Crossroads Capital Announces Engagement of Setter Capital for Secondary Sales

Aug 25 2016 | 9:33pm ET

Private equity secondaries service provider Setter Capital has been chosen by BDC firm Crossroads Capital to assist it in identifying prospective buyers for portfolio investments.

Crossroads’ board of directors decided earlier this year to monetize the company's portfolio holdings in accordance with its new investment objective, which is to preserve capital and maximize stockholder value, according to a statement. It will do so by pursuing the sale of its portfolio positions at the earliest practical date and deploying surplus cash as appropriate, the firm said at the time. 

As a publicly traded BDC, Crossroads has long traded for a discount to its net asset value. As of June 30, 2016, Crossroads’s NAV was $3.23 per share; it closed Thursday at $2.04 per share. At the end of the second quarter, the firm’s assets included $18.3 million in investments and $12.8 million – or around $1.33 per share – in net cash and investments. The company, originally known as Keating Capital, listed on NASDAQ in 2011 and changed its name to BDCA Ventures in 2014 and again to Crossroads Capital in late 2015. 

No additional details, such as sales timing or expected valuations for the portfolio positions, were immediately available.

Founded in 2006, Setter Capital is a private equity secondary market advisory firm. Its clientele includes some of the world's largest and most sophisticated private equity investors and fund managers.  Since inception, the firm has completed over $20 billion in transactions.

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