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Jeffrey Sweeney is an investment banker with years of experience in direct lending and corporate finance for small- to middle-market companies. He is the chairman and CEO of US Capital Partners, an innovator in small- to middle-market business lending. US Capital Partners has been providing prompt, innovative, and reliable financing solutions across the United States and abroad for more than a decade.

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Tuesday
Oct172017

US Capital Partners Expands Its Wealth Management Division

San Francisco-based private financial group appoints additional Vice President to US Capital Wealth Management, following a year of strong business growth across multiple verticals.

SAN FRANCISCO, OCTOBER 2017 – San Francisco-based private financial group US Capital Partners Inc. announced today that Kyler Hasson, founder of Hasson Investments, has joined the group’s Wealth Management division, US Capital Wealth Management, as Vice President.

US Capital Wealth Management specializes in providing thoughtful, independent wealth management solutions to enable clients to build and protect their wealth. From $4 billion worth of deal flow reviewed each year, US Capital Wealth Management offers only the best-of-the-best investment opportunities to its clients, with a focus on personalized service and mitigation of the risks inherent in investing.

Kyler HassonPrior to US Capital Wealth Management, Mr. Hasson founded Hasson Investments, a private investment firm and registered investment adviser based in Mountain View, CA. Using a value-based, bottom-up approach, he rapidly grew the firm’s assets under management. A graduate and postgraduate of Stanford University, Mr. Hasson specializes in portfolio management and investment advisory, and works closely with clients to promote lasting financial success.

“I am extremely pleased to welcome Kyler to the firm’s rapidly expanding Wealth Management division,” said Jeffrey Sweeney, Chairman and CEO at US Capital Partners. “Clients at US Capital Wealth Management gain access to expert wealth advisory with customized portfolio construction and management. Our experienced investment advisors focus primarily on risk-adjusted rates of return with careful attention to portfolio downside protection. Kyler is a valuable addition to the team”

Commenting on his new role, Mr. Hasson said, “I am excited to join US Capital Wealth Management and to have the opportunity to work with such an experienced team of investment professionals. The division’s wealth management capabilities, coupled with easy access for clients to the entire group’s professionals and innovative enterprise-based finance products, is a benefit that resonates strongly with clients. I look forward to supporting the division’s continued expansion.”

About US Capital Partners

Since 1998, US Capital Partners Inc. has been committed to providing small and lower middle market businesses and investors with sophisticated debt, equity, and investment opportunities usually available only to larger middle market companies and institutional investors. The firm manages direct investment funds and provides wealth management and M&A services. Operating with its registered investment bank affiliate, US Capital Global Securities, LLC, the firm acts as a licensed placement agent, and collaborates closely with its peers in professional banking and investment advisory.

To learn more, email Jeffrey Sweeney, Chairman and CEO, at jsweeney@uscapitalpartners.net or call (415) 889-1010.

Monday
Oct162017

Market Insights: High Anxiety

Should we be scared? It is October. The Wall Street Crash of 1929 (kick-off to The Depression) began in October. Black Monday was in October 1987. In October of 1997, there was a stock market crash caused by economic crisis in Asia. The start of the Great Recession began in October 2007.

The stock market keeps moving steadily higher. When some investors look down, they feel high anxiety. We keep hearing the length of the current economic expansion is pushing up against previous historic records. Could we be teed-up for another October collapse?

Sharp stock market pull-backs of -5%, -10% and -20% occur frequently during bull markets and are to be expected. Typically, the stock market recovers in a matter of months from a run-of-the-mill decline. What we worry about is not so much a normal market correction, but an extended bear market drawdown that requires years to recover from.

Extended bear markets occur during recessions. If you would like to avoid a major bear market, first check to see if there is a recession likely in the intermediate term and second, reduce equity exposure.

Last week, we published an updated Leading Economic Index (LEI) chart that includes data through August 2017. For the past twelve months, the LEI has been consistently positive. From the LEI standpoint, there is no sign of a recession.

Historically, the LEI shows significant deterioration months before a recession. Shown below is the most recent example of the LEI providing ample warning before the 2007-2009 recession.

The treasury yield spread between the 10-year and the 2-year rate is also a reliable early indicator of impending recession. Although the spread between the 10 and 2-year is tightening, it is nowhere near inverted.

