Welcome To
Paladin Capital Group
About Paladin Capital Group Portfolio Companies
Paladin III, L.P.
Paladin III invests in enterprises whose principal business centers on products and services that address homeland security issues and needs. The Fund's first priority will be to invest in existing companies with immediate solutions designed to prevent harmful attacks, defend against attacks, cope with the aftermath of an attack or disaster and recover from terrorist attacks and other threats to homeland security. The investment objective of the Fund is to generate superior long-term capital appreciation, typically through privately negotiated equity and equity-related transactions in private and, in certain cases, public companies.
Adapx, Inc.
In November 2007, Paladin co-led a $10 million
Series A round in Adapx with OVP Venture Partners. Adapx sells software products that enable users in field environments to improve the accuracy, speed, reliability, and usability of their data capture. Their products let users take notes (converting them to digital text format), fill forms, and mark up maps and diagrams away from the computer, using digital pen and paper. By allowing users to keep their established business practices, digital pen and paper offers an easily adopted and effective solution for capturing, saving, updating, and sharing handwritten information. Essentially, any business process or workflow that uses pen and paper can be digitally enabled by the Adapx platform. The Company’s proprietary software allows users to automatically and digitally integrate their collected field data into leading applications such as ArcGIS, AutoCAD, Visio, Excel, PowerPoint, and Data Form applications. This ability is a significant breakthrough in the mobile field worker technology arena. Adapx’s solution allows customers to more effectively prevent, defend against, cope and recover from natural events or internal and external attacks on our country’s critical infrastructure (i.e., public utility grids).
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http://www.adapx.com
Digital Bridge Communications
In December 2007, Paladin led the $20 million
Series B preferred stock financing of DigitalBridge
Communications. DigitalBridge Communications provides broadband wireless services (including high-speed data, voice over IP, and locally-hosted community content) to consumers and businesses in underserved rural, suburban, military, and university communities. It utilizes WiMAX technology to provide reliable, portable high-speed connections anywhere in its service area and is an alternative to traditional DSL, cable modem, and satellite services. In addition, DBC maintains a strong commitment to work with local communities and schools to make broadband services and content available to those residents and students who are often left behind. The WiMax technology serves the homeland security market by providing a communication network that is resilient, can be deployed (or redeployed) rapidly and in harsh and diverse conditions to provide reliable and secure voice, video and data communications.{top}
http://www.digitalbridgecommunications.com
Initiate
In June 2008, Paladin led a $20 million Series F
preferred stock offering for Initiate Systems Inc. Initiate based in Chicago, IL is a leading provider of master data management (“MDM”) software, which enables organizations to strategically leverage and share critical data assets. The company’s Master Data Management software and experience as an information exchange leader provides organizations with complete, highly accurate and real-time views of data spread across multiple systems or databases, even outside organizational firewalls, allowing companies to unlock the value of data assets for competitive advantages or operational improvements. The company has established itself as a leader in the healthcare market and has been rapidly expanding into other verticals, especially public sector (state/local and federal government organizations) and financial services. {top}
http://www.initiatesystems.com
Luminus Devices, Inc.
In April 2008, Paladin participated in the $72
million Series preferred stock financing of Luminus
Devices. Luminus Devices, Inc. develops and manufactures
high performance solid state light sources for a
variety of illumination applications, including high
definition TVs, video projectors, avionics displays,
and lighting systems. Its patented PhlatLight®
(Photonic Lattice) LED products are the brightest
and most versatile solid-state light sources
available today and are enabling innovative products
and applications never before possible. Luminus
Devices’ headquarters and primary manufacturing
facilities are located in Billerica, Massachusetts,
U.S.A.
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http://www.luminus.com
and http://www.phlatlight.com.
Modius, Inc.
