Global Media Fund Commits $10 Million to the Principal Guaranteed Private Company Composite Index
Chicago, IL – July 11, 2007 – The Private Company Composite Index, Inc., a newly formed investment vehicle which has registered with the SEC (reserved NASDAQ: PCCI), received a $10M commitment from Global Media Fund, Inc, (GMF) today—to support the PCCI with media and marketing efforts.
The PCCI initiated by Entrex, Inc., plans to purchase royalty contracts from a diversified basket of approximately 1000 private companies on a formulaic basis. Meaning, they will purchase rights to a percentage of the companies’ revenues for a period of 10-50 years. GMF—in exchange for an equity stake in the PCCI—will employ $10,000,000 worth of various media including print, television, radio and online services to inform the private business community about the entity.
Entrex Founder and CEO, Stephen H. Watkins, shares his views on the value of this GMF investment, “Global Media sees how this initiative could bring the best of the best …what Dow Jones touted as the “Blue Chip Private Companies” …together. Global Media now has access to this huge portfolio, to potentially offer media deals to each of them.”
“By offering principal protection through US Treasuries, we’re able to then take a portion of the funds and purchase revenue royalties from the private companies in the portfolio. This, potentially, offers alternative investment-type returns from the revenue royalty contracts while employing the US Treasuries to protect 100% of the invested principal. In other words, companies get capital while we protect our principal.”
Entrex provides the fiscal reporting and valuation foundation for private companies through the research and data supplied by their sponsored organization, the Private Company Index (PCI) (www.privatecompanyindex.com)—a proprietary benchmarking tool used to measure overall performance in the private sector. It’s recognized as the most authoritative source on company growth and private sector performance by practitioners in the financial markets (including investment bankers, broker-dealers, and M & A professionals and accounting firms).
Watkins explains, “The PCI shows a significant increase since its launch in Q3 2005. In calendar year 2006 alone, the portfolio’s performance increased by over 52%. Thus far, 2007 reflects growth of 60% from inception point. As businesses saw how being involved in Index’s benefit their position in the financial community – we were called to help create this financial vehicle – and the Private Company Composite Index (PCCI) is the result.”
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