The chart above is the history of this relationship since 2006. Another way to look at the spread is to compare the yield curves on a single day. In the chart below on February 23, 2006, the 2-year was 4.72%, above the 10-year rate of 4.56% - inverted. Today, the 2-year is 1.47%, below the 10-year rate of 2.33% - not inverted, steep. Prior to recessions, we have seen inversions.

Again, market corrections are a normal part of bull markets. We could see a consolidation or correction in October, we may not. What we are not afraid of at this time is the beginning of a major bear market. Pullbacks should be bought.



Give Us A Call Today

We invite you to give us a call at (415) 249-6337 or email us at info@uscapitalwm.com if you have questions about your account and how we can assist you.


US Capital Wealth Management Stock Market Dashboard


Delta Market Sentiment Indicator (MSI) is published weekly in Barron’s


US Capital Partners

Pursuant to the provisions of Rule 206(4)-1 of the Investment Advisors Act of 1940, we advise all readers to recognize that they should not assume that recommendations made in the future will be profitable or will equal the performance of past recommendations. This publication is not a solicitation to buy or offer to sell any of the securities listed or reviewed herein. The contents of this letter have been compiled from original and published sources believed to be reliable, but are not guaranteed as to accuracy or completeness. Nicholas Atkeson and Andrew Houghton are also principals of US Capital Wealth Management, a registered investment advisor. Clients of US Capital Wealth Management and individuals associated with US Capital Wealth Management may have positions in and may from time to time make purchases or sales of securities mentioned herein.

THIS NEWSLETTER IS PROTECTED BY COPYRIGHT LAW. UNAUTHORIZED DISTRIBUTION AND/OR REPRODUCTION BY PHOTOCOPY OR ANY OTHER MEANS IS STRICTLY PROHIBITED AND PUNISHABLE BY A FINE OF UP TO $25,000.

Thursday
Oct122017

US Capital Advises on $8MM Equity Raise for Intel Partner Simply NUC, Inc.

Click on Offering Tile Below to See Opportunity

Simply NUC

Fast-growing Intel Platinum Technology Partner looks to San Francisco-based US Capital Partners to support its development in the mini-PC market.

SAN FRANCISCO, October 2017 – US Capital Partners Inc. has been engaged by Simply NUC, Inc. (“Simply NUC”) to advise on an $8 million series A equity raise. The company is an expanding Ultra Small Form Factor (USFF) technology solutions provider that has become a specialist in the build and customization of the pocket-sized portable PC sold as the Intel® NUC (Next Unit of Computing). Given the rate of growth currently being experienced by Simply NUC, the firm will be using the financing for additional team members, inventory, working capital, and imminent international expansion.

It is commonly known in the industry that the traditional desktop form PC no longer sees the highest growth in sales, as was previously the norm. In fact, rates are declining at a rate of –14% a year,¹ with businesses and consumers looking to the powerful, versatile, and easily portable “mini PC” market instead. The company provides over 200,000 customizable variations of the NUC, as well as expert advice, testing, service, warranty, and support of Intel® NUC kits, systems, solutions and accessories.

The company’s management has a close relationship with Intel, with jointly developed NUC solutions including the Digital Security and Surveillance bundle and Unite Smart Conference Room bundle. The relationship has also seen the exchange of expertise, insider product knowledge, joint product release, sales channels and referrals, which have proven extremely useful in the company’s start up years.

The future looks bright for the Intel Platinum Technology Partner, with CEO Aaron Rowsell commenting: “My team and I have worked the majority of our careers in the small form factor space and we all feel passionate about this company we have built. We are excited about our current rate of growth and profitability and that we are on this journey towards further growth with US Capital.”

“We are extremely pleased to be working on this capital raise for Simply NUC,” said Jeffrey Sweeney, Chairman and CEO at US Capital Partners. “It’s a pleasure to work with such an innovative company that is at the cusp of expansion both domestically and internationally. The opportunity to participate in Simply NUC’s Series A is now open to eligible investors through our digital investment platform, available at www.uscgs.com, which offers a curated selection of private placement offerings.”

1. Source: IDC Research, ‘Desktop Client Form Factor TAM Trend’, 2016.

About Simply NUC, Inc.

Formed in May 2015, Simply NUC, Inc. is an Intel Platinum Technology Partner. The company builds and customizes the pocket-sized portable PC sold as the Intel® NUC (Next Unit of Computing), also providing support and peripheral services for their products. Simply NUC is based in Austin (Round Rock), Texas. Headed up by CEO Aaron Rowsell and CTO Charles Abdouch, the company’s management team has an impressive background rooted in the technology space, covering both senior management and technical roles at household names such as Intel, Dell, HP, and others.

