplified investment model offers investors access to high-growth companies, while receiving quarterly income, without having to wait for the smaller companies infamous “liquidity events”.
“These criteria help us establish an income producing alternative investment solution for investors – it opens up a whole new asset category for investors – private companies – with liquidity at the fund level versus the individual company level. Since we established the Private Company Index years ago Investors have been asking how to participate with these companies… who grew 52.5% in 2006 and are running at a 60% growth rate this year” continues Watkins.
“Meridian Capital’s founding multi-million dollar institutional investment commitment has helped us establish the fund” said Jurasek. “But we plan on continuing the investment process through both bulge bracket firms and through private parties.”
For information about the royalty investment criteria please visit the Private Company Index at www.privatecompanyindex.com.
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