Growing Firm Seeks Capital for Marketing : Expansion: Children’s toiletries maker William & Clarissa Inc. of Laguna Hills has hired an investment banker to help find money to expand its promotion and sales effort.

William & Clarissa Inc., a fledgling maker of children’s toiletries, said Thursday that it has hired an investment banker to raise additional capital to support its growing marketing efforts.

The company, which sells a full line of children’s products--from tear-free shampoo to cologne--under the Kids William & Clarissa label, said it had hired The First Boston Corp. to explore ways to raise the needed cash. The alternatives include “seeking a corporate partner or private placement to institutional investors,” the company said.

Within the past year, the company has grown rapidly and its products are now being sold in more than 16,000 supermarkets, drugstores and other retail outlets. With the bulk of the distribution effort finished, President Mary George said the company now needs to promote the line more.

The company has advertised in parenting magazines, she said, but wants to expand with more full ad campaigns in some areas. She said the company hopes to raise $5 million to $10 million within the next four months to support a campaign that would include television advertising.

“We are doing an advertising test in a few markets,” she said. “We need additional capital to build on the momentum.”

The company said that First Boston will act as financial adviser in an effort to maximize shareholder value. William & Clarissa’s stock closed Thursday at 75 cents, down 25 cents in trading on the over-the-counter market.

A San Francisco area businessman founded the company several years ago, naming it after his own two children. The firm sold its products to department stores. When George and her management team moved to the company last year, they decided to move into the mass market as well.

The company raised $5.7 million and developed a line that appealed to parents as well as children. The products are hypoallergenic, contain no animal ingredients and are not tested on animals. Research showed that many parents wanted higher quality for their children, and that children want their own distinct products.

The Kids William & Clarissa line consists of 16 personal care products, including shampoo, liquid soap, cornstarch powder, bubble bath, sun block, lip balm and cologne. George said that the tear-free shampoo has been the biggest seller.