Venture Capital Action Inches Up in Third Quarter

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For the first time in more than a year, venture capital investment in Southern California is on an upswing.

The number and dollar value of venture capital investments rose modestly in the third quarter both in Los Angeles and across Southern California, according to the quarterly Money-

Tree Report by PricewaterhouseCoopers LLP and the National Venture Capital Association.

In Los Angeles, there were 25 venture investments in the quarter, a 14 percent rise from the previous term, while the value of investment nearly doubled to $172 million. Across the region, including L.A., Orange and San Diego counties, $476 million was invested in 65 deals – both slight increases.

It was the first time since the second quarter of 2008 that the number and value of venture capital deals have risen. With modest signs of improvement in the economy, experts predict venture capital investment to continue to rise.

“The increase in venture capital investing this quarter is very encouraging,” said Randy Churchill, director of emerging company services for PricewaterhouseCoopers in Los Angeles, in a statement. “With the signs pointing to an economic recovery, albeit a slow one, we’re likely to see the pace of investing continue to strengthen over the next several quarters.”

Sweet Offerings

Nara Bancorp Inc. has joined the growing list of local banks raising capital in the stock market.

The parent of Nara Bank, based in Koreatown, said last week that it has commenced a common stock offering to raise $71 million.

The offering, underwritten by Keefe Bruyette & Woods, follows a recent shelf registration by Nara in which the company said it may try to raise as much as $150 million. A shelf registration allows a company to prepare to issue securities, such as common stock or warrants, in the near future.

Meanwhile, Cathay General Bancorp, the L.A. holding company for Cathay Bank, said last week that it has closed its own offering, which raised $76 million.

Neither Nara nor Cathay said how it intends to use the proceeds.

Other local banks raising capital through stock offerings in recent months include East West Bancorp Inc. and Preferred Bank.

Tackling Finances

With a possible lockout looming over the 2011 National Football League season, the union representing professional football players has enlisted a local company to provide financial guidance for the athletes.

The NFL Players Association will partner with Financial Finesse Inc., a Manhattan Beach company providing financial education services, “to ensure that every player has the information and tools they need to prepare financially for any potential obstacle and to establish lifelong financial security,” the union said in a statement.

Under the program, Financial Finesse will offer a variety of services, including financial planning workshops and assistance in evaluating business opportunities.

Negotiations among team owners and the players association have stalled recently, leaving open the possibility of a lockout in 2011, in which case some or all games might be cancelled. The union cited the possible lockout as one impetus for the program. Also, the union noted that NFL players need to be ready in the event that an injury ends their careers early.

Nice Pickup

Bank failures aren’t bad for everybody.

CVB Financial Corp., the Ontario parent of Citizens Business Bank, has acquired the assets and deposits of San Joaquin Bank after the Bakersfield institution failed this month.

Through the acquisition, CVB gained five branches and more than $600 million in deposits. CVB entered into a loss-sharing sharing agreement with the Federal Deposit Insurance Corp.

The failure of San Joaquin was the 99th of 2009.

Turning Pages

Platinum Equity made it to the final round, but ultimately went home empty-handed.

New York Times Co., which hired an investment bank in June to explore a possible sale of the Boston Globe, announced this month that it will not part with the venerable newspaper.

Platinum, a Beverly Hills private equity firm founded by billionaire investor Tom Gores, had been a leading contender to acquire the newspaper. Both Platinum and a team led by former Globe executive Stephen Taylor were recently invited to tour the newspaper’s headquarters.

Platinum, which owns companies in a variety of industries, is not unfamiliar with the newspaper industry: In March, the firm acquired the San Diego Union-Tribune.

C-Suite News

SunAmerica Cos., the Woodland Hills subsidiary of American International Group Inc. specializing in retirement planning, announced that Stephen Maginn was appointed to the newly created position of chief distribution officer, where he will oversee sales and distribution in the company’s mutual fund division.

Staff reporter Richard Clough can be reached at [email protected] or at (323) 549-5225, ext. 251.

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