New Arizona-Exclusive Private Equity Fund

New Arizona-Exclusive Private Equity Fund Seeks To Ease Small Business Funding Drought in State

Your Source Pacific Fund I, LLLP Purchases Augusta Ranch Golf Club in Mesa; Eyes Investment Opportunities in Other Arizona Companies.

Augusta Ranch Golf Club At a time when small- to medium-sized businesses are having trouble finding financial backing, a new Phoenix-based private equity firm is looking to buck economic trends and find new investment opportunities in Arizona companies.

Your Source Partners, LLC, recently made its second major investment deal, as general partner to Your Source Pacific Fund I, LLLP by purchasing Augusta Ranch Golf Club in Mesa (www.augustaranchgolf.com) for $1.8 million from A.R. Development, LLC. 

The fund previously invested $1.75 million in Arizona based DreamBrands, Inc. on November 1, 2007, which is using the capital to market several innovative personal care products developed in DreamBrands Arizona’s unique research laboratory. DreamBrands products include a personal lubricant containing a natural extract derived from ocean plants. (www.dreambrands.net)

Your Source Partners is a member of the Your Source family of companies, which also includes the internationally renowned portfolio manager Roger Nusbaum, as well as legal, accounting, golf management and medical management services. For a comprehensive overview of the Your Source family of companies, visit www.ysfi.com.

A funding source in a challenging environment
With the current economic climate, private equity funds are some of only a few sources of funding for growing small business in Arizona.

“It’s bone dry for small businesses today,” said Ray DiMuro, General Partner of Your Source Partners. “The banks are not lending. It doesn’t matter how strong your credit, how strong the cash flow, how much cash you bring to the table, the banks have shut it down in Arizona right now — and this creates opportunity for us.”

Unlike the governance shortcomings of public capital markets, managers of private capital markets are freer to identify investment opportunities and flexibly shift funds in those directions. As a result, private equity funds can produce potentially higher financial returns than public and internal markets and provide an excellent source of capital to growing small businesses.

“The establishment and growth of this fund is a great resource for the community and represents a great strategy and vision on behalf of our clients,” said Phillip P. Guttilla, Chair of the Business Transactional Group at Ryley Carlock & Applewhite. “It’s an honor to be part of developing a fund like this, and to bring to bear both the sophisticated legal approach necessary for success and a keen understanding of Arizona’s unique challenges.”

Fitting the criteria
Your Source Partners, LLC is investing in Arizona companies with experienced management, strong revenues, attractive and sustainable margins, competitive advantage, barriers to entry, intellectual property, scalable potential to increase market share, and defined exit strategies.

Amazingly, a par 61 executive golf course in Mesa fits those requirements perfectly.

Augusta Ranch is a hidden gem, renowned for its spectacular playing conditions and outstanding customer service. It has been rated “Best Executive Golf Course in Arizona” by The Arizona Republic. But Augusta Ranch Golf Club is particularly unique from a business perspective because of two factors — water and relationships.

Augusta Ranch Golf Club has a sustainable source of water, and “more important than owning the water rights, we act as a steward of Arizona’s precious commodity,” said Don Rea, President of Your Source Golf, who has been an integral part of the course since it was built in 1998. “We employ state of the art agronomy techniques to come well under our allotment of water each year.”

And, located within the Mesa's Augusta Ranch community, it enjoys an excellent relationship with enthusiast homeowners in the community.

“Your Source Partners will extend every courtesy to all homeowners,” Rea said. “We know that the quality of the course is important to owners whether they’re golfers or not. With our comfortable club house, meeting rooms, food and beverage services, we want to be a destination for community events, parties, and meetings.”

For more information…
For more information on Your Source Partners, LLC or the other companies in the Your Source family, visit www.ysfi.com, or contact Collett at 602-343-1700.

 

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