THCG Announces the Distribution of WGP Fund's $83.6 Million in Assets; THCG Realizes $15.6 Million in Asset Value; Fund Produced Returns of Over 1,270%
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NEW YORK--(BUSINESS WIRE)--Oct. 2, 2000--THCG, Inc. (NASDAQ/NM:
THCG), a leading architect and builder of global Internet and
technology enterprises, today announced the liquidation and immediate
asset distribution of its Walnut Growth Partners, LLC fund (WGP Fund).
Pursuant to terms negotiated with the WGP Fund's sole limited
partner, this distribution provides for THCG to receive 133,617 shares
of webMethods, Inc. (NASDAQ/NM: WEBM), which were valued at
approximately $14.4 million as of the market close on September 27,
2000, as well as shares of certain other investments of the fund with
an estimated value of $1.2 million. The webMethods shares are freely
tradable and no longer subject to lock-up restrictions.
In 1997, Walnut Growth Partners, LLC invested a total of almost
$6.1 million in the fund's assets. The value of those assets as of the
market close on September 27, 2000 was approximately $83.6 million.
These assets will be distributed between the WGP Fund's limited
partner ($68.0 million) and THCG ($15.6 million).
THCG Co-Chairman and CEO Joseph D. Mark said, "We are happy to
announce this liquidity event for the WGP Fund. Its returns of over
1,270 percent on invested capital set a high bar for us to try to
match in our future funding vehicles. We will use the $14.4 million in
liquid assets, which are now wholly the property of THCG, to establish
new funding vehicles under consideration, to continue to invest in new
and existing partner companies, and to further our THCG V3
fee-for-service offerings."
THCG Co-Chairman and CFO Adi Raviv added, "This event now
strengthens our balance sheet by giving us significantly enhanced
liquidity. While we are great believers in webMethods and its future
growth prospects, it is our intention to monetize our position over
time, as market conditions permit, and invest the proceeds in many of
the exceptional opportunities that both THCG and our Zinook subsidiary
are currently evaluating."
Mr. Raviv also noted that "We continue to pursue various
alternatives to maximize returns from our current equity positions, as
our primary focus is on proving the sustainability, viability and
value of our business model, and increasing shareholder returns." |
