SERAPHIM CAPITAL: FOCUS PARTICIPATES IN NEW LONDON-BASED VENTURE FUND TO BACK GROWING UK COMPANIES—A brainchild of FOCUS and the New Vantage Group, a new joint-venture partnership, NVG/FOCUS working through Seraphim Capital, will provide a soft landing for UK portfolio companies interested in accessing the US market.

In the feature article below, Gerald Turner, a FOCUS Partner, describes how this first-of-its-kind partnership will pave the way toward increased internationalization of early stage venture investing. He also details the many benefits of Seraphim Capital’s participation in the UK Enterprise Capital Fund initiative.

Prior to joining FOCUS, Mr. Turner co-founded and chaired Potomac Capital Group, LLP, and, for over ten years, was active in the MBO/MBI arena in the UK. He also was Vice President and Chief Financial Officer and then Executive Vice President, Tarmac America Inc., a $600 million division of UK based Tarmac PLC.

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With over 24 years of experience across many verticals, FOCUS currently has over 30 active transaction engagements in its four offices in Atlanta, Chicago, San Francisco and Washington, DC in the following specific business sectors:

• Asset Managment
• Business Process Outsourcing (multiple assignments)
• Business Services
• Call Center Software and Services
• Construction (Infrastructure)
• Consulting
• Distribution
• Electrical Tranmission Equipment
• Food Processing
• Food Service Management
• Government Contracting (multiple assignments)
• Healthcare Business Services
• Home Automation
• Information Management
• IT Outsourcing (multiple assignments)
• IT Services (multiple assignments)
• Leisure
• Library Services
• Manufacturing
• Maritime Shipping
• Market Research
• Media
• Medical Devices (multiple assignments)
• Medical Diagnostics
• Medical Staffing
• Security
• Software (multiple assignments)
• Sports Apparel
• Transaction Management Services
• Truck/Transport Capital Equipment

Our transaction process provides us with up-to-the-minute market knowledge in these sectors. Are any of them of corporate development interest to you? Give us a call or drop us a note.

Inquiries should be addressed via e-mail to info@focusbankers.com, by telephone to 202-785-1973 or by fax to 202-785-9413.

Diebold, Inc. Acquires Certain Assets of ERAS JV

FOCUS acted as financial advisor to and assisted with the negotiations as the representative of Diebold, Inc. Diebold (NYSE: DBD) is a global leader in providing integrated self-service delivery and security systems and services to the financial services industry. ERAS JV provides state-of-the-art software systems and solutions to the financial services industries, supplying powerful browser-based, cross-platform core data processing systems, and tools. For complete details on this transaction, please click on this link:
www.focusbankers.com/tombstones/deal_Diebold.asp

Seraphim Capital: FOCUS Participates in New London-Based Venture Fund to Back Growing UK Companies

This First-of-its-Kind Partnership Will Lead To Increased Internationalization of Early Stage Venture Investing

By Gerald Turner, Partner, FOCUS Enterprises, Inc.

A new joint-venture partnership, NVG/FOCUS the brainchild of FOCUS Enterprises, Inc. and the New Vantage Group, Vienna, VA is part of a winning consortium, Seraphim Capital, which has been awarded one of four slots in the UK Enterprise Capital Fund (ECF) initiative. ECFs invest a combination of public and private money (2:1 leverage) in small high-growth businesses seeking up to £2 million of equity finance.

A Winning Consortium--Seraphim Capital Wins One of Four Slots in UK Enterprise Capital Fund Initiative with $56M to Invest

The initiative, a public/private partnership, is designed to fill an “equity funding gap” for UK firms that are up and running, but have not yet achieved profitability and are finding it difficult to obtain growth capital. NVG/FOCUS is the only US partner in the country-wide program initiated by the UK Treasury and developed by the Department of Trade and Industry (DTI).

Seraphim Capital is led by a syndicate of business angel groups across the UK, including Archangel Informal Investment (Edinburgh), Advantage Business Angels (Birmingham), plus Pi Capital and London Seed Capital (both of London). Participating corporate venture groups include Greater London Enterprise, General Capital Finance, and The Summit Group.

The £30m co-investment fund (about $56M at today’s exchange rate) will invest alongside leading business angels and other private investors, focusing on investments in companies throughout the UK. Seraphim Capital aims to grow these investments in the US with the help of FOCUS and NVG.

Marshall Graham, FOCUS Chairman, said “We are delighted to have been chosen from among so many strong competitors. Seraphim Capital is distinguished by the excellence of the partner group in the UK. Over the next years, we expect to provide a soft landing for portfolio companies intent on accessing the US market. Our participation gives this fund a unique transatlantic dimension, and I anticipate seriously enhanced deal flow for the firm.”

Seraphim Capital Selected in a Competitive Bidding Process

A competitive bidding process for fund managers and business angel groups to run ECFs was launched in July 2005. In September, the DTI received 45 individual bids. An independent panel headed by David Quysner, a distinguished UK venture capitalist, was appointed to evaluate the competing bids and four awards have been made to date.