In May of 2009, Paladin led the $7 million Series
B round in Modius. Modius sells software for the
collection and analysis of data relating to energy
consumption in the data center. The Company’s
product helps improve the efficiency of large data
centers by enabling customers to make better
decisions both in implementing and operating their
data centers. Improving the availability of data
centers is critical to maintaining ongoing business
operations, not only throughout the commercial
sector, but more important within the intelligence
community, which operates some of the largest data
centers in the United States. According to EPA
estimates, 10% of the data centers in the US are
managed by the federal government, and all data
centers account for 2-3% of the nation’s electricity
consumption today. Improving their efficiency can
have a meaningful impact on overall energy usage,
thus reducing energy consumption and, in turn,
reducing fossil fuel consumption. HP is a key
partner for the product, and the HP Nonstop field
sales force is actively selling the product. Modius
is presently searching for additional investors to
join this round.
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http://www.modius.com
Paladin Ethanol Acquisition, LLC
In March 2009, Paladin led an investment of $6.2
million in a newly formed entity Paladin Ethanol
Acquisition (PEA). Paladin III has created PEA to
acquire deeply discounted ethanol facilities and
infrastructure in the United States, beginning with
the acquisition of a dry-mill 54 million gallon per
year (MGY) ethanol production facility located in
Lima, Ohio. The plant originally started up in July
2008 and encountered a number of mechanical and
operational difficulties that prevented the facility
from operating consistently at nameplate capacity to
produce on-spec fuel grade ethanol. Ethanol demand
is expected to increase significantly over the next
six years, from approximately 9.2 billion gallons
per year (BGY) produced in 2008 to 15 billion
gallons of conventional (corn-based) ethanol by
2015. Demand is expected to be driven by a variety
of factors including requirements passed into law by
the Energy Independence and Security Act of 2007 and
the Renewable Fuels Standard (RFS). Current and
planned ethanol capacity will be unable to satisfy
RFS requirements. The facility in Lima was purchased
through a bankruptcy sale process and will represent
the first of PEA's purchases.
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QuantaLife, Inc.
In June 2008, Paladin led the $1 million seed
round to support QuantaLife’s spin out of technology
from Lawrence Livermore National Laboratory. The
Company’s innovative polymerase chain reaction (PCR)
technology and expertise in micro fluidics led to
the prototype of a rapid, accurate in vitro device
that will be used in laboratories, clinics and
hospitals to diagnose viruses, diseases, or
pandemics. Rapid, cost-effective PCR technology can
be used to accurately assess patients, rather than
traditional diagnosis of patients by gauging
qualitative symptoms. This breakthrough will lead to
more effective personalized assessment of a patient
without the need for lengthy lab testing.
QuantaLife’s products have the capability to address
the rapid detection and monitoring of disease,
pandemics, or bio terrorism attacks to prevent
widespread transmission and rapid treatment. The
Company is headquartered in Livermore, CA and is in
the process of closing a Series A Preferred
financing round. The Livermore, CA based Company
currently employs 8 people including some of the
nation’s experts in micro fluidics and PCR
technology.
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http://www.quantalife.com/
Renewable Energy Products
In December 2007, Paladin invested in Renewable
Energy Products, LLC (REP), a developer, builder and
operator of biodiesel production facilities. REP is building a network of medium-scale biodiesel production facilities throughout the United States. Biodiesel is a renewable, alternative fuel similar to conventional diesel or petro-diesel that is non-toxic and bio-degradable and can be used as a direct substitute for petro-diesel in most standard OEM diesel engines with few or no modifications to the engine or the fuel system. Paladin believes that diversification of nation’s energy supply away from imported fossil fuels can reduce America’s vulnerability to disruptions in energy supply as well as our dependence in imported energy sources. REP’s first plant, based in Southern California, became operational in 2008.
