Freedom Capital to invest in private firms supporting U.S. economy, security via stock proceeds

By Toni Weeks

San Luis Obispo, Calif., March 3 – Freedom Capital Corp. plans to sell its common shares in a public offering, according to an N-2 filing with the Securities and Exchange Commission.

The externally managed, non-diversified, closed-end management investment company seeks to generate current income and long-term capital appreciation by investing primarily in debt and equity securities of private U.S. small- and middle-market companies.

The company plans to invest according to principles that seek to enhance the economy and security of the United States and its allies. Potential investments will be screened based on the company’s “Patriotic Responsible Investing” principles. Entities that fit within this framework typically provide the U.S. and its allies with one or more of the following benefits: independence from foreign political and economic coercion, freedom to pursue constitutionally protected activities, protection from foreign state-sponsored and private acts of terror, ability to obtain data and intelligence to defeat acts of war terror or aggression, defense against acts of war and aggression and facilitation of a democratic economy where capital is allocated without undue social or bureaucratic intervention.

The portfolio will be comprised primarily of investments in senior secured loans, second-lien secured loans, subordinated debt, common equity and preferred equity of private U.S. small- and middle-market companies.

Jeff McClure is the portfolio manager.

The company is offering on a continuous basis up to 50 million common shares at an initial offering price of $10.00 per share through dealer manager Democracy Funding LLC.

The sales load is 10%. Including a base management fee of 3%, total annual expenses are expected to be 6.2%.

Arlington, Va.-based Freedom Capital Investment Advisors LLC is the investment adviser.

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