LA Investment Capital of Beverly announces it will suspend all third party fee retainers effective immediately.

FOR IMMEDIATE RELEASE
(Free-Press-Release.com) February 23, 2010 --

LA Investment Capital’s President, Steven J. Muehler said “the whole concept of the due diligence fee is simply a cost cutting measure whereby we have a potential investment cover the cost of analyzing the company, and paying legal, processing and any third party costs incurred by the potential venture. Unfortunately, when an investment does not materialize for whatever reason, this upfront fee paid by the company of the potential investment becomes a sore spot, and understandably so, especially in today’s economy. In theory, passing on costs to another entity was good in theory, but unfortunately we have to pass on the majority of investments we really get a chance to look at, and some investments do not happen simply due to an ongoing slump in the economy.”

“At the end of the day we set out to have a reputable company, and the right thing to do now is to sit down, go through everything and simply cease this business practice and to contact those companies we passed on in the past and make arrangements for a complete refund of their due diligence fee, a process that is to begin immediately. I cannot guarantee you that in the next two or three weeks all the refunds will have been processed, we to are a company operating in a tough economy, but as long as the returns come from LAIC’s pockets and not the pockets of our investors, I think it is fair and the right thing to do.”
LA Investment Capital, a Beverly Hills based corporation, specializes in early stage venture capital investments in the Energy, Biofuels, Mineral Rights, Real Estate and Oil & Natural Gas markets. LA Investment Capital has been steadily emerging as a new player in the venture capital market, with complete third party accounting of all of its investment fund assets and a complete third party legal structure that represents the best interest of the investors associated with each private equity investment fund.

“Returning all the upfront third party fees paid over the last year is going to hurt a bit, but this will have no impact on the investors associated with anyone of our investment funds as not one dime of our investor dollars will be used for this. We are subject to a complete third party accounting system with a CPA firm here in LA, and at any time this can be verified. “

Former companies associated with LA Investment Capital that have paid an “upfront third party fees retainer” that have not been contacted by a member of LA Investment Capital are asked to call the Beverly Hills office or send a certified letter to:

LA Investment Capital
9107 Wilshire Blvd., Unit 450
Beverly Hills, CA 90210

Mr. Muehler went on to say, “We hope to have contacted each company by no later than March 5th, 2010 and to have completed the whole process of returning all ‘upfront fees’ by no later than the end of March or early April 2010. I would hope that other companies would follow our lead and cease this practice, as it has given this industry a black-eye, and I am disappointed that our company’s name is associated with that. Though I feel it is not legally wrong to charge the fee, I feel that in today’s economy many companies are simply preying on the fact many start-ups are having a very hard time finding capital, and charging these fees when they simply have no intention of supplying any capital.”


LA Investment Capital
9107 Wilshire Blvd.
Unit 450
Beverly Hills, CA 90210

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