News

U.S. Growth Funds Realizes Gain on Exit of A&W and Long John Silvers Restaurant Investments

FORT WORTH, TX – June 18, 2002 – The U.S. Growth Funds Corporation (USGF), (formerly known as KBK Capital Corporation), announced today that it successfully exited its investments in Yorkshire Global Restaurants, Inc., owner of Long John Silvers and A&W Restaurants, including redemption of U.S. Growth Funds’ warrant position.  U.S Growth Funds will recognize the majority of this gain during the second quarter ending June 30, 2002, and the remainder will be recognized as and when certain normal and usual deal contingencies are cleared. 

Yorkshire has been acquired by Yum! Brands, Inc. (formerly known as Tricon Global Restaurants, Inc.), owner of fast-food heavy weights Kentucky Fried Chicken, Taco Bell and Pizza Hut brands. 

USGF co-invested with Provident Bank in November 1999, providing the capital to fund Long John Silvers’ acquisition of the A&W Restaurant chain.

This is our fifth exit since the formation of our Mezzanine & Private Equity Group in May of 1998.  During this period, U.S. Growth Funds has realized attractive compounded annual returns across its exited investments.

“U.S. Growth Funds’ ability to exit investments in today’s challenging market environment is a compelling demonstration of the integrity and power of our approach to the private equity business,” said Managing Director Bobby McGee. “We continue to serve the capital needs of middle market businesses and build a solid track record of capital appreciation for our shareholders.”

USGF is a private equity fund and equity investor in management and employee buyouts; invests in private equity sponsored buyouts, provides capital directly to private and small public companies. USGF provides capital to fund growth, acquisitions, going-private transactions and recapitalizations.