WHAT IS FNCP
First Nations Capital Partners, LLC (FNCP) is the first inter-tribally controlled private equity firm in the United States. Further, it is the first and only fund of its kind to bring together two sovereign Indian nations and a prestigious financial institution. FNCP’s principal anchor investors include the Rincon Band of Luiseno Mission Indians, Colusa Indian Community Council, and Wells Fargo Bank, each of whom committed $5 million to the fund, together with a select group of experienced private equity investors. FNCP’s mission expressed through its motto of “Visionary Capital at Work” is to provide strategic resources, including patient capital, for growing, profitable companies in traditional industries in the eleven Western States. FNCP partners with experienced operating management to insure capital retention and enhancement by achieving the highest possible returns without assuming an inordinate amount of risk.
From inception of the Fund in September of 2008 until September, 2013, FNCP and affiliates invested a total of $12 million in three “platform” investments in various industry sectors. Company sales generally range from a low of $6 million to a high of $10 million with a minimum EBITDA of $1 million and are located in California and the Northwest. FNCP is willing to partner with other experienced fund investors of like mind and will be a competitive acquirer (although not an auction-type bidder) based upon the experience of its management team in operating in this market and the alternative-investing environment.
In 2014, Rincon and Colusa formed a “Pledge Fund” as a follow on to FNCP to which each tribe “committed” a minimum of $5mm and to be managed by Admiral Capital/John H. Upshur. What is a Pledge Fund? A “Pledge Fund” is one whereby the investors who are involved support the effort to search for opportunities thereby getting a ‘look-see” at deals presented to them by the Manager (JHU). They then decide whether or not to participate in the investment on a case by case or “one-off” basis. In effect, they get an “option” or “first right of refusal” to invest or not in return for a fairly nominal annual financial comittment . This contrasts with a “Dedicated” fund (like FNCP I) whereby funds are committed up-front for an extended (10 year)period of time.