• Private, Venture and Insitutional Capital
  • Creative Debt/Equity Finance
  • Bank Portfolio Acquisition
  • Media Investment Partners
  • Royalty and IP Fund Partners
  • Private label Credit Cards
  • DIP and Turnaround Funding
  • PPM and Private Crowd Funding
  • Funds of Funds
  • LOP Letter of Protection Funds
  • Additional Products

Private, Venture and Insitutional Capital

Private Capital:

Private capital is money provided to a business as a loan or equity investment that does not come from an institutional source, such as a bank or government entity, or from the public through selling stock on a stock exchange. The money comes from private individuals or a group of individuals who make investments that are not regulated by the government or the rules of a public exchange. Private Capital can be utilized for any purpose agreed between the investor and the business seeking funds. These funds can come in any form such as Venture Capital, Growth Capital, Equipment Lease, Private Equity, Debt Consolidation Etc.

Venture Capital: (VC)

Angel & Crowd Funding is a type of private equity, a form of financing that is provided by firms or funds to small, early-stage, emerging firms that are deemed to have high growth potential, or which have demonstrated high growth. Venture capital firms or funds invest in these early-stage companies in exchange for equity–an ownership stake–in the companies they invest in. Venture capitalists take on the risk of financing risky start-ups in the hopes that some of the firms they support will become successful. The start-ups are usually based on an innovative technology or business model and they are usually from the high technology industries, such as information technology (IT), social media or biotechnology.

The typical venture capital investment occurs after an initial "seed funding" round. The first round of institutional venture capital to fund growth is called the Series A round. Venture capitalists provide this financing in the interest of generating a return through an eventual "exit" event, such as the company selling shares to the public for the first time in an Initial public offering (IPO) or doing a merger and acquisition (also known as a "trade sale") of the company. In addition to angel investing, equity crowd funding and other seed funding options, venture capital is attractive for new companies with limited operating history that are too small to raise capital in the public markets and have not reached the point where they are able to secure a bank loan or complete a debt offering. In exchange for the high risk that venture capitalists assume by investing in smaller and early-stage companies, venture capitalists usually get significant control over company decisions, in addition to a significant portion of the companies' ownership (and consequently value). Start-ups like Uber, Airbnb, Flipkart, ReviewAdda, Xiaomi & Didi Chuxing are highly valued startups, where venture capitalists contribute more than financing to these early-stage firms; they also often provide strategic advice to the firm's executives on its business model and marketing strategies.

Venture capital is also a way in which the private and public sectors can construct an institution that systematically creates business networks for the new firms and industries, so that they can progress and develop. This institution helps identify promising new firms and provide them with finance, technical expertise, mentoring, marketing "know-how", and business models. Once integrated into the business network, these firms are more likely to succeed, as they become "nodes" in the search networks for designing and building products in their domain.

Institutional Capital:

Institutional comes from entities which pool money to purchase securities, real property, and other investment assets or originate loans. Institutional investors include banks, insurance companies, pensions, hedge funds, REITs, investment advisors, endowments, and mutual funds. Operating companies which invest excess capital in these types of assets may also be included in the term. Activist institutional investors may also influence corporate governance by exercising voting rights in their investments.

Creative Debt/Equity Finance

Equity Finance

An equity investment generally refers to the buying and holding of shares of stock on a stock market by individuals and firms in anticipation of income from dividends and capital gains. Typically, equity holders receive voting rights, meaning that they can vote on candidates for the board of directors (shown on a diversification of the fund and to obtain the skill of the professional fund managers in charge of the fund. An alternative, which is usually employed by large private investors and pension funds, is to hold shares directly; in the institutional environment many clients who own portfolios have what are called segregated funds, as opposed to or in addition to the pooled mutual fund alternatives

Bank & Private Portfolio Acquisitions:

The sale of a wide variety of financial assets and receivables.

Portfolios can pertain to automobile finance portfolios to SBA loan portfolios or any mix attracted to the acquisition.

