Dallas-based Hicks, Muse, Tate & Furst Incorporated will launch a national minority-controlled private investment firm that will be headed by John Ware, who recently resigned as city manager of Dallas to become operating principal of the new enterprise. The firm, whose name has not been selected, will focus on acquisitions of and investments in medium-size companies and in real estate. It will target opportunities where value can be increased through improved and expanded operations and add-on acquisitions. In addition, the firm will pursue investments in underdeveloped areas, such as the southern sector of Dallas.

Thomas O. Hicks, chairman and chief executive officer of Hicks Muse, and Ware noted the opportunity to acquire and invest in companies that provide products, services or management to the nation's growing minority population has huge potential.

"We see this as a sensible, strategic alliance for Hicks Muse. It's a business opportunity in areas of the economy that have not been top-of-mind for investors,'' Hicks said. "John Ware's expertise, financial acumen, intellect, and integrity make him the perfect leader for this new firm.''

Ware said the new firm will use the Hicks Muse reputation and track record to attract both investors and opportunities to invest in companies through transactions ranging in value from $25 million to $100 million.

"This is a chance to practice what I have been preaching for the last 20 years,'' said Ware, who has long advocated private investment in urban areas as a way to revitalize cities. "It will be a firm with an important mission backed by one of the nation's top investment groups. We will utilize the same 'buy and build' strategy that has been so successful for Hicks Muse.''

Ware notified the mayor and city council about his resignation June 4. He noted he has served five years at the helm of Dallas city government, the longest term since George Schrader was city manager from 1972 to 1981. Ware was named the nation's top city manager in 1994. Dallas is the nation's largest city operating under a council-manager form of government.

The passage of the Trinity River bonds, the acquisition of new capital for southern Dallas, and the conclusion of the downtown arena negotiations were ranked by Ware as major highlights of his term. He also underlined the acquisition of the Nasher Collection for a downtown sculpture garden, the completion of construction of the African-American Museum, and his involvement in the initiation of the Hispanic Cultural Center.

As city manager, Mr. Ware negotiated a $1.4 billion mortgage assistance program with the Federal Home Loan Mortgage Corporation, commonly known as Freddie Mac. He also secured a $4 billion housing assistance plan from Fannie Mae.

Since its formation in 1989, Hicks, Muse, Tate & Furst Incorporated has completed or currently has pending more than 200 acquisitions with a total capital value of approximately $28 billion. Headquartered in Dallas, the firm also has offices in New York, St. Louis, Mexico City, and Buenos Aires.