Seraphim Capital was selected as a winning bidder along with three other non-angel led funds: IQ Capital, Amadeus Seed Capital, and the 21st Century Sustainable Capital Fund. Because the fund is angel-led, it is exempted from compliance with the Financial Services Act 2000, which relieves it of considerable regulatory burden – and associated costs.

Approval is subject to contract, and the funds have up to six months to complete raising the full amount of private capital before opening their doors for business. Each participating fund will be able to make initial equity investments of up to £2 million in individual portfolio companies.

As One of Four Managing Partners, NVG/FOCUS Will Put Any Proposed Investment into a US Context

As one of four managing partners (the others are The Summit Group, Greater London Enterprise, and Pi Capital), NVG/FOCUS will have broad responsibility for the successful operation of the fund. Particular responsibility will be to put any anticipated investment in a US context and to provide assistance to portfolio companies as their growth plans move them towards entry into the US market.

During the summer of 2006, Seraphim Capital will round out its fund-raising and complete documentation with the DTI with the intent of opening the doors to investment in September 2006. Not surprisingly, entrepreneurs already are knocking at the doors.

Seraphim Capital fund will be based in London with headquarters in the offices of London Seed Capital, New City Court, 20 St. Thomas Street, London SE1 9RS. To ensure the highest quality deal flow, the fund will have satellite offices across the UK located in partner offices in Edinburgh, Newcastle, and Birmingham.

To find out more about Seraphim Capital, contact Gerald Turner, FOCUS Partner, in the Washington DC office at 202 470 1972 or via email at gerald.turner@focusbankers.com.

FOCUS Adds a Partner and a Director of Marketing and Business Development in Washington DC Headquarters

FOCUS Enterprises, Inc., an investment banking firm providing merger, acquisition, and corporate finance services to middle market companies is adding two new executives: a Partner, James W. Hawkins, PhD, and a Director of Marketing and Business Development, Karen Kramer. Both Dr. Hawkins and Ms. Kramer will be based in the firm’s Washington DC headquarters.

“Attracting such remarkable talent to the FOCUS team substantially adds depth as we continue our expansion, said Marshall Graham, Chairman of FOCUS. “A biotechnology expert of the caliber of Dr. Hawkins solidly supports our continued success in the sector, and a marketing professional like Ms. Kramer will be a great asset as our firm grows.”

About James (Jim) W. Hawkins

Before joining FOCUS as a Partner, Jim Hawkins, PhD, was President and CEO of five early stage biotechnology companies, and has experience in all major areas of the biopharmaceutical industry including: drug discovery, diagnostics, analytical instrumentation, and specialty reagents and chemicals. Dr. Hawkins also co-founded and served as the Editor-in-Chief of the peer-reviewed scientific journal Antisense Research and Development, organized numerous scientific and business conferences, authored several major industry reports on gene therapy and genomics as well as numerous scientific and industry articles…more

About Karen Kramer

Prior to joining FOCUS as Director of Marketing and Business Development, Ms. Kramer was Director of Marketing for Advanced Solutions International, an international software firm serving the needs of the association and not-for-profit industry. Ms. Kramer spent 15 years helping grow the company from a start-up with $700,000 in revenues to an international company with revenues in excess of $30 million. With 18 years of management, marketing, and business development experience, Ms. Kramer creates and implements regional and national lead generating programs as well as manages all customer-facing marketing activities.…more.

FOCUS Brochure Wins Award of Distinction in Communicator Awards 2006 Print Competition

The Communicator Awards, an international awards competition, looks for companies and individuals whose talent exceeds a high standard of excellence and whose work serves as a benchmark for the industry. There were 5,214 entries from the US and several foreign countries in the Communicator Awards 2006 Print Competition.

The FOCUS brochure, “A Unique Investment Banking Firm,” found at: www.focusbankers.com/publications/brochures.asp, won the Award of Distinction for projects that exceed industry standards in design or communication skills. Approximately 18 percent of entries won this award.
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FOCUS Web Watch: New Home Page Link to News

Now you can directly access the latest press coverage about FOCUS. On the FOCUS Home Page, first go to the right column, and then note the middle box. Click on topics in FOCUS in the News to read the following articles:

• CRAIN’s Chicago Business
• CFO Magazine
• FOCUS Enterprises and New Vantage Group Part of Award Winning Consortium

Some publications may require your registration before accessing an article about FOCUS.

About FOCUS Enterprises, Inc.

Headquartered in Washington DC, with offices in Atlanta, Chicago, and San Francisco, FOCUS provides a range of investment banking services tailored to the needs of middle market companies. FOCUS specializes in serving businesses with revenue or transaction sizes between $5 million and $300 million, serving entrepreneurs, corporate owners, public companies, private companies or operating units, and various types of investors.

For 24 years, FOCUS has successfully integrated corporate development consulting and transactional expertise with its extensive research capability. The firm has long standing experience in completing mergers, acquisitions, divestitures, capital formation assignments, corporate development consulting projects, and financial advisory engagements.

Over twenty FOCUS Partners and Principals provide over two centuries of C-level operating experience in a variety of industries.

Please contact us at: info@focusbankers.com