Media Investment Partners

Media Investment:

Individuals or Groups of entities utilize their media resources as an investment into a company requiring media in their marketing plan in exchange for equity. The investment becomes a fully paid for asset having a positive balance sheet effect while being used to carry out its investment purposes. Media includes but is not limited to National & regional television networks, Internet TV - Social Media Advertising, Social Media Marketing, Teenagers, Big Data Analytics, Video Streaming Film, Film Distribution, Film Production, Information Technology, Online Media Marketing, Social Media Marketing, Social Media, Social Media Networking, Social Media Trends, Social Media Content, Online Media Content, LinkedIn, FaceBook, Twitter, Ping.Fm, Linked, Online Media Strategist, Social Media Trainer, Social Media Blog, LinkedIn for Business, LinkedIn to success, Linkedin video, Wordpress Social Media, Social Media Marketing, Social Media Networking, Social Media Content, Online Media, Social Media Marketing, Online Media Marketing, Social Media Networking, Social Media Trends, Social Media Content, Social Media Network, Traditional marketing

Royalty and Intellectual Property Fund Partners

Royalty financing is an alternative to regular debt financing and equity financing.

A royalty fund falls in the category of private equity fund that specializes in purchasing consistent revenue streams deriving from the payment of royalties. One growing subset of this category is the healthcare royalty fund, in which a private equity fund manager purchases a royalty stream paid by a pharmaceutical company to a patent holder. The patent holder can be another company, an individual inventor, or some sort of institution, such as a research university.[1]
Royalties are a usage-based payment from one individual or entity to another individual or entity, giving the right to the use of an asset, product, service or idea. In a royalty financing arrangement, a business receives a specific amount of money from an investor or group of investors. In exchange, the investor receives a percentage of the company's future revenues over an agreed period of time to equal an agreed ROI amount. The investment is considered an "advance" to the company, and the periodic percentage payments are considered "royalties" to the investors.
The founders of the company are able to preserve their equity position and prevent dilution of their stock value. Royalty financing arrangements—since they most resemble loans—are not subject to state and federal securities laws as most equity financing deals are. Royalty financing increases a company's ability to structure deals with individual investors, who may be attracted to the idea of receiving a monthly or quarterly yield over the life of their investment. In contrast, equity financing arrangements often show no yield until the stock is sold.
Compared to debt financing, royalty financing provides more convenient & flexible percentage payback terms and less severe penalties for default. Ultimately, royalty financing enables a business to keep its options open for later financing rounds. Contrary most businesses that incur significant debt or sells a great deal of its equity in its early stages may later stage investors more difficult to attract.

Intellectual Property Funding: An Intangible Asset Finance Tool; IP Funding is a branch of finance that deals with intangible assets such as patents (legal intangible) and reputation (competitive intangible). Like other areas of finance, intangible asset finance is concerned with the interdependence of value, risk, and time. The investor securitizes the future royalty revenues of the intellectual property through its operating channels such as licensing or sale of its usage.

Private Label Credit Cards:

A private label credit card is a store-branded credit card that can only be used at that store or business.

A private-label credit card is a type of revolving credit plan managed by a bank or commercial finance company for either retail or wholesale manufacturers, such as department and specialty stores. Private label credit cards do not carry a credit card logo such as MasterCard and cannot be used with other merchants. The private label credit: program allows sellers of a product or service to offer more lenient and extended terms to customers than they could otherwise. A private label credit card can encourage repeat business and customer loyalty. Investors are able to allow the business utilizing the instrument at a variety of credit score requirements by sharing a nominal exposure to the risk and or include a discount on the transaction to the paying fund backing the transaction. Businesses utilizing Private Label Credit instruments are able to capture more of its marketplace and integrate value added benefits to the customer.
Sub-Prime Client Sales-Service & Contract Funding Partners also available

DIP and Turnaround Funding

DIP – Debtor in possession financing:

A special form of financing provided for companies in financial distress, typically during restructuring under corporate bankruptcy law (such as Chapter 11 bankruptcy in the US. Usually, this debt is considered senior to all other debt, equity, and any other securities issued by a company. DIP financing may give a troubled company a new start and opportunity in its re organization plan to recovery and regain its business & market plan. In this case, "debtor in possession" financing refers to debt incurred while in bankruptcy, and "exit financing" is debt incurred upon emerging from reorganization under bankruptcy law. It may also be used to keep a business operating until it can be sold as a going concern, if this is likely to provide a greater return to creditors than the firm's closure and a liquidation of assets.

Turnaround Workout Funding

Under turnaround management, funding is required to achieve a plan of corporate renewal to save troubled companies and return them to solvency, as they identify the reasons for failing performance in the market, and rectify them with debt restructuring. Turnaround management involves management review; root failure causes analysis, and SWOT analysis to demine why the company is failing. Once approved, turnaround professionals begin to implement the plan, continually reviewing its progress and make changes to the plan as needed to ensure the company returns to solvency.

