Commonwealth Capital is able to supply your commercial lending division with quality deal flow.
Here is what it means for your bank.
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—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. During this period they are engineered to become “bankable” after the Call feature expires.
Although the convertible preferred equity can be an expensive form of capitalization, it is not as expensive as selling common equity—assuming success. The convertible preferred equity is positioned as only temporary equity capital until it can be properly replaced, through the Call provision, with traditional bank financing. Commonwealth Capital realizes and promotes the position of traditional bank financing as the least expensive form of 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 bank would be interested in incubating its own quality deal flow, we suggest that you simply Contact Us to get started.