Archive for 2018
YieldStreet Gets $113M Closer to ‘Changing The Way Wealth is Created’
January 24, 2018New York’s YieldStreet, an alternative investment platform, closed a $113 million financing round earlier this month. The company announced that the round drew $12.8 million in Series A equity financing from the team of Greycroft and Raine Ventures, as well as a $100 million revolving credit facility from an unspecified entity.
Via release, YieldStreet said that the equity will enable it to “accelerate the transformation of wealth creation by investing in further product innovation and growing its loyal community of investors.”
CEO Milind Mehere expanded on this sentiment in the statement. “With the ultimate mission of ‘prosperity for all,’ YieldStreet is making it possible for individual investors to have wealth creation opportunities similar to the top 2%,” he said. “This funding will enable us to bolster our machine learning and data analytics capability for predictive underwriting models, launch new products for non-accredited investors and further fuel our growth towards our mission. I am excited to work with this strong syndicate of investors who understand this opportunity.”
The deal also includes the arrival of Alan Patricof, co-founder of Greycroft, to the YieldStreet advisory board.
“Before YieldStreet, retail investors never had access to institutional quality alternative products,” Patricof said. “We believe that YieldStreet’s leadership team is unmatched and well positioned to deliver on its mission to transform investing.”
Prior to this round, YieldStreet had only raised $3.7 million in equity capital as it focused on diversified alternative asset classes across real estate bridge loans, litigation finance, and commercial finance.
New RealtyMogul CIO Praises the Company’s Avoidance of Land, Hotel and Development Investments
January 23, 2018Los Angeles’ RealtyMogul promoted Chris Fraley from interim chief investment officer to permanent CIO, earlier this month. After the announcement, Fraley told commercial real estate publication, Bisnow, that the company’s “fairly conservative approach” has put it in an optimal position at this point in the current real estate cycle.
“There is certainly a feeling that we are at the top of the cycle given this is one of the longest economic expansions in the past century, from a time perspective,” he told Bisnow. “It is a relief that RealtyMogul has taken a fairly conservative approach by focusing mainly on income investments and light value-add and avoiding traditionally riskier assets like land, hotels and development.”
In 2017, RealtyMogul eclipsed several internal records and finalized transactions holding $566 million worth of capitalization.
Fraley believes that the company can “significantly increase” that number this year.
The Yale grad joined the company in June, bringing over 20 years of experience to the role. Former posts include a tenure as partner at Rockwood Capital, which preceeded the launch of his own real estate investment company, Evolve.
“Being on the operator side of the business really helped me appreciate all the hard work that goes into managing a real estate project,” Fraley said while discussing Evolve with Bisnow. “It has certainly given me greater insight on how to evaluate a potential operating partner as an investor.”
Fraley also shared that when he initially joined the company in an interim capacity in June, he did not intend to stay on full-time.
He gave partial credit for his decision to become a permanent member of the team to the company’s ability to merge research and data with technology.
deBanked Connects With Miami on Thursday, January 25th
January 23, 2018
We’re really looking forward to seeing you at deBanked Connect this week on Thursday at the Gale Hotel in Miami. Our 3-hour networking open bar cocktail party from 5:30pm – 8:30pm is sure to be a great opportunity for funders and ISOs. This event booked up to capacity really far in advance and I apologize to everyone who waited too long and missed out.
Thanks to our incredible sponsors, specifically Everest Business Funding who is the headliner, but also National Funding, Knight Capital Funding, NISO, Grand Capital Funding, and Venture Credit Solutions.
Our next event will undoubtedly sell out as well. SO DON’T WAIT UNTIL IT’S TOO LATE TO SIGN UP! Broker Fair 2018 on May 14 at the William Vale in Brooklyn is our signature event!! With so many big names in the industry sponsoring it, it’s a must-attend event for sales reps and ISOs. You’ll be hearing tons more about Broker Fair in the coming weeks and months and I can’t wait to have you be a part of it.
There will be 4 of us from deBanked at The Gale on Thursday, including myself. If you are interested in being cited in a future deBanked Magazine story, be sure to connect with reporter Paul Sweeney who will be there with us.
Alternative Financier, White Oak Global Advisors, Turns to CIT for Own Unique Needs
January 23, 2018White Oak Global Advisors, an alternative financier and creditor in its own right has turned to CIT Group Inc. in order to organize a $422 million secured loan for its aviation division, the companies announced last week.
