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Greater Cincinnati's newest venture capital fund is switching gears--from raising capital to investing it.
River Cities Capital Fund expects to make between four and six investments in 1995, says Edwin "Ted" Robinson, who started the fund along with partner Glen Mayfield last September.
River Cities is a government-backed Small Business Investment Company. It is the first equity-based small-business investment company in the area and one of only 18 across the country, according to The Private Equity Analyst, a newsletter for investors and managers of alternative assets.
Small-business investment companies are private investment firms that provide financing to small businesses for growth, modernization and expansion. They are licensed by the U.S. Small Business Administration but independently make their own investment decisions. They use their own private capital and can obtain additional funds from the SBA.
River Cities expects to raise more than $13 million in private capital by the end of 1994, Robinson says. It would be eligible to obtain more than $26 million, giving it the potential to be a $40 million fund.
The fund will have about 35 investors. The investors are principally from Cincinnati institutions, corporations...