Sachs Capital launches investment vehicle?

Sachs Capital – Skye LLC launched a $1 million direct equity offering and successfully placed 10% with two investors. The company is looking for at most 36 additional investors. However this offering is unusual as the company is classified as Banking and Financial Services – Investing. Sachs Capital is a niche private equity boutique that focuses on small investments in local businesses. The firm lead by Andrew Sachs raised in 2007 Sachs Capital Fund I LLC (Fund I) which had a $40 million hard cap.

Founding a company/vehicle for each investment is a technique used by small firms to attract “smaller” investors and avoid the cumbersome commitment period that non-institutional investors can hardly afford.  It is unclear if the firm is moving toward investing in a new company via Sachs Capital – Skye LLC or if it is off-loading an investment to create an exit/realization event for Fund I. None of the disclosed investments seemed to point in that direction. In any case, classifying the company as Pooled investment fund would have been more appropriate.

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