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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 13G
UNDER THE SECURITIES EXCHANGE ACT OF 1934
NOVASTAR FINANCIAL, INC.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(NAME OF ISSUER)
CLASS B PREFERRED STOCK (CONVERTIBLE INTO COMMON STOCK)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(TITLE OF CLASS OF SECURITIES)
669947608 CLASS B PREFERRED STOCK
669947400 COMMON STOCK
. . . . . . . . . . . . . . . . . . . . . . . .
(CUSIP NUMBER)
MARCH 29, 1999
. . . . . . . . . . . . . . . . . . . . . . . .
(DATE OF EVENT WHICH REQUIRES
FILING OF THIS STATEMENT)
Check the appropriate box to designate the rule pursuant to which this Schedule
is filed:
[ ] Rule 13d-1(b)
[X] Rule 13d-1(c)
[ ] Rule 13d-1(d)
Page 1 of 6
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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1 Name of Reporting Persons.
I.R.S. Identification No. of above person (entities only).
Fulcrum Growth Partners, LLC ("Fulcrum")
47-0819413
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2 Check the Appropriate Box if a Member of a Group
(a) [ ]
(b) [ ]
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3 SEC Use Only
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4 Citizenship or Place of Organization
Delaware
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5 Sole Voting Power
714,285 shares of Class B Preferred Stock
Number of . . . . . . . . . . . . . . . . . . . . . . . . . . .
Shares 6 Shared Voting Power
Beneficially
Owned by -0-
Each . . . . . . . . . . . . . . . . . . . . . . . . . . .
Reporting 7 Sole Dispositive Power
Person
With 714,285 shares of Class B Preferred Stock
. . . . . . . . . . . . . . . . . . . . . . . . . . .
8 Shared Dispositive Power
-0-
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9 Aggregate Amount Beneficially Owned by Each Reporting Person
714,285 shares of Class B Preferred Stock
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10 Check if the Aggregate Amount in Row (9) Excludes Certain Shares [ ]
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
11 Percent of Class Represented by Amount in Row (9)
8.1%
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
12 Type of Reporting Person
PN
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Page 2 of 6
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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1 Name of Reporting Persons.
I.R.S. Identification No. of above person (entities only).
McCarthy Group, Inc.
47-0697955
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2 Check the Appropriate Box if a Member of a Group
(a) [ ]
(b) [ ]
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3 SEC Use Only
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4 Citizenship or Place of Organization
Nebraska
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5 Sole Voting Power
814,285 shares of Class B Preferred Stock
Number of . . . . . . . . . . . . . . . . . . . . . . . . . . .
Shares 6 Shared Voting Power
Beneficially
Owned by -0-
Each . . . . . . . . . . . . . . . . . . . . . . . . . . .
Reporting 7 Sole Dispositive Power
Person
With 814,285 shares of Class B Preferred Stock
. . . . . . . . . . . . . . . . . . . . . . . . . . .
8 Shared Dispositive Power
-0-
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9 Aggregate Amount Beneficially Owned by Each Reporting Person
814,285 shares of Class B Preferred Stock
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10 Check if the Aggregate Amount in Row (9) Excludes Certain Shares [ ]
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
11 Percent of Class Represented by Amount in Row (9)
9.2%
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
12 Type of Reporting Person
CO
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Page 3 of 6
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Item 1.
a. Name of Issuer:
NovaStar Financial, Inc. (the "Issuer")
b. Address of Issuer's Principal Executive Offices:
1900 West 47th Place, Suite 105
Westwood, Kansas 66205
Item 2.
a. Name of Person Filing:
Fulcrum Growth Partners, LLC ("Fulcrum") McCarthy Group, Inc.,
("MGI")
b. Address of Principal Executive Office:
Fulcrum Growth Partners, LLC McCarthy Group, Inc.
