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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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Wednesday
Aug302017

Exclusive Secondary Investment Opportunities

Venture Secondaries' logos

US Capital is now offering its investors exclusive access to hundreds of privately traded equities in select late-stage, pre-IPO companies.

SAN FRANCISCO, August 2017 – US Capital Partners Inc., through its broker dealer network, is now offering its investors access to a wide range of select privately traded equities on the secondary market. These include market-leading companies such as Palantir, Uber, SpaceX, Lyft, Pinterest, Unity, and Sonos, to name just a few.

Headquartered in San Francisco, US Capital Partners is a full-service private investment bank 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.

“Through our registered broker dealer network, our investors can choose from hundreds of privately traded equities on a secure SEC-licensed alternative trading system,” said Charles Towle, Managing Partner at US Capital Partners and Division Head at US Capital Global Securities. “These late-stage secondary investment opportunities are typically closed off to investors outside of institutional venture capital.”

Leading Advantages for Investors:

  • Private securities available on an SEC-licensed alternative trading system (ATS) that delivers exchange-like functionality.
  • All private securities are transferable with the consent of the portfolio company. There is no sale of derivatives and no collateralization.
  • The ATS is designed specifically for institutional investors, who require full transparency at reasonable transaction costs. This ATS is now available to our investors.
  • All sales of private securities are carried out by a registered broker dealer.

Startups are increasingly staying private for longer. Investors are therefore looking for ways to add equity in private companies to their investment mix through the use of secondary transactions. US Capital Partners, operating with its registered broker dealer affiliate, US Capital Global Securities, LLC, is now offering eligible investors access to a wide range of exclusive late-stage investment opportunities through a secure SEC-licensed platform.

To learn more about our secondary securities platform, please email Patrick Steele, Senior Vice President, at psteele@uscgsecurities.com or call +1 (415) 889-1010. We are happy to explain the investment process to you in detail.

About US Capital Partners Inc.

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 Patrick Steele, Senior Vice President, at psteele@uscgsecurities.com or call +1 (415) 889-1010.

Wednesday
Aug232017

The New, New, New Normal – Low Inflation

This week, the Federal Open Market Committee (FOMC) released its July meeting notes. The notes show a discussion of softness in inflation in recent months. Many participants saw some likelihood that inflation might remain below 2% for longer than currently expected, and several indicated the risks to the inflation outlook could be tilted to the downside.

Low inflation in an economy with full employment, rising wages and rising home and stock values seems odd.

In the second half of the 1990s, inflation declined from about 3.5% to a range of about 1% to 2%.

Does twenty years of low inflation since 1997 make a trend? It might. The technology boom accelerated sharply in the late 1990s with the rapid advancement of broadband Internet, smart phones, PCs/tablets and adding digital intelligence to almost everything. The cost of doing business declined and price transparency increased. Global competition increased and automation replaced many workers. Technology development has been deflationary.

Low inflation is a positive for stocks. If inflation remains low (below 2%), interest rates are likely to remain low. Low interest rates stimulate investment (including in stocks, homes and by businesses in new projects). For the eight years following the 1933 depression market low, average annual inflation was 1.58% and the S&P 500 increased by about 50%. For the eight years following 2008, annual average inflation has been 1.38% and the market is up over 160%.

In the bigger picture, inflation was low from 1933 up until 1965 with the exception of the WW2 years and a couple of years following. During this low inflation period, the stock market advanced by about 785%. During the bull markets of the 1980s and 1990s, inflation was about 3.25%.

Conversely, high inflation is generally negative for stock valuations. From 1965 to 1982, the average annual inflation rate was almost 7%. The S&P 500 had an average annual return of roughly 1.4% per year during those 17 years.

The new, new, new normal which we may be awakening to is the idea that inflation will remain low for years to come as technology advancement and globalization are enduring trends. Many investors began 2017 with high conviction that the 10-year treasury rate would end the year at about 3%. Year-to-date, it has traded down from about 2.6% to about 2.2%. The low inflation trend remains in place despite the extraordinary measures of the Fed to raise the inflation rate and the growth of the economy. Additionally, the Fed is indicating that it intends to shrink its balance sheet (sell bonds) in the fourth quarter which was expected to cause rates to rise in anticipation (markets are usually forward looking).

As investor sentiment migrates increasingly to a belief that inflation and interest rates will remain low for years, asset prices should get a boost. During a CNBC interview in May, Warren Buffett said, “The most important item, over time, in valuation is interest rates. It’s a huge bargain to buy stocks now if you knew interest rates would stay at this level.” He added, “Anybody that prefers bonds to stocks is making a big mistake.”

In May of 2017, the S&P 500 was roughly 2,400. Today, it is roughly 2,450. This week, the Leading Economic Index (LEI) for July was reported at 0.3%. This is the eleventh consecutive positive month-over-month percent change. We remain bullish.


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 our investment management services how we can assist you in managing your investment accounts


Tuesday
Aug222017

Charles Towle Provides Valuable Insights on Impact Investing as Special Guest on Real Wealth Blueprint Radio Show

Real Wealth Blueprint

Managing Partner at US Capital Partners Inc. discusses impact investing and the building blocks for growing and securing wealth as special guest on radio talk show.

SAN FRANCISCO, August 2017 – Charles Towle, Managing Partner at US Capital Partners Inc., was a special guest on the Real Wealth Blueprint Radio Show, hosted by Chris Ragland, Romney Navarro, and Tammie Tirres. Entitled “Impact Investing from a Wall Street Perspective,” the episode aired on July 30th, 2017.

Headquartered in San Francisco, US Capital Partners is a full-service private investment bank committed to impact investing. The firm focuses on 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.