PPM and Private Crowd Funding

PPM Private Placement Memorandum: (Regulation D)

A non-public offering is a funding round of securities which are sold not through a public offering, but rather through a private offering, mostly to a small number of chosen investors.

PIPE (Private Investment in Public Equity) deals are one type of private placement. SEDA (Standby Equity Distribution Agreement) is also a form of private placement. They are often a cheaper source of capital than a public offering. Although these placements are subject to the Securities Act of 1933, the securities offered do not have to be registered with the Securities and Exchange Commission if the issuance of the securities conforms to an exemption from registrations as set forth in the Securities Act of 1933 and SEC rules promulgated there under. Most private placements are offered under the Rules known as Regulation D. Different rules under Regulation D provide stipulations for offering a Private Placement, such as required financial criteria for investors or solicitation allowances. Private placements may typically consist of offers of common stock or preferred stock or other forms of membership interests, warrants or promissory notes (including convertible promissory notes), bonds, and purchasers are often institutional investors such as banks, insurance companies or pension funds. Common exemptions from the Securities Act of 1933 allow an unlimited number of accredited investors to purchase securities in an offering. Generally, accredited investors are those with a net worth in excess of $1 million or annual income exceeding $200,000 or $300,000 combined with a spouse. Under these exemptions, no more than 35 non-accredited investors may participate in a private placement. In most cases, all investors must have sufficient financial knowledge and experience to be capable of evaluating the risks and merits of investing in a company.

Private Crowd Funding:

Crowd funding is the practice of funding a project or venture by raising monetary contributions from a large number of people. Crowd funding is a form of crowd sourcing and of alternative finance. In 2015, it was estimated that worldwide over US $34 billion was raised this way. Private Crowd funding: is where a closed network of the targeted industry related investors are privately invited to a specific business opportunity which is not limited to simple crowd funding as equity and other opportunities are made available including synergistic usage and values the investors may participate in.

Funds of Funds

A fund of funds (FOF) - also referred to as a multi-manager investment - is an investment strategy in which a fund invests in other types of funds. This strategy invests in a portfolio that contains different underlying assets instead of investing directly in bonds, stocks and other types of securities. Funds of Funds typically are utilized to fund a niche lender portfolio such as a healthcare finance or equipment leasing firm. Funds of Funds (Hedge Funds) work with securitization instruments to a variety of financial institutions.

LOP Letter of Protection Funds

A Letter of Protection (LOP) is a letter sent by a personal injury lawyer to a medical professionals to allow an injured person to obtain medical care they otherwise cannot afford on credit in exchange for a promise to pay for the services directly out of a settlement or judgment. The Fund provides the capital required to pay for the treatments / procedures in advance of the settlement outcome. Physicians & Attorneys are able to handle more business without out of pocket cost. The fund agrees to wait until the conclusion of the case to demand payment

Additional Products offered by MBS or its associate members:

  • Purchase Order Financing
  • Contract Funding
  • Intermediate Bridge Type Investments
  • Surety & Performance Investment Bond Investors
  • Deal Driven Equipment Leasing ( Not Credit Driven)
  • Health Care & Physician & Related Practice Special Fund Investors

Additionally Other Alternative Investment with unconventional underwriting may include such instruments as:

Collateral Enhancement Investors:

CEI is where an investor entity or group of investors places their dormant and or otherwise surplus assets as an investment into the prospective business venture whereby the venture becomes fully collateralized to qualify for the underwriting requirements of another would be investor.

Security / Performance Bonds:

As an investment instrument; the usage of Surety Bonds to secure an investor can become an investment in itself by the issuer of the Bond or purchaser of the Bond for minority interest.

Alternative IPO - Reverse Merger into existing public co.

An act where a private company purchases a publicly traded company and shift sits management into the latter. It also normally involves renaming the publicly traded company. This allows private companies to become publicly traded while avoiding the regulatory and financial requirements associated with an IPO. In order for a reverse merger to happen smoothly, the publicly traded company is usually a shell corporation, that is, one with only an organizational structure and little or no activity; however some publicly traded co.’s are in need of new technology or market direction and welcome the opportunity to enter into such an opportunity beneficial to both parties. The two businesses can then merge the private company's product with the public company's structure. It also makes initial trading less dependent on market conditions, a key risk in IPOs.

SBA Loan Program

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