1125 So. 103rd Street, Suite 450 1125 So. 103rd Street, Suite 450
Omaha, Nebraska 68124 Omaha, NE 68124
c. Citizenship:
Fulcrum: MGI:
Delaware limited liability company Nebraska corporation
d. Title of Class of Securities:
Class B Preferred Stock, par value $0.01 convertible into Common
Stock, par value $0.01
e. CUSIP Number:
Class B Preferred Stock - 669947608
Common Stock - 669947400
Item 3. If this statement is filed pursuant to sections 240.13d-1(b) or
240.13d-2(b) or (c), check whether the person filing is a(n):
a. [ ] Broker or dealer registered under section 15 of the Act (15
U.S.C. 78o);
b. [ ] Bank is defined in section 3(a)(6) of the Act (15 U.S.C.
78c);
c. [ ] Insurance company as defined in section 3(a)(19) of the Act
(15 U.S.C. 78c);
d. [ ] Investment company registered under section 8 of the
Investment Company Act (15 U.S.C. 80a-8);
e. [ ] Investment adviser in accordance with section
240.13d-1(b)(1)(ii)(E);
Page 4 of 6
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f. [ ] Employee benefit plan or endowment fund in accordance with
section 240.13d-1(b)(1)(ii)(F);
g. [ ] Parent holding company or control person in accordance with
section 240.13d-1(b)(ii)(G);
h. [ ] Savings association as defined in section 3(b) of the
Federal Deposit Insurance Act (12 U.S.C. 1813);
i. [ ] Church plan is excluded from the definition of an investment
company under Section 3(c)(14) of the Investment Company Act
of 1940 (15 U.S.C. 80a-3);
j. [ ] Group, in accordance with Section 240.13d-1(b)(1)(ii)(J)
If this statement is filed pursuant to Section 240.13d-1(c), check
this box [X]
Item 4. Ownership
a. Amount Beneficially Owned:
Fulcrum may be deemed to beneficially own 714,285 shares of
Common Stock, par value $0.01, of the Issuer, as a result of the
fact that Fulcrum has acquired 714,285 shares of Class B
Preferred Stock which are convertible into common stock on a one
for one basis. MGI, as Managing Member of Fulcrum, is the
parent company of McCarthy Group Asset Management, Inc. which in
turn has discretionary authority over 100,000 shares of Common
Stock owned by one of its asset management customers. These
shares plus the 714,285 shares of Fulcrum total 814,285 shares
beneficially owned by MGI.
b. Percent of Class:
8.1% for Fulcrum and 9.2% for MGI (as of March 29, 1999, based on
information provided to Fulcrum by the Issuer)
c. Number of shares as to which such person has:
i. sole power to vote or to direct the vote:
See response to Item 4a. above.
ii. share power to vote or to direct the vote:
None.
iii. sole power to dispose or to direct the disposition of:
See response to Item 4a. above.
iv. shared power to direct the disposition of:
None.
Page 5 of 6
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Item 5. Ownership of Five Percent or Less of a Class
If this statement is being filed to report the fact that as of the
date hereof the reporting person has ceased to be the beneficial owner
of more than five percent of the class of securities, check the
following [ ].
Item 6. Ownership of More than Five Percent on Behalf of Another Person
N/A
Item 7. Identification and Classification of the Subsidiary Which Acquired the
Security Being Reported on By the Parent Holding Company
N/A
Item 8. Identification and Classification of Members of the Group
N/A
Item 9. Notice of Dissolution of Group
N/A
Item 10. Certification
By signing below I certify that, to the best of my knowledge and
belief, the securities referred to above were not acquired and are not
held for the purpose of or with the effect of changing or influencing
the control of the issuer of the securities and were not acquired and
are not held in connection with or as a participant in any transaction
having that purpose or effect.
Signature
After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.
Date: April 7, 1999 FULCRUM GROWTH PARTNERS, LLC
By: McCarthy Group, Inc., Managing Member
By:/s/ Richard L. Jarvis
----------------------------------------
Name: Richard L. Jarvis
Title: Secretary/Treasurer
McCARTHY GROUP, INC.
By:/s/ Richard L. Jarvis
-----------------------------------------
Name: Richard L. Jarvis
Title: Secretary/Treasurer
Page 6 of 6
