Banking on CELoCs

Peter Fry has launched Burrill & Co.'s new alternative equities group, which will offer committed equity lines of credit. He told Ebb & Flow the CELoCs are similar to the committed equity financing facilities (CEFFs) he did previously as senior investment officer for Kingsbridge Capital.

At Kingsbridge, Fry played a role in 35 CEFFs worth more than $1.75 billion for healthcare companies. Like CEFFs, CELoCs are a commitment to purchase small increments of shares, usually over a few years. They are exercised solely at the company's discretion and are typically used to provide assured access to capital...