San Diego’s Huntington Capital Raises $91.7M for Impact Fund

San Diego-based Huntington Capital, which provides debt and equity financing to private, small-to-mid-size companies, said it has raised $91.7 million in capital commitments for its third fund.

The firm raised $78 million for its previous fund in 2008, and Huntington says it has raised more than $210 million in total capital commitments for its three funds since the firm was founded in 2000. Huntington says it has invested in approximately 50 companies throughout the Western United States.

Huntington targets lower-risk deals with well-established companies that need between $2 million and $9 million in capital, and that generate annual revenue of $10 million to $75 million with positive cash flow. The firm usually eschews investments in riskier, early-stage technology startups.

Nevertheless, the firm has made a number of investments in technology-based companies, such as Park City, UT-based Datashield, which provides data security services; Tigard, OR-based Epis, which provides utilities with software and ready-to-use data that is used to forecast wholesale electricity market prices; and Irvine, CA-based Resolve Systems, which automates the process of resolving incidents on IT networks, enabling quicker resolution of customer problems.

Huntington has been making investments from Huntington Capital Fund III L.P., and lists seven portfolio companies on its website, including Datashield, Epis, and Resolve Systems.

In a statement, Huntington also notes a growing emphasis in the emerging area of “impact” funds that both earn favorable returns and help companies produce a positive social impact. The firm says 80 percent of the investments from its third fund help increase the number and quality of jobs for low- and moderate-income individuals.

In the statement, managing partner Morgan Miller says, “It’s important to provide capital that results in sustainable financial performance and enhances the skills and quality of life of the workforce.”

Bruce V. Bigelow is the editor of Xconomy San Diego. You can e-mail him at bbigelow@xconomy.com or call (619) 669-8788 Follow @bvbigelow

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