Daily Herald: Will More Capital Flow Into Utah Companies?

May 22, 2015

While visiting Utah this week, Frontier Capital principal Seth Harward spoke with a reporter for the Daily Herald about our plans for the $390 million Fund IV.  The reporter also spoke with Lyle Ball, the chief operating officer for Utah-based MultiLing, the patent translation service provider in which we invested in 2013. Find out what both had to say in the resulting article:

Daily Herald: Will More Capital Flow Into Utah Companies?

One growth equity investment firm based in North Carolina has its eye on Utah businesses.

Frontier Capital announced in March that it closed on Frontier Fund IV, L.P., a $390 million growth equity fund investing in lower middle market software and technology-enabled business services companies. The firm is looking at businesses across the nation, but some of those funds are very likely to come to Utah.

“We’re evaluating a couple of businesses in Utah right now, and we’re here on a monthly basis,” said Seth Harward, principal at Frontier Capital. “We feel like because we’re here, it gives us the ability to establish relationships.”

Frontier Capital takes a relationship-based approach to investing, and the process takes months to even years before money ever changes hands. The firm does not consider itself a venture capital firm, or on the other end, a leverage buyout company. It falls into the middle of those two extremes, appraising businesses based on their growth and success, and funding them at a certain stage. That tipping point is usually when the business is bringing in revenues in the $5 million to $30 million range and looking to grow.

“We come in, when that foundation is already there, but they need capital. We take what is already a good business and accelerate their value and growth, making it a great business,” Harward said.

Read the full article, including how MultiLing has benefited from the Frontier investment, at http://www.heraldextra.com/business/local/article_da5d514d-9435-5d7a-a6d9-047f875ec594.html