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Sun Mountain Capital takes equity stake in ETP firm (exchange traded products) Teucrium Trading LLC

Monday, June 27, 2011

Sal Gilbertie
Opalesque Industry Update Teucrium Trading LLC, which has entered the ETP space with next-generation single-commodity ETPs announced on Monday that venture capital and private equity firm Sun Mountain had made an investment into the Santa Fe firm. Teucrium launched one year ago in June 2010 with the CORN ETP and $5m in AUM (See past coverage here). The firm has since risen to $131m in assets across its three products traded on the NYSE ARCA: CORN Fund, NAGS Fund (natural gas) and CRUD Fund.

With Sun Mountain Capitals purchase of a minority equity interest in Teucrium, Teucrium has acquired a strategic partner and enhanced its ability to bring more ETP products to the market, more quickly, and more effectively, Sal Gilbertie, President and founder of Teucrium Trading, LLC, told Opalesque. The firm expects to have three additional funds approved and listed by the end of this summer, SOYB (soybeans), CANE (sugar) and WEAT (wheat).

We are very excited by this investment in Teucrium and see it not only as an endorsement of our business model, but also a reflection of surging interest in next-generation commodity ETPs. said Gilbertie. The firms single commodity focus, and ETP structure is focused on making futures trading more accessible to pension funds, hedge funds, institutional and individual investors who seek to increase their commodities exposures.

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