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.”

Author: Bruce V. Bigelow

In Memoriam: Our dear friend Bruce V. Bigelow passed away on June 29, 2018. He was the editor of Xconomy San Diego from 2008 to 2018. Read more about his life and work here. Bruce Bigelow joined Xconomy from the business desk of the San Diego Union-Tribune. He was a member of the team of reporters who were awarded the 2006 Pulitzer Prize in National Reporting for uncovering bribes paid to San Diego Republican Rep. Randy “Duke” Cunningham in exchange for special legislation earmarks. He also shared a 2006 award for enterprise reporting from the Society of Business Editors and Writers for “In Harm’s Way,” an article about the extraordinary casualty rate among employees working in Iraq for San Diego’s Titan Corp. He has written extensively about the 2002 corporate accounting scandal at software goliath Peregrine Systems. He also was a Gerald Loeb Award finalist and National Headline Award winner for “The Toymaker,” a 14-part chronicle of a San Diego start-up company. He takes special satisfaction, though, that the series was included in the library for nonfiction narrative journalism at the Nieman Foundation for Journalism at Harvard University. Bigelow graduated from U.C. Berkeley in 1977 with a degree in English Literature and from the Columbia University Graduate School of Journalism in 1979. Before joining the Union-Tribune in 1990, he worked for the Associated Press in Los Angeles and The Kansas City Times.