Specialty Finance Company to Focus on Small Business Credit Niche
SAN FRANCISCO--(BUSINESS WIRE)--
Harvest Capital Strategies, the alternative asset management arm of JMP
Group Inc. (NYSE: JMP), announced today the formation of Harvest Capital
Credit LLC, a specialty finance company providing structured credit to
small businesses. Richard P. Buckanavage, who was formerly president and
chief executive officer of Patriot Capital Funding, Inc., serves as
president of Harvest Capital Credit and is joined by longtime colleague
Ryan T. Magee. Mr. Buckanavage and Mr. Magee are based in New York.
"Harvest Capital Credit is a dedicated provider of growth and
opportunity capital to small businesses located throughout the U.S.,"
said Joseph A. Jolson, JMP Group's chairman and chief executive officer.
"Although Harvest Capital Credit will originate transactions
independently, it will leverage the infrastructure and capabilities of
JMP Credit Advisors and should benefit from relationships and
opportunities presented by Harvest Capital Strategies, which has
committed an initial equity investment of $10 million and an additional
line of credit of up to $30 million."
"The lingering effects of the financial crisis and current financial
market volatility have impeded capital formation in the commercial
lending industry," said Mr. Buckanavage. "The lack of liquidity is most
pronounced for small businesses—the very market we seek to serve. We
believe that the factors impacting our industry will persist, which
should generate a strong pipeline of attractive investment opportunities
for our platform."
Mr. Buckanavage co-founded Patriot Capital Funding, a publicly traded
business development company that provided debt financing to lower
middle-market corporate borrowers, in 2003 and served as a member of its
board of directors, its president and its chief executive officer until
its sale in 2009. From 1999 through 2003, he held a variety of positions
at GE Capital Corporation, most recently as managing director and head
of debt capital markets, overseeing all U.S. debt syndication and
private placement activities for the company's middle-market global
sponsor finance and commercial finance business units. From 1995 until
1999, Mr. Buckanavage was a senior vice president at Creditanstalt
Corporate Finance, Inc. and a senior investment officer at Creditanstalt
Small Business Investment Corporation, where he managed a portfolio of
senior secured loans, subordinated debt investments and equity
investments in excess of $1.2 billion. He previously held various
portfolio management and business development roles in the leveraged
finance groups at Bank of America, Fleet Bank and its predecessors.
Mr. Magee was formerly a vice president at Patriot Capital Funding and
its successor, Prospect Capital Corporation. At Patriot Capital Funding,
he was responsible for originating, structuring, underwriting and
monitoring debt and equity investments, helping to manage a portfolio of
more than 30 investments valued at nearly $300 million at the time of
the company's sale in December 2009. He previously held a portfolio
management role in GE Capital Corporation's global sponsor finance unit.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended.
Forward-looking statements provide JMP Group's current expectations or
forecasts about future events, including beliefs, plans, objectives,
intentions, assumptions and other statements that are not historical
facts, such as the prospect of attractive investment opportunities for
Harvest Capital Credit LLC and the availability of debt financing of up
to $30 million. Forward-looking statements are subject to known and
unknown risks and uncertainties that could cause actual results to
differ materially from those expected or implied by the forward-looking
statements. Actual results could differ materially from those
anticipated in forward-looking statements for many reasons, including
the factors described in the sections entitled "Risk Factors" and
"Management's Discussion and Analysis of Financial Condition and Results
of Operations" in JMP Group's Form 10-K for the year ended December 31,
2010 as filed with the Securities and Exchange Commission on March 8,
2011 as well as in the similarly captioned sections of other periodic
reports filed by JMP Group under the Exchange Act. The Form 10-K for the
year ended December 31, 2010 and all other periodic reports are
available on JMP Group's website at www.jmpg.com
and on the Securities and Exchange Commission's website at www.sec.gov.
Unless required by law, JMP Group undertakes no obligation to publicly
update or revise any forward-looking statement to reflect circumstances
or events after the date of this press release.
About JMP Group
JMP Group Inc. is a full-service investment banking and asset management
firm that provides investment banking, sales and trading, and equity
research services to corporate and institutional clients and alternative
asset management products to institutional and high-net-worth investors.
JMP Group operates through three subsidiaries: JMP Securities, Harvest
Capital Strategies and JMP Credit Advisors. For more information, visit www.jmpg.com.
JMP Group Inc.
Investor Relations & Media
Source: JMP Group Inc.
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