New equity fund will target Reno

A Sacramento-area private equity fund that specializes in mid-sized companies is targeting Reno and Carson City as it begins raising a new $75 million fund.

DCA Capital Partners LP of Roseville has brought a pair of northern Nevada private-equity specialists Dusty Wunderlich and Trent Gordon into the firm as principals who will focus on building DCA's Nevada portfolio.

Gordon and Wunderlich previously were managing Optimum Strategy Group, venture-capital and private-equity firm in Zephyr Cove.

Wunderlich said last week that DCA's newest fund targets cities such as Reno that have seen relatively small amounts of private-equity investment.

The fund targets growth companies with annual revenues ranging from $10 million to $150 million.

"We're industry agnostic," Wunderlich said.

Gordon noted, however, that the fund won't invest in real estate, mining or agricultural companies although it will look at companies within the supply chains of those three sectors.

DCA generally will look to take a minority equity position in its portfolio companies and use the operational experience of principals and industry-specific advisory board to improve the profitability companies in which it invests.

In most instances, Wunderlich said, DCA looks to hold its investments for three to five years.

The company is beginning to scout investment possibilities in northern Nevada even as it completes raising the first $20 million in its new fund.

Geographically, the fund looks to invest in companies in Nevada, Arizona, Utah, New Mexico and the Central Valley of California.

DCA also is scouting northern Nevada for clients it can serve as a mergers-and-acquisition advisor.

The company's marketing strategy will include a series of regular seminars beginning on June 25 with a session on innovation at Desert Research Institute featuring management consultant and author Holly Green.

Wunderlich said the company expects to open offices in both Reno and Las Vegas.