Produced by Noble Capital, Real Wealth Blueprint is a financial show that aims to bring proven wealth strategies to the real world. Listeners can expect to learn many of the strategies that have historically been available only to the one percent. Every week, the educational series presents in-depth discussions outlining the building blocks necessary to grow and secure your wealth.

Founded in 2002 and based in Austin, Noble Capital has grown to become a leading private moneylender in the Texas single-family real estate market. Noble Capital recently announced the launch of a $250 million Texas real estate fund in partnership with US Capital Partners, through the latter’s private securities division, US Capital Global Securities. Noble Capital has extensive experience and a notable track record in the market, and the new real estate fund provides a much greater level of sophistication for individuals and family offices looking to invest in the lucrative Texas real estate market.

Texas has led the nation in job growth for the past four years. According to the Census Bureau, four Texas metro areas collectively added more than 400,000 people in the past year, highlighting that Texas is a thriving market for real estate investing.

“I am delighted to have been invited on the show,” said Towle. “At US Capital Partners, we take the tools of Wall Street and bring them to Main Street, so that they can be used to build communities and generate wealth for all stakeholders, not just a few. We are committed to profitable economic and social development empowerment. Investment opportunities that create jobs and have a strong beneficial impact can also offer very attractive, risk-adjusted returns to investors. Many of these opportunities are not well served by larger financial institutions.”



About US Capital Partners

Since 1998, US Capital Partners 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
Aug152017

US Capital Partners Holds “Future of Tech” Event in Manhattan, New York

Innovative New York City rooftop event explores the impact and future of FinTech, HealthTech, MediaTech, and impact investing in the industry.

SAN FRANCISCO, August 2017 – On July 25th, US Capital Partners Inc. organized and sponsored a reception, presentation, and networking event on the future and impact of FinTech, HealthTech, and MediaTech. Entitled “Future of Tech,” the rooftop event was held on Lexington Avenue in Manhattan, New York City, and focused on the direction and future of the industry over the next five years.

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 firm’s technological innovations in finance reduces “transaction friction” and makes smaller deals more efficient and practical than ever before.

New York Event

The event opened with a presentation by James Clark, founder of The World Technology Network and Awards. Clark founded a global network of peer-elected most-innovative people in the science and technology arena. Global sponsors and partners have included Fortune magazine, TIME magazine, CNN, Science magazine, the New York Stock Exchange, Microsoft, Shell Foundation, Novartis, and salesforce.com, among others.

This was followed by an inspiring talk by Chinyere Nnadi, founder of Sustainability International. Nnadi is a social entrepreneur dedicated to leveraging cutting-edge technology to clean up the environment and reduce poverty in his homeland, the Niger Delta of Nigeria. Michael R. Neece, a co-founder of seven startups, presented also. Neece’s latest software company, Jenyta, automates complex workflows and integrates data silos to orchestrate how people and systems work together.

Vincent Favrat, CEO at Musimap, a Belgian music cognitive technologies company, also gave a talk at the event. Together with Thierry Baujard, Favrat repositioned the company in B2B, spearheaded a funding round to finalize Musimap’s emotive-sensitive technologies, and prepared its successful market entry.

“US Capital Partners was keen to put FinTech, HealthTech, and MediaTech under the looking glass to see where the next five years will lead us,” said Zee West, Events Coordinator at US Capital Partners. “Some key topics included socializing finance, financial inclusion and health, and partnering with companies outside the classic start-up and scale-up universe. It was a very thought-provoking event with an overwhelming response.”

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 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 US Capital Partners or about how your business can secure the investment banking services it needs, email Jeffrey Sweeney, Chairman and CEO, at jsweeney@uscapitalpartners.net or call (415) 889-1010.

Thursday
Aug102017

The Great American Eclipse and Bull Market

Market Insights: The Great American Eclipse and Bull Market

On Monday, August 21, 2017, the Great American Eclipse will be visible from a narrow path from Oregon to South Carolina. This is the first total solar eclipse in the United States in 38 years and the first coast to coast eclipse since 1918. Adding to the excitement, this will be the first eclipse in the history of the United States, which in totality is exclusively “For USA Eyes Only.”

Since Donald Trump was elected the 45th U.S. President, the S&P 500 has gained 17.6%, the Dow +20.6% and the tech heavy NASDAQ composite +22.7%. In a bullish market, record highs are common – unlike a Made in the USA total solar eclipse. Year-to-date, the S&P 500 has closed at new highs 31 times or 21% of the trading days, the Dow 41 times or 27% and the NASDAQ 39 times or 26.5%.

Along with solid gains and new highs, stocks have had small retreats – also referred to as drawdowns. Year-to-date the largest drawdown is 2.6% from early March high to mid-April. Ahead of the election in November, the S&P 500 had a 4.3% drawdown from August high (shown below):

Earnings in Driver Seat

Corporate earnings are a major factor fueling this latest advance of the 8-year-old bull market.  After an earnings timeout when S&P 500 earnings experienced essentially no earnings growth in 2015 and 2016, growth forecasts for 2017 and 2018 are double-digit according to Thomson Reuters I/B/E/S (below). The squiggly colored lines are the lives of annual forecasts.  In this subset (2011-2018) as in most years, forecasts are initially overly optimistic and fade over time as reality sets in. As we close in on the 2017 finish line, forecasts are holding up better than most years and the stock market has voted its approval.


Energy Sector – Star to Goat to Contributor

Breaking earnings down by sector contribution, the chart below shows the eleven sectors of the S&P 500 over the past four years. One can see clearly how the energy sector forward earnings (the green line) were decimated from the end of 2014 to mid-2016 from $50 to $10. Though still far from highs, the energy sector earnings are off the floor and are adding to the growth in overall S&P 500 earnings.


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 our investment management services how we can assist you in managing your investment accounts



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

The Great American Eclipse and Bull Market

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.