Rustic Canyon Funds Newspapers

A Texas-based Latino newspaper group has received an $18-million investment from a pair of venture and equity firms including Rustic Canyon Partners of Los Angeles.

The funding, announced Sunday, is to be used by Meximerica Media, publisher of the Rumbo chain of Spanish-language newspapers, to complete development of papers serving the Austin, Houston, San Antonio and Rio Grande Valley regions of Texas and to launch additional Rumbo papers in that state.

The newspapers’ name translates as “on the way” and is a play on the phrase “rumbo al norte” -- literally, heading to the U.S. -- which translates as “heading toward a better life.”

Rustic Canyon, with more than $700 million under management, focuses on media, technology and business services. The firm was established in 1999 to invest some of the funds created by the recapitalization of the former Times Mirror Co., owner of the Los Angeles Times, which now is owned by Tribune Co.

Rustic has partnered with Pinto America Growth Fund of Houston to lead investors providing financial support to San Antonio-based Meximerica.