SOURCE: LRG Capital

January 24, 2008 11:15 ET

LRG Capital Group Makes Second Investment in Japan's Arque Orion Group

Arque Orion's Securities Brokerages Are Logging Record Revenues

LARKSPUR, CA--(Marketwire - January 24, 2008) - LRG Capital Group LLC, a global merchant bank specializing in private equity, real estate and secured debt financing, as well as financial-advisory services, announced today it has made a follow-on investment in Arque Orion Japan Partners ("Arque Orion"), which operates regional wealth management and securities brokerages in Japan. In July 2007, LRG Capital Group disclosed its initial investment and a partnership that gives Arque Orion's high-net-worth clients access to the global merchant bank's investment management and corporate-advisory expertise, and to its institutional connections worldwide.

"We are pleased to announce a follow-on investment in Arque Orion based on its phenomenal growth of nearly 40 percent sequentially," said Lawrence ("Larry") Goldfarb, founder and CEO of LRG Capital Group. "Arque Orion expects to post a revenue growth rate of more than 1,600 percent over the past 14 months. Our investments in a highly successful emerging company like this reflect our ability to effectively source compelling, value-creating deals globally and across a diverse range of industries."

LRG Capital Commercial Ventures, a business unit of LRG Capital Group, made the initial and follow-on investments in Arque Orion. LRG Capital Group is also the investment manager for the BayStar Capital III Investment Fund, a multi-strategy fund established in July 2007 that makes direct investments in middle-market, public and late-stage private companies. The fund is managed by Goldfarb, whose previous funds -- BayStar Capital I and BayStar Capital II -- have collectively invested more than $1.5 billion of equity in more than 250 companies.

About LRG Capital Group LLC

LRG Capital Group LLC (www.lrgcapital.com) is a global merchant bank which provides innovative solutions to middle-market companies. The firm specializes in private equity, real estate and secured debt financing, as well as financial-advisory services to a diverse range of publicly traded and private companies. With offices in San Francisco, New York and Miami, the firm represents companies on equity and debt placements, restructurings, recapitalizations, management buyouts and other strategic alternatives. LRG Capital Group is also the investment manager for the BayStar Capital Funds. Additionally, the firm invests in and owns various entertainment interests, as well as U.S. and foreign real estate assets including derivative interests in real estate securities and real estate development projects and properties.

About the Arque Orion Group

The Tokyo and Los Angeles based Arque Orion Group (www.arqueorion.com), is the investment manager for Arque Orion Japan Partners, LLC, which makes direct control investments into Japanese broker/dealers and other Japanese financial service companies as part of an active roll-up/consolidation investment strategy. The group operates a US broker-dealer and a registered investment advisory business, principally to support its Japanese venture. The Arque Orion Group's acquisition targets in Japan are typically traditional regional stock brokerage companies. Acquired companies are master branded under the "Avalon" name but encouraged to retain unique identities and corporate cultures. The group expects to become a conduit for global investment products into many regions of Japan normally not accessed by Western firms.

Contact Information

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