Valesco Commerce Street Capital, LP Holds Final Close

Seventy five percent of the fund’s capital was supplied by 53 community banks across the states of Texas, Arkansas, Oklahoma, Louisiana and New Mexico. A number of institutions, high-net-worth individuals and family offices contributed the balance of the capital.

VCSC was formed for the purpose of raising capital for a private investment fund under the Small Business Investment Company (“SBIC”) program of the U.S. Small Business Administration (“SBA”). The goal of VCSC is to provide needed long-term subordinated debt and equity capital to growth-oriented small- and lower-middle-market businesses located primarily in the South Central U.S.

“The SBIC program has a long and successful track record of providing growth capital to small businesses and helping the economy in its recovery and job growth,” stated Dory Wiley, CEO of Commerce Street Capital. “At the same time, the somewhat unusual non-leveraged structure of this SBIC fund also provides significant benefits to banks and the communities they serve.”

The partnership between CSC and Valesco proved to be a good match. Valesco’s historic activities of providing capital and management support for growing businesses and CSC’s significant investment banking and advisory resources, especially in the area of community banking, were instrumental in attracting community banks as well as several key non-bank investors to the fund.

Valesco’s long time managing directors Bud Moore and Jack Sadden were joined by Patrick Hamner, a former Chairman of the National Association of SBICs who previously served with another Dallas-based SBIC. Bud Moore commented that the Valesco team is enthusiastic about the opportunity to put capital to work in growth oriented businesses in the South Central US. “I think we are at an opportune time to invest in great businesses that have survived the recent economic turmoil and emerged as leaders in their industries. We believe our capital and experience can have a meaningful impact in these companies as they seek to grow and add jobs in a recovering economy.”

According to the SBA website, “The mission of the SBIC program is to improve and stimulate the national economy and small businesses by stimulating and supplementing the flow of private equity capital and long term loan funds for the sound financing, growth, expansion and modernization of small business operations while insuring the maximum participation of private financing sources.”

About Valesco Industries, Inc.

Valesco Industries, Inc. is a Dallas, Texas-based private equity firm that focuses on making control and non-control investments in select growth-oriented small- and lower- middle-market businesses engaged in manufacturing, distributions and business-to-business services. Valesco specializes in partnering with a company’s management team to support its growth objectives. As long-term industry veterans, the principals have capitalized and built numerous successful businesses, serving those companies in varying roles as investors, managers, advisors and directors. For more information, visit www.valescoind.com.

About Commerce Street Capital

Commerce Street Investment Advisor and Commerce Street Capital Investment advisory services for Valesco Commerce Street Capital, L.P. are offered through Commerce Street Investment Advisor, LLC (“CSIA”) a federally registered investment advisor headquartered at 1445 Ross Avenue, Suite 2700, Dallas, TX 75202. CSIA is affiliated with Commerce Street Capital, LLC (“CSC”), a private investment banking firm which specializes in investment banking services (mergers and acquisitions, valuations and regulatory issue advising) and bank development (on-site consulting and management of capital raising, market assessments, application development, Board of Director placement). The firm provides tailored solutions for all or part of a financial institution’s business lifecycle. CSC is also headquartered at 1445 Ross Avenue, Suite 2700, Dallas, TX 75202. For more information, visit www.commercestreetcapital.com or call 214-545-6800. CSC is a member of FINRA/SIPC.