First Capital’s BDC Files Preliminary Prospectus with SEC

First Capital Investment Corporation, a publicly registered non-traded business development company, filed a preliminary prospectus with the Securities and Exchange Commission for its $500 million offering.

The company was previously known as Freedom Capital Investment Management and struggled to raise equity from investors before being purchased by First Capital Real Estate Investments, which sponsors non-traded direct investment programs.

First Capital Investment Corporation intends to provide financing to small- and middle-market U.S. companies through directly originated loans, equity investments, and to a lesser extent, participating in syndicated transactions.

Shares of common stock will be priced at $10.00 each and include a 7 percent sales commission and 3 percent dealer manager fee. The minimum purchase is $5,000.

FCIC Advisors LLC, an affiliated unregistered investment advisory firm, will manage the company’s investments and activities. According to the prospectus, FCIC Advisors intends to register as an investment adviser with the SEC once the company has at least $25 million in assets under management.

FCIC Advisors will receive a 2 percent annual management fee, as well as an incentive fee based on the offering’s performance.

Democracy Funding, an affiliated company that was also purchased by First Capital, serves as the dealer-manager in the offering.

First Capital Investment Corporation invests in private U.S. small- and middle-market companies and currently has one unsecured $1.5 million loan in First Capital Retail LLC. The company has raised approximately $6.1 million in investor equity.

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