Cascadia Capital will invest up to $500 million in Pacific Northwest companies with the creation of its new “Investment Club,” a unique group of family offices and other backers interested in long-term deals.
The Seattle-based investment bank is targeting $25 to $75 million per investment as part of the club, which is made up of Cascadia Private Capital — its merchant banking affiliate — as well as Scout Partners (family office of The Blackstone Group founder Pete Peterson) and Petrus Asset Management Company (family office of business magnate Ross Perot).
Cascadia Capital Michael Butler told GeekWire that there’s a big opportunity to invest “patient capital” in family-owned and privately-held companies across the Pacific Northwest looking to retain independence or avoid institutional private equity funds.
“Access to this Investment Club capital will broaden the range of services Cascadia can offer to our core client base, namely the family business owner and entrepreneur,” he said. “Furthermore, we have recognized a rising trend of family offices outside of the region seeking a way to access the high-quality businesses in the Pacific Northwest.”
The additional capital will provide dollars for companies in a region long criticized for a dearth of local cash, particularly for those in the later stage.
Butler said the club differs from a private equity or venture capital fund in a few ways. Its members will decide whether to participate in an investment on a deal-by-deal basis. Those investments are also not tied to a fund with a finite life, allowing for more patience and flexibility, Butler said.
The club will focus on investments across traditional industry verticals, including growth-stage tech and tech-enabled companies.
“The Investment Club will tend to focus on minority, growth equity investments in which the incumbent owner will remain in control, and the companies will remain independent,” Butler said.
Cascadia, founded in 1999, will continue serving clients seeking capital from more traditional private equity fund sources. It has nearly 60 employees across offices in Seattle, Los Angeles, Minneapolis, and New York. Several of the firm’s clients have been acquired this year, including Seattle-based startups DatStat and LeaveLogic.