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http://www.rep-la1.com
Royalty Pharma
Royalty Pharma invests in pharmaceutical and biotechnology product royalties and other revenue-producing intellectual property. Royalty Pharma currently owns a diversified portfolio of royalties in 22 products: 16 leading approved and marketed pharmaceutical and pharmaceutical products, 5 products in Phase II clinical trials and/or under review with the FDA and one product in early stage of clinical development. The development of critical care treatments, therapies and vaccines for life-threatening diseases, viruses and other ailments form on of the cornerstones of the “cope” and “recover” aspects of Paladin’s homeland security investment strategy. Royalty Pharma could potentially use Paladin’s investment funds to acquire interests in other treatments for various epidemic/pandemic diseases including those that could intentionally be used for bioterrorism. Neupogen/Neulasta, one of the largest products in Royalty Pharma’s current collection is a critical key medical countermeasure in the nation’s defense against terrorism in the event of a nuclear or radiological attack, such as a dirty bomb. Importantly, the drug has been granted special approval by the FDA for deployment in the event of an emergency. Accordingly, the product is a vital tool in the defense of the nation, and is the only treatment currently held in the Strategic National Stockpile for treating Acute Radiation Sickness in the event of a mass casualty event.
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http://www.royaltypharma.com
Unitrends
In March 2008, Paladin led a $9.5 million Series
C financing for Unitrends Corporation. Unitrends Security Corporation Inc., based in
Columbia, South Carolina, provides disk-based backup
appliances (replacements for existing tape backup
devices) for small and medium businesses, as well as
an online backup service to backup data over the
public internet to a remote datacenter. These
products and services enable businesses to recover a
single file or an entire server rapidly in the event
of a catastrophic loss. An entire server that is
destroyed can be completely recreated and made
operational on a new machine with no previously
installed software in about an hour. As business
processes and communications become increasingly
dependent upon servers, the ability to recover
quickly in the event of disaster is an important
component of homeland security.{top}
http://www.unitrends.com
Vital Renewable Energy Company, LLC.
In October 2008, Paladin led the Series B round alongside co-investors Vision Brazil Investments, Leaf Clean Energy Company, Petercam Asset Management and PCG Clean Energy & Technology Fund. VREC is a newly-formed company headquartered in Brazil that will make investments in a fully diversified biofuels platform, primarily focused on new build ethanol facilities with developed agricultural plans, improvements on and/or expansions of existing ethanol facilities and acquisitions of existing, capital-challenged ethanol facilities. Brazil is a leading global producer of ethanol and enjoys superior economics versus other worldwide sugarcane and ethanol producing nations. The country’s favorable climate, soil, topography, scale and infrastructure provide its sugarcane-based ethanol industry with a sustainable competitive advantage. Ethanol is currently used in Brazil as both a fuel additive and as a complete substitute for gasoline for the growing national fleet of flex-fuel vehicle cars, which operate using ethanol or gasoline (or a mixture of both).The Company is currently is in the process of acquiring debt financing to build out the first facility and employs 9 people in Brazil. {top}
http://www.vrec.com.br
WiSpry, Inc.
In March 2009, Paladin led the $10 million Series
C round alongside L Capital Partners, Blueprint
Ventures, American River Ventures, InQTel, NTT
DoCoMo and Murata Ventures. WiSpry was founded in
2002 as a spin-out of radio frequency (RF) systems
design firm, Coventor. The Company designs, develops
and markets RF semiconductor components for the
wireless communications industry and is addressing a
well known, long standing and increasing need for
tunable RF components for portable wireless
communications. The market opportunity for tunable
RF components is large and growing. The addressable
market sectors include mobile handsets, laptops,
ultraportable PCs and wireless base stations. In
aggregate, these sectors represented a total
available market of over 1.5 billion units in 2008,
with over two-thirds of that volume in the mobile
handset segment. WiSpry also offers significant
communications advantages for the war fighter and
emergency first responder. The core technology
offers up to 40% extension in mission duration
(i.e., battery life) and nearly 2X the mission range
without upgrades in the communication
infrastructure. {top}
http://www.wispry.com/