Local Firm Launches Its Third Locally Based Private Equity Fund
Roseville, CA – DCA Partners launched its third private equity fund last week. The Fund comprises capital from various Limited Partners and will be invested in several companies throughout the western United States.
DCA’s previous private equity funds have consistently delivered strong returns across industries and throughout all stages of the economic cycle. DCA Capital Fund I yielded a 250 percent cash-on-cash return, despite having invested all its capital in 2005-2007 just before the Great Recession. Equally impressive, during its investment, no DCA Capital portfolio company ever failed or went out of business.
Private equity as an asset class historically outperforms publicly traded securities and real estate, which is why large endowments, pension funds, and other institutional investors are increasing their allocations toward private equity. It also affords discriminating investors less volatility and increased diversification.
“Investors are struggling to find decent investment options right now,” said Steve Mills, Partner at DCA Partners. “At this stage in the economic cycle, it’s difficult to know where to invest. The real estate market has spiked and is currently filled with uncertainty; the stock market feels frothy to most people right now; and cash deposits are earning paltry interest.”
DCA Fund III has secured a significant portion of its targeted subscriptions from several investors, including well-known companies and banks. This is the first time in more than four years that DCA has accepted new investors into its private equity funds.
“We just closed on our first investment in Fund III, with several additional opportunities already under review,” said Curt Rocca, Managing Partner at DCA Partners. “We take pride in our ability to seek out great companies with strong management teams and help them to realize their business’ full potential.”
DCA deploys capital in a range of strategically selected industries, including manufacturing and distribution, food and agribusiness, business and commercial services, and specialty healthcare. Companies use the capital for buyouts, growth capital, acquisition capital, balance sheet strengthening, debt repayment, and shareholder buyouts. “Both the quality and quantity of deal flow is very encouraging,” said DCA Partner Craig Mitchell. “We are seeing some really interesting companies with some very exciting growth prospect in front of them. I think the timing of this fund is going to be quite good.”
DCA Fund III will benefit from experienced fund managers, led by Partners Steve Mills, Craig Mitchell, and Curt Rocca. Brenden Wilson, Vice President, has provided additional executive-level support since 2017, and Hudson Berkhouse joined the private equity team as an Analyst earlier this year. In addition, DCA is actively hiring three new private equity team members, in order to continue sourcing the best emerging growth companies and providing strategic and financial value to the Fund’s portfolio companies.
About DCA Partners
Based in Sacramento, DCA Partners provides expansion capital to growth-oriented, middle-market businesses in under-served communities across the western United States. The Fund provides promising companies with the capital and expertise needed to successfully expand and extend their businesses.
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26 October 2020