About US Capital Partners

Since 1998, US Capital Partners has been providing well-structured, custom finance solutions to private and public companies in the United States and abroad. Headquartered in San Francisco, US Capital Partners, operating with its affiliate US Capital Global Securities, LLC, is a full-service private financial group with a wide distribution for debt and equity private placements. The group makes debt investments between $500,000 and $100 million, participates in debt facilities, and offers asset management, financial advisory services for buy-side and sell-side engagements, and capital formation, including early-stage financings requiring equity or debt.

To learn more, email Jeffrey Sweeney, Chairman and CEO, at jsweeney@uscapitalpartners.net or call (415) 889-1010.

Tuesday
Oct032017

US Capital Engaged as Exclusive Adviser on $10MM Preferred Equity Raise for Device Authority Limited

Click on Offering Tile Below to See Opportunity

Device Authority

San Francisco-based private financial group supports the growth of innovative security automation company for the rapidly expanding Internet of Things (IoT).

SAN FRANCISCO, OCTOBER 2017 – US Capital Partners Inc. has been engaged by Device Authority Limited (“Device Authority”) as its exclusive financial adviser for a $10 million Class A-1 preferred equity raise for the firm. Device Authority will use the new financing for pre-sales and sales coverage expansion, marketing, product R&D, and working capital.

US Capital Partners is a full-service private financial group headquartered in San Francisco. Through its investment bank affiliate, US Capital Global Securities, LLC, the firm provides private placement services and has wide distribution for debt and equity private placements.

Incorporated in England and Wales, Device Authority provides solutions to address the challenges of identity and access management for the Internet of Things (IoT) without human intervention. The IoT is a new interconnection of technology heralded as the next industrial revolution. Device Authority’s KeyScaler™ platform, built exclusively for the IoT, delivers IoT security automation at scale.

Darron Antill, CEO at Device Authority, commented: “We approached US Capital Partners to support us with capital formation for the next phase of our business expansion. We are extremely pleased with the team and look forward to meeting strategic investors and other potential partners.”

“We are extremely pleased to be assisting Device Authority with its business financing needs in a strategic role,” said Jeffrey Sweeney, Chairman and CEO at US Capital Partners. “More than half of new businesses are expected to run on the IoT by 2020. The IoT is still in its infancy, though, and one of its most significant issues is security. Device Authority aims to be a global leader in this field. The opportunity to participate in Device Authority’s $10 million preferred equity raise is now open to eligible investors.”

About Device Authority Limited

Device Authority is a provider of identity and access management for the Internet of Things (IoT). Its KeyScaler™ platform provides trust for IoT devices and the IoT ecosystem, to address the challenges of securing the IoT. KeyScaler™ uses breakthrough technology, including patented Dynamic Device Key Generation and PKI Signature+ that delivers simplicity and trust to IoT devices. With offices in Fremont, California and Bracknell, UK, Device Authority partners with the leading IoT ecosystem providers, including Amazon Web Services, Dell, DigiCert, Intel, PTC, and Symantec.

About US Capital Partners

Since 1998, US Capital Partners Inc. has been committed to providing small and lower middle market businesses and investors with sophisticated debt, equity, and investment opportunities usually available only to larger middle market companies and institutional investors. The firm manages direct investment funds and provides wealth management and M&A services. Operating with its registered broker dealer affiliate, US Capital Global Securities, LLC, the firm acts as a licensed placement agent, and collaborates closely with its peers in professional banking and investment advisory.

To learn more, email Jeffrey Sweeney, Chairman and CEO, at jsweeney@uscapitalpartners.net or call (415) 889-1010.

Tuesday
Sep262017

US Capital Engaged on $5MM Preferred Equity Raise for Discovery Sound Technology, LLC

Click on Offering Tile Below to See Opportunity

Discovery Sound Technology

San Francisco-based private financial group supports the continued expansion of an innovative cloud-based service platform leveraging and advancing the Internet of Things.

SAN FRANCISCO, SEPTEMBER 2017 – US Capital Partners Inc. has been engaged by Discovery Sound Technology, LLC (“Discovery”) as its exclusive strategic adviser for a $5 million preferred equity raise for the firm. Discovery will use the new capital for software and product development, equipment production, customer acquisition, and continued expansion.

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