Mailing Address
NMCC - PO Box 1302
Bernalillo, NM 87004
505.924.2820 Office
866.222.1552 Toll-free
505.213.0333 Fax
E-mail: info@nmccap.org
Charitable Tax I.D. # 20-1798654

Investment Policy Read our complete Investment Policy document .PDF (85 kb) or HTML

Portfolio Structure

Overview

  • The Fund will not invest more than 15% of its capital in any single portfolio company.
  • The average investment will range from $ 250,000 to $ 500,000.
  • Many investments will involve the reservation of follow-on capital ranging between 50% and 100% of the initial investment amount.
  • Approximately 10 to 14 investments will be made by the Fund.
  • The Fund anticipates investing (and reserving) approximately 30% of committed capital in each of the 1st two years after the initial close of the Fund.
  • It is likely that a substantial portion of the investments will be made with other funds or investors who have transactional and/or operational expertise.

Service Area

  • At least 40% of the Fund will be invested in companies outside the Albuquerque, Los Alamos, and Santa Fe metropolitan areas.
  • An emphasis will be placed on providing capital to benefit low and moderate income and disadvantaged communities.

Deal Structures

The Fund will underwrite each transaction individually and will consider an array of equity and equity-linked structures tailored to fit the characteristics of each transaction. These structures include:

  • Purchase of preferred stock
  • Purchase of common stock
  • Issuance of promissory note convertible to preferred stock
  • Debt with warrants

NMCC intends to be an active investor and will maintain an ongoing governance role in all investee companies in which it is the lead investor. Furthermore, it intends to invest considerable resources in helping portfolio companies execute their business plans. It is anticipated that monthly reports will be required from each investee in addition to comprehensive reports required on a quarterly basis.

Exit Strategy

No investment will be made without adoption of a transaction-specific liquidity plan. To the extent possible, NMCC will include an exit mechanism at the front end of the transaction. We expect that we will recover value in our investment through the internal recapitalization of our investee companies in most cases. Ways that this objective could be accomplished include:

  • Repurchase of our interest by the entity from which we acquired it
  • Purchase of our interest by an expanded pool of employee owners
  • Purchase through an ESOP vehicle
  • Merger with another company may be a viable exit mechanism in some cases