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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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Monday
Jul312017

How Much Gas Is In the Stock Market Tank?

Market Insights
July 27, 2017

How Much Gas Is In the Stock Market Tank?

Year-to-date, the S&P 500 is up roughly 11.5%. Just in the last week, it gained 1.2%. How much further can it run?

The value of stocks is positively related to increases in future corporate earnings and negatively related to increases in the risk premium. It is intuitive that if earnings rise, stocks should rise. What may not be as obvious is the effect of risk premium. A simple way to think of the risk premium is if investors become anxious, they may sell risk assets (stocks). If investors have confidence in their positive views of the future, they may buy risk assets (stocks).

When the P/E is constant, it says that the risk premium is constant. What is driving the value of stocks when the P/E multiple is steady are changes in earnings.

Since the end of 2015, the average P/E of the S&P 500 has been 21. The variance around this average has been tiny at 3.2% or less. In other words, the P/E has been essentially a constant for the past year and a half.

To make clear the point, stock prices were almost entirely driven by earnings gains over the past eighteen months: The S&P 500 appreciated by 18.6% and earnings, from the $98.61 low, advanced by 18.0%.

What would happen to the S&P 500 index if the P/E were to remain constant at 21 for another eighteen months?

By New Year’s Eve 2018, an investor in the S&P 500 may gain 23.5% appreciation based on earnings growth, all else being equal.

The stock market almost never advances in a straight line. The complex world we live in today has a tremendous capacity to create investor anxiety and changes in the P/E and risk premium. But with no signs of a recession on the intermediate term horizon, it is quite possible stocks continue to follow earnings higher.

 

We invite you to give us a call at (415) 249-6337, visit www.uscapitalwm.com or email us at info@uscapitalwm.com if you have questions about how we may assist you in managing your investment accounts.


Click on link below to see this commentary as a PDF:

How Much Gas Is In the Stock Market Tank?

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.

Wednesday
Jul262017

US Capital Partners Supports Businesses in the US Healthcare Industry

San Francisco-based private investment bank experiences rising demand for customized and scalable alternative financing solutions from enterprises serving the US healthcare industry.

Owning and operating a small or medium-sized business in the healthcare industry can be highly rewarding. Nevertheless, healthcare is also an industry that can come with larger overheads and requires significantly higher levels of capital expenditure. Structuring and securing the right debt or equity business financing is therefore essential.

Providing Custom Financing for Healthcare Companies

US Capital Partners’ healthcare finance team understands the industry and the challenges owners and CFOs face. The firm has deep experience in financing businesses across a wide range of healthcare sub-industries, including medical devices and equipment, pharmaceuticals, biotechnology, medical facilities and services, and drug manufacturing.

“US Capital Partners has a reputation for being an innovator in the healthcare financing space,” said Jeffrey Sweeney, Chairman and CEO at US Capital Partners. “Over the past 36 months, the firm has already provided over $150 million in financing for small to lower middle market businesses that serve the US healthcare industry. Our finance professionals understand the challenges and opportunities in the industry, and can design a healthcare financing solution that fits the specific needs of your business.”

Example Transactions

Click on the tombstones below for further details about these selected transactions.




To learn more about how your business can secure the financing it needs, email Jeffrey Sweeney, Chairman and CEO, at jsweeney@uscapitalpartners.net or call (415) 889-1010.

Tuesday
Jul182017

US Capital Engaged on $10M Preferred Equity Raise for DSI Acquisition, Inc

San Francisco-based private investment bank supports the growth of a medical device that detects, tracks and monitors critical skin changes.

Click Tombstone Below for Offering Details

DermSpectra

SAN FRANCISCO, July 2017 – US Capital Partners Inc. has been engaged by DSI Acquisition, Inc (“DSI”) as its strategic advisor for a $10 million series A equity raise. DSI, (digital skin imaging) operating under the brand Dermspectra, will use the new financing for scaling their operations, increasing production of commercial units, hiring staff and increasing marketing efforts.

Skin cancer is the most common cancer in the United States1, with current estimates that one in five will develop skin cancer in their lifetime2. Yet at one Dermspectra early commercial site, skin cancer expert, Dr. Mitchell Kline points out, the fundamental problem is that when dermatologists perform a skin examination it is common practice to write down what they see at one point in time. It is not possible to know what spots are changing without standardized full body serial digital photography. Dr. Kline reports discovering 5 new melanoma early within his patient population, using Dermspectra imaging over the past almost 2 years. Dermspectra now offers to fill that imaging gap in the market to aid standardized, preventative skin screening.

The company offers a patented total body imaging system that enables physicians to detect, track, and monitor critical skin changes in high resolution. Their system automatically combines total body imaging, standardization of imaging and post processing. Currently, the product is a FDA approved Class I medical device in imaging, and will begin to build databases of standardized skin imaging data over time.

According to Dr. Richard Carmona, 17th U.S. Surgeon General and DSI board member, "Dermspectra is setting the industry standard for how future dermatology, primary care, and medical practices will capture image data to assist early detection of melanoma and other skin diseases.” Karleen Seybold, CEO of DSI, adds to this, saying “this is a ‘know your skin’ campaign that could open up a wealth of possibilities for the industry through complete and consistent documentation, and skin data analytics, so we are excited to be working with US Capital Partners to take our product forward into the market”.

“We are extremely pleased to be assisting DSI Acquisition with its business financing needs in a strategic investment banking role, as the company moves into the next phase of its business expansion,” said Jeffrey Sweeney, Chairman and CEO at US Capital Partners. “The opportunity to participate in DSI’s $10 million convertible stock financing raise is now open to eligible investors through our digital investment platform at www.uscgs.com, which offers a curated selection of private placement opportunities.”

