NEWPORT BEACH, CA--(Marketwired - Apr 17, 2017) - Kodiak Capital Group, LLC ("Kodiak"), a leading manager of multiple funds focused on making venture investments in public companies, today announced that it is allocating a larger portion of its funds to "at-the-market transactions" (ATMs), including equity lines of credit (also known as standby equity distribution agreements), which currently represent 15% of Kodiak's portfolio. According to market data firm Placement Tracker, at-the-market transactions have become the most prevalent method for public companies to raise capital in recent years.
With a dedicated senior-level team, Kodiak continues to be a top provider of equity line offerings, having originated more than 125 ELOC transactions since 2009 -- more than any other similar fund -- with 22 in 2016 alone. Kodiak's additional portfolio investments consist of equity and debt holdings acquired from creative proprietary structures, follow-on offerings including confidentially marketed public offerings (CMPOs) and registered direct offerings (RDOs), initial public offerings (IPOs), and private investment in public equity (PIPEs).
ATM transactions allow public companies to sell shares from time-to-time based on the current market price of their shares. ATMs have certain advantages over the traditional offering model, including timing and pricing control, minimal market impact, and minimal management involvement.
Kodiak enables companies to raise incremental capital at the most opportune times to take advantage of positive stock momentum and increased demand. Not only does the fund manager provide both balance sheet and capital markets flexibility by offering continued access to the equity capital markets, it allows public companies to better match sources and uses of funds for the foreseeable future.
Kodiak's Managing Member Ryan Hodson said, "At-the-market offerings are an important tool for an issuer's financing toolkit, providing greater control, allowing public companies seeking growth capital to be more strategic in their approach, and affording them a greater measure of control over the process. ATMs (including ELOCs) are much more flexible and tend to be less expensive than other types of offerings, which can be critical for lower profile, emerging companies seeking to manage dilution to existing shareholders."
Kodiak became a consistent leader in equity line investing for almost a decade due to the capital markets expertise of its management team and the strength of its advisory board, back-end data support staff, and broader distribution platform, which enables it to provide its portfolio companies with a differentiated suite of strategic products.
"Because Kodiak has developed into a leading fund manager for equity line transactions, and due to the increasing market demand for at-the-market transactions, we continue to see opportunities for our funds to provide companies across all industries access to what we believe to be the most effective, efficient, and accretive methods of raising capital," stated Hodson.
"While equity lines represent a small portion of its business, Kodiak, as a solutions-oriented investor dedicated to meeting the needs of its clients, remains committed to the product now more so than ever. Our ability to innovate and adapt the structure across all sectors has enabled us to assist our portfolio companies navigate unpredictable market environments and utilize cost-effective ways to access the capital markets. As a result, we have decided to allocate a larger portion of our capital to equity lines, and we will continue to develop creative and strategic methods of utilizing ATM offerings to enhance our portfolio companies' cash and working capital needs."
For more information on Kodiak's investment objectives, philosophies, and criteria, please email email@example.com and follow the company on its social media channels:
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About Kodiak Capital Group, LLC
Founded in 2009, Kodiak Capital Group, LLC pursues non-control equity and debt investments in lower middle market public companies, with a specific focus on niche-market leaders that provide high-margin products or services. Kodiak targets investments in a wide range of industries and market sectors, with a focus on consumer products, life sciences, and social media technology, and has engaged in approximately 300 transactions with 225 companies. For more information on Kodiak Capital Group, LLC, please visit www.kodiakfunds.com.