Post by Moon Seeker on Apr 12, 2008 11:25:20 GMT -5
Wells Fargo, Indian tribes to start private equity fund
(Sacramento Bee, The (CA) (KRT) Via Thomson Dialog NewsEdge) Apr. 12--Wells Fargo Bank is teaming with California Indian tribes to start the nation's first private equity fund to be owned and managed primarily by tribal governments.
The fund, called Four Nations Capital Partners LLC, has $15 million in commitments, said Bob Taylor, president of Wells Fargo's Community Development Corp., under whose umbrella the funds will operate.
The Colusa Indian Community of Colusa County and the Rincon Band of Luiseno Indians in San Diego County have each put up $5 million, as has Wells Fargo's CDC. The Sacramento Valley tribe runs the Colusa Casino, about 60 miles north of Sacramento, and the Rincon Band owns Harrah's Resort and Casino in the San Diego County town of Valley Center.
"Gaming has been good for us, but it's a one-trick pony," Vernon Wright, chairman of the Rincon tribe, said in a statement. "That's why we've made economic diversification one of our top priorities."
The Colusa tribe consists of the Cachil Dehe Band of Wintun Indians, farmers of rice, walnuts, almonds and other crops. They opened the Colusa Casino in 1986.
Taylor said Wells Fargo is in talks with several other tribes and that the fund will end up with $25 million to $30 million to invest. He said the bank's tribal customers set out in August 2006 to seek alternative investments.
The fund has a wide latitude in the types of companies it can invest in; almost any industry is considered suitable. It will not, however, invest in startups or early stage businesses, life science or biotech firms, gambling or finance companies.
The fund aims to put about $2.5 million into each company, which must operate in one of 11 Western states.
Taylor said the fund is looking at a small manufacturing company, an audio-visual services firm and a health care company.
"These are basic industries," he said. "I would characterize them as conservative only in the sense that one can understand them."
He also said the fund wants to stay away from high volatility, which often occurs with young biotech and high-tech companies.
To see more of The Sacramento Bee, or to subscribe to the newspaper, go to www.sacbee.com/.
Copyright (c) 2008, The Sacramento Bee, Calif.
Distributed by McClatchy-Tribune Information Services.
For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.
www.tmcnet.com/usubmit/-wells-fargo-indian-tribes-start-private-equity-fund-/2008/04/12/3382896.htm
(Sacramento Bee, The (CA) (KRT) Via Thomson Dialog NewsEdge) Apr. 12--Wells Fargo Bank is teaming with California Indian tribes to start the nation's first private equity fund to be owned and managed primarily by tribal governments.
The fund, called Four Nations Capital Partners LLC, has $15 million in commitments, said Bob Taylor, president of Wells Fargo's Community Development Corp., under whose umbrella the funds will operate.
The Colusa Indian Community of Colusa County and the Rincon Band of Luiseno Indians in San Diego County have each put up $5 million, as has Wells Fargo's CDC. The Sacramento Valley tribe runs the Colusa Casino, about 60 miles north of Sacramento, and the Rincon Band owns Harrah's Resort and Casino in the San Diego County town of Valley Center.
"Gaming has been good for us, but it's a one-trick pony," Vernon Wright, chairman of the Rincon tribe, said in a statement. "That's why we've made economic diversification one of our top priorities."
The Colusa tribe consists of the Cachil Dehe Band of Wintun Indians, farmers of rice, walnuts, almonds and other crops. They opened the Colusa Casino in 1986.
Taylor said Wells Fargo is in talks with several other tribes and that the fund will end up with $25 million to $30 million to invest. He said the bank's tribal customers set out in August 2006 to seek alternative investments.
The fund has a wide latitude in the types of companies it can invest in; almost any industry is considered suitable. It will not, however, invest in startups or early stage businesses, life science or biotech firms, gambling or finance companies.
The fund aims to put about $2.5 million into each company, which must operate in one of 11 Western states.
Taylor said the fund is looking at a small manufacturing company, an audio-visual services firm and a health care company.
"These are basic industries," he said. "I would characterize them as conservative only in the sense that one can understand them."
He also said the fund wants to stay away from high volatility, which often occurs with young biotech and high-tech companies.
To see more of The Sacramento Bee, or to subscribe to the newspaper, go to www.sacbee.com/.
Copyright (c) 2008, The Sacramento Bee, Calif.
Distributed by McClatchy-Tribune Information Services.
For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.
www.tmcnet.com/usubmit/-wells-fargo-indian-tribes-start-private-equity-fund-/2008/04/12/3382896.htm