Blackhawk Capital Group BDC, Inc. Announces Investment in MacroMarkets LLC

Jan 13, 2009, 13:01 ET from Blackhawk Capital Group BDC, Inc.

NEW YORK, Jan. 13 /PRNewswire-FirstCall/ -- Blackhawk Capital Group BDC, Inc. (OTC Bulletin Board: BHCG.OB), a business development company registered under the Investment Company Act of 1940 ("Blackhawk"), announced that on January 12, 2009, Blackhawk entered into a Voting Capital Interests Purchase Agreement ("Purchase Agreement") with MacroMarkets LLC, a Delaware limited liability company ("MacroMarkets"). Pursuant to the Purchase Agreement, Blackhawk purchased a five percent (5%) membership interest in MacroMarkets for $250,000 and Craig A. Zabala, Chairman and President of Blackhawk, was appointed a non-voting board member of MacroMarkets. The Purchase Agreement contains standard representations, warranties and indemnification provisions. The transaction closed on January 12, 2009. Blackhawk used funds from working capital to make the equity investment.

MacroMarkets LLC

Craig A. Zabala, Chairman and President of Blackhawk, stated: "We are very pleased that our investment in MacroMarkets LLC is our first portfolio investment. MacroMarkets LLC is the parent company founded by Robert Shiller, Sam Masucci and Allan Weiss in 2002 to develop financial products and new risk management tools on assets that are difficult to own and hedge. Macro Financial, a FINRA member broker dealer, is a subsidiary of MacroMarkets that provides sales and marketing support for Macro Securities Depositor, Macro Inflation Depositor and Macro Housing Depositor, which use proprietary product structures to deliver performance on commodities, inflation and real estate."

Mr. Zabala further stated: "MacroMarkets holds patents for MacroShares(R), an exchange-traded product family whose unique structure can be applied to asset classes that can be reliably indexed. MacroMarkets was a key catalyst in launching the U.S. house price futures and options markets on the Chicago Mercantile Exchange (CME) in 2006, and with their partners at Fiserv Inc. and Standard & Poors, in establishing the S&P/Case-Shiller Home Price Indices as the globally recognized benchmark for U.S. home prices. Robert Shiller and Chip Case co-founded Case-Shiller Home Price Indexes based on the fundamental designs of the S&P 500 equity index. Sam Masucci, the CEO of MacroMarkets, and Robert Shiller, the Chief Economist of MacroMarkets, are currently working on additional products in the real estate market."

Safe Harbor Statement

Information contained in this release, other than historical information, should be considered forward-looking, and may be subject to inherent uncertainties in predicting future results and conditions. These statements reflect Blackhawk's current beliefs and are subject to a number of risk- factors, including: general economic and investment conditions which affect Blackhawk and its operations (including its portfolio company); need for equity capital and no assurance it can be obtained; valuation and illiquid nature of any portfolio investments; high degree of risk from investing in private companies; the regulated environment in which we operate; and the competitive market for investment capital and opportunities. Please see Blackhawk's Form 10-K for the fiscal year ended December 31, 2007, and its Form 10-Q for the fiscal quarter ended September 30, 2008, previously filed with the Securities and Exchange Commission, for a detailed discussion of the risks and uncertainties associated with Blackhawk's business. Except as otherwise required by Federal securities laws, Blackhawk undertakes no obligation to update or revise forward-looking statements for new events and uncertainties.

    Blackhawk Capital Group BDC, Inc.
    Dr. Craig A. Zabala
    President and Chief Executive Officer
    (212) 566-8300

SOURCE Blackhawk Capital Group BDC, Inc.