ADFA Announces New Venture Capital Firm Serving Arkansas Entrepreneurs

LITTLE ROCK, Ark.--(Business Wire)--
The Arkansas Development Finance Authority (ADFA) announced today
that its Arkansas Institutional Fund (AIF) has committed to a $4.5
million investment in Petra Growth Fund II, managed by Petra Capital
Partners of Nashville, Tennessee. As a result, Petra Capital Partners
will seek investment opportunities in growing Arkansas companies in
the healthcare business and information services sectors. Arkansas
companies in those sectors may benefit by contacting Petra
(www.petracapital.com).

Gene Eagle, Vice President of ADFA, said, "Our team worked closely
with Petra Capital Partners to make sure Petra and the Arkansas
Institutional Fund receive full benefit of the SBA leverage available
to their fund. By utilizing the SBA's venture capital program Petra
will be able to more than double the available capital they have to
invest."

Mike Blackburn, Petra Managing Partner, said, "We look forward to
working with Arkansas entrepreneurs. We believe there are companies
here with whom we can partner to accelerate their growth. We will be
looking hard to find them and to help them realize their full
potential."

In addition to Petra Capital Partners, ADFA, through its Arkansas
Institutional Fund, has entered into similar agreements with Noro
Moseley Partners (www.noro-moseley.com), MB Venture Partners
(www.mbventures.com), Prolog Ventures (www.prologventures.com),
Meritus Ventures (www.meritusventures.com), SSM Partners
(www.ssmventures.com) and the Fund for Arkansas's Future
(www.arkansasfund.com).

Arkansas entrepreneurs are invited to visit these websites for
more information.

ABOUT THE ARKANSAS DEVELOPMENT FINANCE AUTHORITY

The Arkansas Development Finance Authority (www.state.ar.us/adfa)
is committed to responding to the changing needs of Arkansas' growing,
increasingly diverse population and business community. Since its
creation in 1985, ADFA has become the state's largest source of
low-cost financing for low-to-moderate income housing development,
small industries, government, education, agricultural business
enterprises and healthcare. Through the issuance of taxable and
tax-exempt bonds and notes, the administration of private and public
grants and partnerships with state and federal agencies, ADFA gives
Arkansans the most cost-effective financing choices possible. In 2001,
bond guaranty legislation was modified to allow ADFA to utilize credit
enhancement and state tax credits to finance "fund of funds" venture
capital investments. At this time the $70 million Arkansas
Institutional Fund (AIF) was created.

ABOUT THE ARKANSAS INSTITUTIONAL FUND

In an effort to strengthen the venture capital network in Arkansas
and promote economic growth within the State, the Arkansas
Institutional Fund (AIF) is authorized to invest in professionally
managed venture capital funds that in turn make risk capital more
accessible to promising Arkansas firms.

ABOUT CIMARRON CAPITAL PARTNERS

Cimarron Capital Partners (www.cimarroncapital.com) is a leading
national investment management firm specializing in regional private
equity. The firm is the fund manager for the Arkansas Institutional
Fund.

ADFA
Gene Eagle, 501-682-5905
or
Petra Capital
Mike Blackburn, 615-313-5999
or
Cimarron Capital
Michael Tharp, 501-223-3284

Copyright Business Wire 2008