The Stonehenge Rural America Fund is the joint venture of Stonehenge Growth Capital and Conterra Asset Management, and works to provide capital to high-growth, high-potential small businesses in rural markets. The Fund focuses on those businesses with less than $5 million of EBITDA in manufacturing, energy services, technology and agriculture. Capital may take the form of a “one-stop” loan which combines senior and mezzanine capital, mezzanine debt, or preferred equity. Investment sizes range from $2 – 10 million. With each investment, the Fund seeks to help build outstanding businesses in rural markets that grow jobs in their communities.
The purpose of the Rural Business Investment Program (RBIP) is to promote economic development and create wealth and job opportunities among individuals living in rural areas and help to meet the equity capital investment needs primarily of smaller enterprises located in such areas. The 2002 Farm Bill authorized the USDA to establish the Rural Business Investment Program to promote economic development and job creation in rural areas. USDA licenses newly formed for-profit entities as Rural Business Investment Companies that then use the equity raised in capitalizing their funds to make venture capital investments, mostly in smaller enterprises located primarily in rural areas.
$60 million total Limited Partnership interests; includes General Partnership contribution by the Stonehenge Growth Capital team of 2% of the fund. Minimum Limited Partnership investment size of $500,000. Lead investor identified committing 24.99% of the total capital raised.
10 years with three one-year renewals; five-year initial investment period from final closing.
8% preferred return plus 80% of the cash flow generated after achieving the preferred return and management catch up.
2% annual management fees and a 20% carried interest to Manager after preferred return achieved.