Photo: Iowa Tourism Office
June 22, 2009Contacts:
Bill Van Sant, Stone Arch - 612.817.9783
Mark Huston, Cimarron Capital - 515.249.7525

Iowa Fund of Funds Invests $6M in Venture Firm with Iowa Ties

Stone Arch Capital’s 2nd Fund has “Strong Appetite” for Iowa Investments

June 22, 2009 | DesMoines, IA — The Iowa Capital Investment Corporation announced a commitment of $6 million from the Iowa Fund of Funds to Stone Arch Capital II (SAC II), the second fund managed by Stone Arch Capital. SAC II closed April 30 with final commitments above $170 million.

“We look forward to leveraging Stone Arch’s strengths for Iowa,” said Dennis Murdock, Iowa Capital Investment Corporation Board President. “Iowa businesses can benefit from Stone Arch’s success both with growing companies and navigating generational transfer as founders near retirement age.”

The Minneapolis-based venture firm has past experience operating in Iowa. In 2007, Stone Arch Capital I invested in Des Moines’ Mail Communications Group (MCG). Said MCG CEO Tom Lawrenz, “We looked at a number of financing options, and when it came time to choose, our entire management team picked Stone Arch Capital. It’s been a good thing for both MCG and Iowa.”

According to Stone Arch Operating Partner Bill Van Sant, the firm’s primary focus is investing and holding majority ownership in later-stage companies that offer solid growth potential. One of the firm’s key initiatives is expanding portfolio companies through organic growth, introduction of new products and add-on acquisitions. Mr. Van Sant, an Iowa native with decades of in-state experience, will be the firm’s Iowa representative.

“Our appetite is very strong for future Iowa investments,” noted Mr. Van Sant. “We deploy a multifaceted approach to deal sourcing and have developed strong in-state relationships with a growing number of contacts. We’ll be in Iowa frequently.”

Mr. Van Sant indicated that Stone Arch looks forward to participating in the upcoming Iowa Venture Forum, taking place on October 7, 2009, in Des Moines.

The Iowa Fund of Funds is managed by Cimarron Capital Partners.

About the Iowa Fund of Funds

The Iowa Fund of Funds is a $100 million program organized by the Iowa Capital Investment Corporation (ICIC) and professionally managed by Cimarron Capital Partners LLC. The Iowa Fund of Funds is designed to help build a professional venture capital industry to serve Iowa entrepreneurs.

About the Iowa Capital Investment Corporation (ICIC)

ICIC is the private non-profit organization authorized by Iowa statute to serve as General Partner of the Fund of Funds and provide oversight and guidance to the Fund Manager.

About Cimarron Capital Partners LLC

Cimarron is a leading national investment management firm specializing in regional private equity. The firm serves as Fund Manager of the Iowa Fund of Funds.