- Vital – Absolutely necessary, essential
- Capital – Money used for a particular purpose
After 25 years supporting financially under-served small to medium-sized American businesses through discrete private financings, we’ve honed the summary description of our businesses to:
Meaningful Investments – Vital Capital
Last month I addressed what Carofin means by Meaningful Investments. Here I’d like to elaborate a bit on “Vital Capital” and why we believe it’s so important to the American economy.
Each private security offering that Carofin sponsors will determine whether the business raising the funds can survive and, potentially, thrive. At some point in a company’s life, capital is critical to its growth and to the ongoing health of its business – that’s when Carofin provides financing solutions.
There was a time when U.S. small to medium-sized businesses (“SMB”) – those with less than $50 million of annual sales and, generally, with fewer than 500 employees – were financed by a local bank. Those days are largely over…
From a peak of over 29,000 banks in the U.S. in the 1930’s, there are now about 7000. Bigger banks must make bigger loans, overlooking smaller businesses. So, over 30 million business (99.7% of U.S. employers) that currently provide over 60% of new jobs have a challenging time getting financed.
For investors, this represents an opportunity. In a world of low interest rates and volatile public stock markets, you can make well-informed loans and equity investments in the exciting businesses Carofin supports – with the prospect of generating higher investment returns and without the swings of the public securities markets.
We offer unique Direct Private Investments, through debt and equity securities, which make a significant difference in the growth of a business – Vital Capital.