Recent News FirstCity Crestone Shares the Turnaround Management Association's Transaction of the Year Award FirstCity Crestone Recapitalizes Cabinet Manufacturer FirstCity Crestone Acquires Short-Line Railroad |
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| News Release
FirstCity Crestone Launched to Target Lower Middle Market May 1, 2007 -- FirstCity Financial Corporation and Crestone Capital announced today the formation of a new joint venture, FirstCity Crestone, LLC. FirstCity Crestone is a special situations investment company with a broad mandate to invest in a variety of assets. Initially, the company will buy or finance distressed debt and companies, originate junior and senior bridge loans, and execute lower middle market buyouts. The company will be based in Greenwood Village and managed by the existing principals of Crestone Capital -- Richard Horrigan, Stephen Schmeltekopf, and Jim Miller, who will devote full time duties to the FirstCity Crestone platform. The company will target transactions of $1-$10 million on a stand alone basis, and seek to partner with other investors on larger transactions. "The formation of FirstCity Crestone marks an exciting and natural expansion of FirstCity's core business of buying loan portfolios," said FirstCity Financial's CEO, Jim Sartain. "Over the past twenty years FirstCity has emerged as the buyer of choice for financial institutions seeking to sell their under-performing assets. Our partnership with Crestone Capital will expand our client base to include undercapitalized companies seeking capital to fund turnarounds, performing companies seeking bridge financing to support growth, and real estate developers and operators seeking capital to develop or reposition property. Rich Horrigan and his staff are seasoned asset originators and we are fortunate to partner with them to diversify and enhance the existing asset sourcing capabilities of FirstCity." Rich Horrigan, Managing Director of Crestone Capital, added, "Crestone Capital is delighted to partner with FirstCity in this new venture. We think there's an underserved need in the lower middle market and by leveraging the resources of FirstCity, we think we can be become the capital provider of choice for turnaround advisors, equity funds, and entrepreneurs." For further information or to discuss a transaction, please call Jim Miller at (720) 407-4401.
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