Stanmore Capital
Stanmore Fund, LP
The Investment Fund
Stanmore Fund, LP acts as a lead equity investor in a pre-IPO or IPO round of financing along with other institutional investors in a larger round of financing. The fund will invest shortly prior to the IPO if there is a strong expectation of a significant discount to the IPO price. With this structure, incentives to create shareholder value are perfectly aligned between the company and Stanmore Capital as the banker. While Stanmore Capital does charge the investee company banking fees related to successful acquisitions and funding events, the overall success of a deal comes mainly from the wealth created through share value increases on a public exchange.
Stanmore Fund, LP is best described as a capital aggregation rather than a standard investment fund. The General Partner takes no management fees and has no free carry or promote. Stanmore Fund, LP’s target investment in the pre-IPO or IPO round is between $500,000 and $3,000,000, depending on the size of the round and number of participants. Once this investment is made, Stanmore Fund, LP may distribute the shares to each limited partner, leaving that investor to decide when and how much to sell on the market. Stanmore Capital generally has at least a 12 month advisory agreement with the company leading all capital markets communications and investor relations. This ensures that limited partners in the fund are able to take advantage Stanmore Capital's expertise in capital market communications and investor relations management.
Stanmore Fund, LP is an open fund, meaning the fund is generally in the habit of taking in new funds from new and existing limited partners on a quarterly basis.
Stanmore Fund, LP generally keeps enough funds on hand for up to three investments without having to replenish the fund.