Rockwater Capital Partners, LLC (“the “Fund”) is an innovative private capital fund currently in its fund raising stage. The Fund’s management team intends to establish the Fund with an initial capitalization of up to $50 million.

The Fund’s purpose is to provide growth capital to an underserved yet significant universe of privately held businesses with established and growing revenues. The Fund targets companies whose capital needs exceed the capacity of individual investors ($1,000,000), but are not large enough to attract institutional investors ($5,000,000 or more). This situation creates a funding gap, which we term the Opportunity Gap.

The Fund maximizes investment returns in the Opportunity Gap through its proprietary investment method: Royalty Based Financing. This is a form of risk-oriented capital, which encourages long-term ownership, avoids ownership dilution, provides for a built-in exit strategy and promotes the development and growth of durable enterprises.

Portfolio companies instead of relinquishing the traditional private equity stake, will re-pay the Fund through royalties: regular payments based on a percentage of their gross sales, a process the Fund calls Royalty Based Financing. The Fund focuses primarily on expansion stage businesses, middle market management buyouts, and intra-family business ownership transfers.