Atel Growth Capital Fund 8 proceeds will fund emerging growth firms

By Toni Weeks

San Diego, Dec. 20 - Atel Growth Capital Fund 8, LLC, a new fund that will provide acquisition financing of equipment and other capital assets for emerging growth companies financed by venture capital as well as established, privately held companies without publicly traded securities, announced an offering of units in an S-1 filing with the Securities and Exchange Commission.

The company is offering 7.5 million units of limited liability company interest for $10 apiece. The minimum investment is for 500 units. The fund will cancel the offering if it does not sell $1.2 million of units in the first year. If the minimum funding is achieved, the offering will continue until the earlier of the sale of 7.5 million units or two years.

The investments will be structured as debt and debt-like financings that are collateralized by equipment and other capital assets. The fund's objective will be to distribute the net revenues from its investments to investors.

About 87% of the capital raised will be used to make portfolio investments. At least 0.5% of the initial capital will be held as reserves. Of the remaining capital, 9% will be used to pay selling commissions, 1% will be used to pay underwriters' expenses and up to 2.5% will be used to pay other offering and organization expenses.

The fund's investment manager is San Francisco-based AGC 8 Managing Member, LLC.

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