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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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Thursday
Aug102017

Join US Capital and New Cities at Investor Event in San Francisco

Join US Capital and New Cities at Investor Event in San Francisco

Affordable Developments

The $110MM Mixed-Use Affordable Development in Hayward, California

SAN FRANCISCO, August 2017 – US Capital Partners Inc. has been engaged as the exclusive advisor to New Cities Investment Partners, LLC for the capital formation for a $110MM mixed-use real estate development named the ‘Maple & Main Project’ in Hayward, located in California’s flourishing San Francisco Bay Area. To showcase this project, US Capital will be hosting an investor event on Thursday, August 17th between 6pm and 8pm at the iconic Bently Reserve. This landmark, known as the former San Francisco Federal Reserve building, is located at 301 Battery Street. This will be an opportunity to meet the management team and join the discussion around Maple & Main’s conception.

The Maple & Main Project has been unanimously approved by the Hayward City Council and is expected to be a catalyst for downtown revitalization. The project is located at Main, Maple & A Street on a 3.9 acre site four blocks from the BART, and consists of 240 market-rate and affordable apartments and 5,571 square feet of retail space that exhibit both eco-friendly and socially responsible design principles.

Other planned amenities include a 50,000 square foot medical office, a 504-stall parking garage, three open courtyards, a swimming pool, a 3,600-square-foot clubhouse and a 6,460-square-foot rooftop terrace. The site also has easy access to the 580 and 880 freeways, and is only a 35-minute BART ride from downtown San Francisco.

Lee Newell, Chief Executive Officer at New Cities, commented: “We approached US Capital Partners to support us with capital formation for this landmark project. We are extremely pleased with the team and look forward to meeting strategic investors and other potential partners.”

“We are delighted to be involved in this project, which is so close to home for us,” said Jeffrey Sweeney, Chairman and CEO at US Capital Partners. “The business comes at a good time as the area has benefited substantially from  San Francisco and Silicon Valley’s prosperity. Just down the road from this site, residents will find high-profile employers such as Tesla Motors, Seagate Technology, and Amazon. The opportunity to participate in this fund is now open to eligible investors.”

To join the investor event on Thursday, August 17th, please message psteele@uscgsecurities.com to RSVP.

About New Cities Land Company, Inc.

New Cities Land Company, Inc. (“New Cities”), formed in 1984, is a privately held corporation based in Walnut Creek, California. The company is active in land use entitlements, multi-family residential developments, and commercial investment-grade properties in California. New Cities controls New Cities Investment Partners, LLC, an entity focused on the acquisition, entitlement and development of urban infill apartment sites in the greater San Francisco Bay Area. New Cities is also the managing member of Bay Area Property Developers, LLC. New Cities is led by industry veteran Lee Newell and his senior team of Blake Peters, Stuart Brown, and Travers Newell. New Cities has developed over $2.5BN of real estate in California, Nevada, and Arizona.

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 $500K and $100MM, 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.

Sunday
Aug062017

5% Interest on Checking Accounts – Those Were the Days!

Market Insights
August 3, 2017

5% Interest on Checking Accounts – Those Were the Days!

I have great memories hearing my grandparents and my parents recalling when such and such used to cost a dime or a nickel: the subway, the bridge toll, The New York Times, a cup of coffee… those were the days.

While we are getting nostalgic, how about the days when a Certificate of Deposit used to pay 5%....or even on a checking account! One does not have to go too far back. Below is a flyer sent out by First Republic Bank in March 2001:

From the chart below, one can observe that rates (in red) have fallen with extreme volatility since the early 1980s when rates on 6-month CDs were as high as 18%! In August 2007, just ten years ago, 6-month CDs were paying 5.4%. Over the past eight years, 6-month CDs have averaged 0.30%. Another way to look at this extraordinary change is that the interest on $100,000 in 2007 was paying/yielding $5,400 and has dropped to only $300 per annum for the past eight years.

Another observation from this chart is that 6-month CD’s have typically (90% of the time) been greater than inflation from 1980 through April 2009. Over the past eight years, CDs have been running below inflation 100% of the time.