(1) Source: Cancer Facts and Figures 2016, American Cancer Society.
(2) Source: Skin Cancer Facts & Statistics, Skin Cancer Foundation.

About DSI Acquisition Inc.

DSI Acquisition Inc. is a medical device company operating under the brand name Dermspectra, developing and manufacturing a patented imaging device designed to enable physicians to detect, track and monitor critical skin changes and strives to ensure the best healthcare outcomes for patients. Between 2015 and 2016, the company completed a beta testing program, with four units been installed and subsequently converted into commercial ones. The Company is now seeking capital to build the first twenty production commercial units and scale operations. The Company received a grant from the Science Foundation of Arizona to develop the original prototype, is a recent recipient of FY16 Army Advanced Medical Technology grant, and has raised $4M to date. DSI Acquisition Inc. is based in Portsmouth, NH.

About US Capital Partners Inc.

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 investment bank 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. For more information, visit www.uscapitalpartners.net.

To learn more about how your business can secure the financing it needs, email Jeffrey Sweeney, Chairman and CEO, at jsweeney@uscapitalpartners.net or call (415) 889-1010.

Tuesday
Jul112017

US Capital Partners Organizes Exclusive Investor HealthTech Reception at New York Yacht Club

Private event at New York City social club showcases highly promising, early-stage HealthTech portfolio companies.

San Francisco, July 2017 – On June 27th, US Capital Partners Inc. organized and sponsored a HealthTech reception, presentation, and networking event for select accredited investors interested in highly vetted, investment-ready opportunities. The event was held in New York City at the historic W. 44th St. clubhouse of the New York Yacht Club, a private, invitation-only social club.

New York Yacht Club

US Capital Partners is a full-service private investment bank headquartered in San Francisco. Through its affiliate broker dealer, US Capital Global Securities, LLC, the firm provides private placement services and has wide distribution for debt and equity private placements. The exclusive event showcased two of the firm’s early-stage portfolio companies, Provia Laboratories and Digital Skin Imaging. Both companies are selling into their respective markets and seeking growth capital.

Howard Greenman, CEO, presented on behalf of Provia Laboratories, a revenue-generating stem cell processing and bio-storage company that focuses on personalized ‘autologous’ (cells from you, for you) consumer and commercial services. Karleen Seybold, CEO and Founder, spoke on behalf of Digital Skin Imaging, the first-to-market total body imaging solution for detecting, tracking, and monitoring critical skin changes (skin cancers, eczema, moles, psoriasis, and rashes). Pat Steele, Senior Vice President at US Capital Partners introduced the speakers.

In addition to company presentations and Q&A, the thought-provoking evening was structured to provide attendees with the unique opportunity for direct conversations with the speakers representing the startups, as well as with guest speaker Dr. Richard Carmona, the 17th Surgeon General of the United States.

About Provia Laboratories, LLC

Provia Laboratories is a revenue-generating stem cell processing, manufacturing, and bio-storage company with a leading position in dental stem cell storage and related services. Provia’s primary service, Store-A-Tooth™, provides private storage of stem cells from children’s teeth for future use in the child’s personalized regenerative medicine. Store-A-Tooth™ is a similar service to cord blood stem cell banks like ViaCord (purchased by PerkinElmer) and Cord Blood Registry (purchased by AMAG Pharma).

About Digital Skin Imaging

Digital Skin Imaging is a medical device company that develops and manufactures a patented imaging device designed to enable physicians to detect, track, and monitor critical skin changes. The system is an FDA-approved Class I medical device that combines total body imaging, standardization of imaging and post processing, and automation. Between 2015 and 2016, the company completed a beta testing program, with four units installed and subsequently converted into commercial ones. The company is now seeking capital to build the first twenty commercial units and scale operations.

About US Capital Partners Inc.

Since 1998, US Capital Partners Inc. 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 investment bank 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. For more information, visit www.uscapitalpartners.net.

Thursday
Jul062017

US Capital Partners Increases Bridge Finance Solutions for Small and Medium-Sized Businesses

Private investment bank offers strong interim lending support to underserved businesses, through swift and timely bridge loans customized to specification.

San Francisco, July 2017 – US Capital Partners Inc. announced today that it has further expanded its range of custom bridge finance solutions for small and medium-sized businesses. US Capital Partners is a private investment bank that makes direct debt investments, participates in debt facilities, and has wide distribution for debt and equity private placements for small and medium-sized businesses.

“US Capital Partners has a history of success when it comes to offering clients reliable and timely commercial bridge loans,” said Jeffrey Sweeney, Chairman and CEO at US Capital Partners. “Bridge loans generally fund in 1–3 weeks, which is a lot sooner than other types of financing, making them appealing for businesses waiting for more traditional financing or looking to take immediate advantage of an attractive commercial opportunity. At US Capital Partners we now provide bridge loan amounts up to $50 million for smaller businesses with assets.”

A bridge business loan is a temporary facility that provides short-term capital until a more permanent financing event occurs, or until the company’s financial obligation is removed. Bridge loans are commonly used to secure additional working capital, repay debt, or purchase or develop commercial real estate.

Bridge Loan Criteria at US Capital Partners

  • Loan size: $500,000 to $50,000,000
  • Lending area: National and international
  • Collateral: All assets
  • Amortization: Interest only
  • LTV: Up to 90% or advance on eligible revenue model
  • Closing time: 5 days to 20 days

Example Bridge Loan Transactions at US Capital Partners



To learn more about how your business can secure the financing it needs, email Jeffrey Sweeney, Chairman and CEO, at jsweeney@uscapitalpartners.net or call (415) 889-1010.