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First Capital’s BDC Appoints New Director

The board of First Capital Investment Corporation, a publicly registered non-traded business development company, has appointed Jeff Davi to serve as an independent director and as a member of the audit committee and nominating and corporate governance committee, according to a filing with the Securities and Exchange Commission. The company also provided an update on its incomplete 2017 quarterly financials and its investment in First Capital Retail, which has filed for Chapter 11 bankruptcy protection.

Davi is a real estate broker with Keller Williams in Carmel, California where he works as a member of the Monterey Peninsula Home Team on real estate sales. He is also a principal at A.G. Davi Property Management, a company owned by his family for three generations. With Davi’s addition to the First Capital Investment Corp. board, it is now comprised of four members, three of whom are independent.

From 2004 to 2011, Davi served as the 22nd commissioner of real estate for the State of California and helped pass legislation relating to unscrupulous loan modification schemes. He is a past member of the board of directors for the California Association of Realtors and previously served as president of the Monterey County Association of Realtors.

Davi currently serves as a member of the board of directors of Seneca Center, a nonprofit that offers community-based and family-based service options for emotionally troubled children and their families.

In other company news, First Capital Investment Corporation disclosed that it is working to regain compliance with its periodic reporting requirements and expects that its new independent accounting firm, MaloneBailey LLP, will file first quarter 2017 financials within the next 30 days and second quarter financials within 60 days.

Its former public accounting firm, RSM US LLP, was recently dismissed for what it believes is a disagreement on a financial statement disclosure relating to First Capital Retail LLC, a formerly affiliated entity that owns and operates 15 franchised Cinnabon food stores throughout California.

First Capital Investment Corporation disclosed that First Capital Retail filed for Chapter 11 bankruptcy protection on September 15th. First Capital Investment Corporation, which was not listed as a creditor on the bankruptcy filing, said that it had no advance notice of the filing, which it believes is incomplete and possibly inaccurate.

The BDC said that it is working with bankruptcy counsel to determine the circumstances that prompted the bankruptcy filing and to assess the impact, if any, the filing has on the loans it holds with First Capital Retail.

First Capital Investment Corporation is planning to sell its investments in First Capital Retail “as soon as reasonably practicable” and does not believe that the bankruptcy filing will impede those efforts or impact the terms or value of a sale transaction.

As previously reported by The DI Wire, CEO and president Pat Clemens resigned from the company in mid-September and was replaced in an interim capacity by Suneet Singal and John Fields, while Dr. Bob Froehlich was named as chairman of the board.

First Capital Investment Corporation is a $500 million offering that seeks to invests in private U.S. small- and middle-market companies. The company has invested approximately $6.64 million in seven portfolio companies and has raised approximately $6.1 million in investor equity.

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