What does this all mean? In short, savings in these CDs are losing to inflation and are not meeting any minimal income requirements. Subsequently, individuals are being forced out on the risk curve (into longer maturities and riskier assets) in search of yield and growth.

One of the most important things when planning for the future and investing is being adaptable. The chart above is a stark reminder. The investment landscape is complex and always changing. Some changes are gradually, while others like the rates of these CDs pictured can change dramatically in short periods. As investors, we need to stay on our toes and/or find someone to help us.

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


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

5% Interest on Checking Accounts – Those Were the Days!

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.

Sunday
Aug062017

480 Holdings LLC Release Plans for Premium Bottled Water from Fiji to Investors at San Francisco Event

480 Holdings LLC Release Plans for Premium Bottled Water from Fiji to Investors at San Francisco Event

480 Holdings

Senior management at emerging premium bottled water company lay out plans to investors at the Fairmont Hotel in San Francisco.

SAN FRANCISCO, August 2017 – Last week, investors gathered at the iconic Fairmont Hotel in San Francisco to hear 480 Holdings Limited, LLC (“480 Holdings”) present and discuss their plans for a socially responsible, premium bottled spring water brand named Yaqara Water™ (“Yaqara”).

Demand for bottled water has steadily grown as consumers around the world shift away from sugary beverages towards healthier alternatives.¹ A number of investors were curious as to how this company is going to differentiate its offering from other bottled water companies, given the strong competition from premium water brands including Fiji Water™, and how the company proposes to improve the lives of the local population.

A lively discussion ensued with probing questions posed to the 480 Holdings team, including Bob Bishop, Founder; Patrick Scanlon, CEO; Ed Gawronski, CMO; Gobind Khalsa, CFO; and Brian Sudano, Board Member. The team outlined a business approach that is markedly different from that of their competition, with a commitment to renewable energy, stewardship of the adjacent rainforest, employment practices that include higher-than-market wages, and a firm commitment to contribute 1.0% of annual gross revenues to the 480 Holdings Humanitarian Fund to benefit the local Fijian people throughout the term of the firm’s 99-year land leases.

The company’s leases, comprising approximately 400 acres, include an additional government-provided 23 square miles of protective buffer zone. Within this zone, which serves as the natural recharge area for the 480 Holdings water source, solely 480 Holdings will be permitted to extract water. Furthermore, third-party experts Riley Consultants Ltd and Williamson Watery Advisory Ltd have confirmed that the 480 Holdings leases and associated buffer zone contain an abundant, annually renewing supply of pristine, premium drinking water.²

Visit the company’s offering webpage to read more about its $15 million convertible note, or have a look at its presentation slides and Q&A transcript.

About 480 Holdings Limited, LLC

Formed in 2015, 480 Holdings Limited, LLC is based in Tijeras, New Mexico. The company plans to bottle and sell premium Fiji natural spring water under the brand Yaqara Water™. CEO Patrick Scanlon has over 40 years of project management and marketing experience, with 18 years spent at Walt Disney Imagineering as Senior Vice President and more. The company’s Board of Directors includes Brian Sudano, COO of the Beverage Marketing Corporation, a leading expert in the beverage industry worldwide, and Douglas Holt, recently retired Vice President and General Manager of TaylorMade-Adidas Golf, who was responsible for $1.7 billion in international sales and brand management. Ed Gawronski, the recently appointed CMO, is an accomplished senior marketing executive experienced in growing high profile beverage and retail consumer brands.

To learn more about 480 Holdings Limited, LLC or Yaqara Water, please email Gobind Singh Khalsa, CFO, at gobindsingh@480holdings.comor call (707) 827-0108.

1. DrinkTell Database with Market Forecasts, Beverage Marketing Corporation (2016).
2. Addendum to EIA Report – Proposed Spring Water Bottling Project – 480 Holdings Ltd, Riley Consultants Ltd (2015).

About US Capital Partners

Since 1998, US Capital Partners has provided structured, custom financing 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 of equity and debt.

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.

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.

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