Commonwealth Capital is able to supply your investment banking division with “quality deal flow,” i.e. quality companies with accredited investor contacts.
Here’s what it means for your broker dealer.
Commonwealth Capital has been capitalizing Start-up and Early Stage Companies as their venture capital partner, since 1998. As former Wall Street investment bankers, we create convertible preferred equity to assist small companies in raising $5-$10 million in equity capital through a Reg. D 506(c) offering enabling general solicitation to accredited investors—our sweet spot. The preferred equity normally holds a first lien security on assets for investor protection; has a stated dividend in the 6-9% range to attract investors; has an annual participative dividend, which is a participation in net profits; a conversion into common-voting-equity feature and call protection that last 4-5 years.
All of our portfolio companies have been filtered for a pre-existing list of potential investors for your broker dealer to solicit. In addition, they also have a mandate to provide cash as a marketing budget to assist the broker dealer in attracting hundreds if not thousands of additional investors from the Reg. D 506(c) offering.
These young companies are properly engineered to attract investment capital.
Commonwealth Capital’s ultimate goal is to incubate these firms to be the “quality deal flow” sought by Wall Street for IPOs and Corporate America for acquisitions.
There is Never any Cost or Obligation to Participate.
If your broker dealer would be interested in incubating its own quality deal flow, we suggest that you simply Contact Us to get started.