Behrman Capital doubles investment fund with rights offering to limited partnership; Firm to Open San Francisco Office.

NEW YORK--(BUSINESS WIRE)--Nov. 9, 1995--Behrman Capital, a private investment fund, announced today that it has increased the capital committed to its limited partnership fund to $123 million with a rights offering that was fully subscribed by virtually all of the limited partners.

Behrman's investment fund, which provides expansion capital and acquires growth companies in select industries, had its final closing in July of 1993 with committed capital of $67 million. Ninety percent of Behrman Capital's limited partners are institutional investors, including the California Public Employees' Retirement System (CalPERS).

"We recognize that it is highly unusual to initiate and complete a rights offering for a closed fund and we are grateful for the overwhelming support that our limited partners have shown us," said Darryl G. Behrman, a founding partner. He credited Hamilton Lane Advisors Inc., a Philadelphia-based firm that is an advisor to CalPERS, as being particularly supportive of the rights offering effort.

Mr. Behrman said 85 percent of the firm's limited partners doubled the capital they originally committed under the same terms of the original partnership. He said the rights offering will allow the fund to increase the size of its individual investments and provide a platform for accelerated growth.

Underscoring Behrman Capital's extensive investment activity in California, Mr. Behrman also announced that the firm plans to open an office in San Francisco in January. The office will be located at Four Embarcadero Center.

"Much of Behrman Capital's focus is in California and we felt the time has come to establish a physical presence in the state," Mr. Behrman said. He added that the firm also plans to hire several investment professionals, including three principals. Two of the principals will be located in the San Francisco office.

Behrman Capital was founded by Darryl and Grant G. Behrman, who previously held senior positions at major Wall Street institutions. The firm invests in management buyouts of growth companies in industries as diverse as health care, contract manufacturing, software and information services. The firm also provides expansion capital to emerging growth companies principally in high technology industries.

Behrman Capital's objective is to generate attractive, long-term capital gains for shareholders in partnership with management teams to build companies of significant value. Prior to the rights offering, the fund had invested approximately half of its committed capital in seven transactions; Behrman Capital realized compound annual returns in excess of 100 percent on the three transactions it exited.

CONTACT: Morgen-Walke Associates

Eric Starkman

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