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Greed is Good: New Private Equity Firm Looks To Invest In AV Companies


  • December 17, 2008

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You can't make it through five minutes of CNN or any news broadcast for that matter without hearing about the gloom and doom of the American and the global economy. Unemployment, automaker bailouts, the collapse of the mortgage industry and so many other factors have everyone from the poverty stricken to billionaires acting, well...scared. This level of fear hasn't missed the AV business as damn near everyone in the consumer electronic space is looking for ways to cut back and prepare for the worst.

Today one of the first signs of greed taking over for fear peeked out of the dark clouds as a new private equity firm called DMC Capital announced that they will be looking to invest in consumer electronics companies in various ways. As explained by Gordon Gecko in the film Wall Street "Greed is good" and never more than today has greed been more welcomed in the consumer business as it will be greed (used not in the pejorative sense) that will bring the liquidity needed to keep the always popular consumer electronics business growing and innovating.

Private equity firms are not new to the world of high end audio video and certainly not to the world of Wall Street. A 49 percent share of Paradigm is owned by the same private equity firm that owns all of MartinLogan. It is only a matter of time until other investors look to buy into to the best, most profitable AV companies at today's bargain prices considering the lack of bank and other liquidity.

DMC Capital Funding is reportedly looking to offer growth funding and financing to well established companies that have between $20 million to $200 million in annual revenue and need financing to expand their reach and market penetration. Leveraging long-standing retail relationships and decades of experience of its principals with consumer product distribution and channel marketing services, DMC Capital Funding is uniquely positioned to provide both capital and advisory services to a broad range of industries.

DMC Capital is taking meetings on possible deals. To schedule a meeting with DMC Capital Funding people can contact Jim Zerka at 212.448.7629. I have a feeling his phone might be a bit busy today however.
 


Keywords

Gordon Gecko, venture capital for AV business, AV industry news, greed is good, greed works, greed is right

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