HispanicBusiness

PHOENIX, Oct. 2 /PRNewswire-FirstCall/ -- Delivering on their promise of advancing Hispanic business across the country, the U.S. Hispanic Chamber of Commerce (USHCC) and Bank One Corporation ceremonially announced the funding of Hispania Capital Partners at the USHCC National Convention. The fund -- the first national fund focused solely on Hispanic businesses -- evolved from an alliance of the USHCC and Bank One created in 2000.

(Logo: http://www.newscom.com/cgi-bin/prnh/20030116/NYTH053LOGO )

The fund made its first equity investment just last month in PrensAmerica Corp., a 33-year-old Chicago company formerly known as Rossi Publications, Inc. PrensAmerica publishes La Raza, Chicago's leading Spanish language newspaper and the largest circulated Spanish language Sunday newspaper in the nation. It remains Hispanic owned and operated.

"As our first major investment, La Raza meets practically all of our criteria, including attractive growth potential for our investors, a valuable product for our community and a significant financial commitment to inner city economic development," said Carlos Signoret, a partner at Hispania Capital Partners who has nearly 25 years of experience in investment banking and capital markets.

Hispania is actively seeking to invest nearly $70 million in companies with annual sales of $10 million to $200 million. It can also leverage its capital with loans guaranteed by the U.S. Small Business Administration that are twice the size of the capital investment, because Hispania is licensed by the SBA as a Small Business Investment Company.

"Hispania Capital Partners is an excellent example of how the USHCC is creating bridges for growth between the Hispanic entrepreneur and the national economy," said USHCC President and CEO George Herrera. "Their investment in PrensAmerica exemplifies how infusing capital into already successful Hispanic businesses supports the community overall."

Bank One stepped up with the first investment commitment -- up to $5 million -- and provided initial financing in the early stages of the fund's formation. Bank One also assisted the USHCC in recruiting additional investors. The investment banking firm of Duff & Phelps LLC is providing support and technical assistance through its joint venture agreement with Hispania.

"The support, expertise and recruitment of other investors by Bank One and the U.S. Hispanic Chamber of Commerce has been essential in bringing this fund to reality," Signoret said.

"We know the importance of supporting our communities, whether it's through bilingual employees, banking services, business loans or investments," said Pete Gillespie, senior vice president in Bank One's Middle Market Banking and a member of the fund's advisory board. "We know the fund will provide inspiration for the thousands of Hispanic small businesses served by banks like Bank One across the country."

Over the next five years, the Hispanic population is projected to grow five times faster than the overall U.S. population. Bank One has focused on Hispanic initiatives, such as the fund, because of the substantial Hispanic population in seven key markets Bank One serves: Chicago, San Antonio, Houston, Dallas, Phoenix, Denver and Tucson.

The fund bases its investment decisions on four primary criteria: -- Management: Business leaders and managers with extensive industry and operational experience are the top priority. -- Market: The market must have good long-term growth prospects and have large enough potential revenue. -- Product: The product or service must have a sustainable competitive advantage. -- Realization of gains: Managers must recognize that the fund's eventual exit strategy may include strategic sales, a merger or a public offering. Hispania Partners usually will seek a return on its investment three to five years after its initial investment.

Hispania Capital Partners is the leading private equity investment firm investing equity capital in companies that benefit from the demographics of the U.S. Hispanic marketplace. It invests in high-quality companies and serves as their financial and strategic partner. Information about the fund is available through Hispania Capital Partners LLC, 311 S. Wacker, Chicago, IL 60606 or by calling (312) 697-4600 or online at http://www.hispaniapartners.com/ .

Bank One is the nation's sixth-largest bank holding company, with assets of more than $300 billion. It can be found on the internet at http://www.bankone.com/ . Photo: http://www.newscom.com/cgi-bin/prnh/20030116/NYTH053LOGOAP Archive: http://photoarchive.ap.org/PRN Photo Desk, +1-888-776-6555 or +1-212-782-2840 Bank One Corporation

CONTACT: Maria Ibanez of USHCC, +1-202-842-1212, mibanez@ushcc.com ;Carlos Signoret of Hispania Capital Partners, +1-312-697-4595; or Mary JaneRogers of Bank One, +1-602-221-4878, maryjane_h_rogers@bankone.com

Web site: http://www.hispaniapartners.com/http://www.bankone.com/