Proxy Monitor received a $2 million loan with equity participation from the Carl Marks Group and Sterling/Carl Marks Capital, making the investors significant minority equity holders in the proxy-voting advisory firm.
Robert Davidoff, managing director of Carl Marks, who would not disclose the amount of the investment, said the two groups may make further investments, although there is no timetable. Proxy Monitor will expand its board to accommodate two people from Carl Marks, including Mr. Davidoff, as directors.
James E. Heard, Proxy Monitor CEO, said the company will use the capital to "accelerate growth of the firm in complementary areas, including acquisitions. Mr. Heard declined to say how much equity the new investors will receive. Except for the new capital, Proxy Monitor is owned by its directors and outside individuals
Mr. Davidoff said the money of Carl Marks and Sterling/Carl Marks is internal and doesnt come from institutional investors. Partners in Carl Marks own 50% of Sterling/Carl Marks, he said.
Richard Dorfman, managing director of Richard Alan Inc. and a director of Proxy Monitor, initiated the contact between the firm and new investors.