Native American Capital, LP [NAC] A Private Equity Fund Serving Indian Country

Native American Capital (NAC) is a full-service private equity firm committed to private equity/ venture capital investment and private merchant banking in Indian Country. NAC has two operating divisions: a private equity/venture capital fund (in development) - focused on raising and deploying a large-scale PE/VC fund in Indian Country; and a merchant banking group which undertakes major project financing and consulting activities in specific vertical markets of particular interest to tribes and experienced Indian entrepreneurs. Both divisions are dedicated to promoting high growth business development in Indian Country.

NAC seeks to overcome the traditional barriers that have long impeded access to capital resources in Indian Country. The firm invests in tribally-owned businesses; businesses owned by individual American Indian entrepreneurs; businesses that predominantly serve or benefit Indian populations; tribally-sponsored and affiliated investment vehicles; and, through the provision of technical assistance, ensures the growth, development and profitability of such enterprises. NAC invests in its own Indian Country projects; will co-invest with other financial entities (e.g., Native American-owned banks; tribally-based investment funds; or regional venture/investment funds with a Native American focus). NAC is interested in new or existing business enterprises that offer substantial growth potential; provide social benefits such as employment and infrastructure; demonstrate profitmaking capacity; and potentially provide a substantial return on investment.

The opportunities offered by Indian Country include untapped and little used energy and other resources, pent up demand for capital, favorable tax incentives for development, a large labor market, and strategic partners and resources such as tribal colleges.

Launched in 2004, NAC has received two Native American Technical Assistance Grants from the U.S. Department of the Treasury's Community Development Financial Institutions Fund (CDFI) and was also certified as a Community Development Entity by the Fund. NAC is about to be certified as a Community Development Financial Institution.

The Business Model

NAC has adapted the traditional private equity investment model to the unique challenges and opportunities of Indian Country. These challenges include underdeveloped infrastructure (e.g., lack of public transportation systems), unfamiliarity with Indian Country law, commerce, and opportunities on the part of many potential investors, and high rates of poverty in some parts of Indian Country.

As a social private equity fund, NAC provides a special and historic opportunity for investors to make a significant and positive contribution to the economic life of the nation's native peoples. In exchange for its investment, NAC seeks the traditional roles of a private equity investor. These include a non-majority ownership position in the enterprise and possibly a governance role (e.g., a seat on the corporate board).

NAC works to meet the challenges and capture the opportunities inherent in Indian Country through a business plan operating on two parallel avenues. These avenues are designed to ensure a sustainable pipeline of deals, or deal flow, to and from Indian Country.

One avenue matches worthy projects originating in Indian Country with appropriate capital resources and, as needed, with technical assistance and managerial expertise.

The other deal flow avenue travels in the opposite direction. It matches projects from the non-Native American community with the managerial, workforce, and other resources that are readily available in Indian Country. This avenue offers to non-Native American entities the unique competitive advantages of operating under Native American status while offering Native Americans the opportunities for substantial economic development.

Financial Products

NAC's primary financial products are equity investments and near-equity loans such as subordinated debentures ranging from $250,000 to $4,000,000. NAC provides an array of technical support focusing upon developmental assistance to start-up and growing companies; seeks and grooms top-talent Native American management; incubates high growth technologies; and, offers value added marketing and distribution support to move products beyond tribal communities.

NAC regularly co-invests with other private equity groups and initiates a select number of business development projects in which it takes prominent financing and managerial positions.

Target Industries

NAC will seek product and service business investments in Indian Country, matching intenal and external market demand, unique capital resources, and talent. Target industry areas are:

• IT/Telecommunications - cellular and other
  service, Internet access, line-of-site and value
  added services. IT solutions providers to tribal,
  federal, and state governments, tribal and private
  sector enterprises.
  
  
• Energy production and distribution. Renewable
  resources, co-generation, and alternative sources,
  such as wind farming, geo-thermal.
  
  
• Healthcare - medical technologies, products, and
  services that address prevalent health problems in
  Indian Country.
  
  
• Education - distance learning, teaching content,
  telemedicine.
  
  
• Basic Industries - including concrete production,
  ceramics and industrial containers, and wood
  products.
  
  
• Retail Operations – indigenous goods and services
  such as native arts and crafts, organic products,
  and recreational opportunities.
  

Management

• Gavin Clarkson, DBA, JD - Enrolled member/ Choctaw
  Nation of Oklahoma. Manages NAC's investment
  banking operations. Leading authority on Indian business
  development and finance.
  
  
• Walter Hillabrant, PhD - Enrolled member/Citizen
  Potawatomi Nation of Oklahoma. Co-founder of NAC.
  Manages NAC's deal flow/outreach to and from major
  tribal communities throughout the United States. Leading
  authority on tribal economics.
  
  
• Joseph L. Falkson, PhD, MBA - Co-founder of NAC.
  Manages all aspects of its day-to-day operations, as
  well as its merchant banking program. He regularly
  works with tribes and tribal consortia on major, largescale
  business ventures.
  
  
• Marco Rubin, MBA - Manages NAC's venture capital
  and private equity programs. Nationally recognized
  venture capitalist. Has held leadership roles with funds
  recognized by Entrepreneur Magazine as Top 100 VCs
  in 2002, 2003, 2005 and 2006.