White Oak Commercial Aviation, LP, will use the funds to purchase 20 on-lease wide body aircraft engines from GE Capital Aviation Services. Terms of the transaction were not disclosed.
“CIT’s ADG and Capital Markets teams were razor-focused on delivering a financing structure that would work for us while also meeting lender requirements,” said Andre Hakkak, CEO and co-founder of White Oak via release. “This transaction provides us a foundation to strengthen and grow our focus on providing financing solutions for aviation companies.”
John Heskin, managing director and group head for CIT’s Aerospace, Defense & Government Finance (ADG) team led the transaction with senior investment professionals from White Oak.
“We are pleased we could leverage our deep capital markets expertise to provide a creative solution for this senior secured loan syndication,” said Heskin. “Our understanding of the aerospace industry encompasses whole aircraft as well as parts and engines. This enables us to support the entire aerospace ecosystem from lessors and investors to distributors and manufacturers.”
White Oak currently has over $7 billion of capital invested in over 500 companies. The company provides small and medium size enterprises with term loans, asset-based lending, invoice factoring, trade finance, equipment financing and treasury management. It was launched in 2007.
Controversial Legislator Proposes 4% Interest Rate Cap in New Hampshire
January 22, 2018New Hampshire’s Live Free or Die attitude could be challenged by a bill introduced by the state legislature. House Bill 1800-FN-LOCAL, AN ACT relative to usury, proposes a maximum annual rate of interest allowed in all business transactions in which interest is paid or secured to be capped at 4%. Any interest beyond that would automatically warrant a $10,000 fine to the state treasury by the violator. If passed, the law would go into effect beginning April 1, 2018.
New Hampshire currently has no law governing interest rate limits.
One of the Bill’s sponsors, 86-year-old Representative Dick Marple, was arrested twice in 2016. One of those arrests occurred on the day that he was re-elected.
Marple’s interest rate cap bill and the $10,000 penalty therein for violations, is similar to another bill he proposed last month that would recognize “sovereign citizens.” House Bill 1653, would allow individuals to levy $10,000 fines against corporations and municipal agencies for failures to comply with a proposed modified Uniform Commercial Code law.
Marple’s sovereign citizen beliefs played out in a trial last year where he was found guilty of driving on a suspended license. In the Court’s order, the Honorable M. Kristin Spath wrote, “Although the Court urged Mr. Marple to actively participate in the trial, he declined to do so because of his continued belief that this Court does not have the authority or jurisdiction to hear these matters.”
Lending Disruptor, Rocket Mortgage, Announces First eSports Sponsorship
January 22, 2018Rocket Mortgage has thrown its hat into the burgeoning eSports ring, Quicken Loans, its parent company, announced on Friday. The brand has entered into a sponsorship agreement with the 100 Thieves’ League of Legends division.
Citing a synergy between the end-to-end online and on-demand mortgage product and the “disruptive” world of eSports gaming, Quicken Loans CEO, Jay Farner said via release that Rocket Mortgage is “aligning (its) brand with a subculture that embodies what we stand for as a company – industry disrupting and groundbreaking innovation.”
The deal includes the naming rights to The Rocket Mortgage Team House in Venice, California, logo placement on the 100 Thieves team jerseys and integration into the team’s social media presence.
“The Rocket Mortgage Team House gives us the chance to practice constantly, call team meetings in minutes and build synergy both in and outside of gaming as a team,” said Neil “Pr0lly” Hammad, head coach of 100 Thieves, veteran LoL player and most recently the head coach at H2k-Gaming where he was awarded the title for the EU LCS’s Coach of the Split on three separate occasions. “This is crucial for maintaining a competitive environment, and by handing us the keys to this team house, Rocket Mortgage is helping us prepare to destroy the NA LCS.”
The 100 Thieves eSports team as founded in 2016. In addition to League of Legends, the club has also fielded a team for the popular video game title, Call of Duty.
As for Rocket’s parent, Quicken Loans, the Detroit-based lender is the second largest retail home mortgage lender on U.S. soil. The company closed upwards of $400 billion of mortgage volume across the country between 2013 and 2017.
BB&T Taps $50M for Cutting Edge Tech Investments
January 22, 2018
BB&T has earmarked $50M for a deep dive into “emerging digital technology,” the company announced last week. The bank will look to either invest in, or acquire companies in the space.
“The sizable investment” is meant to improve the customer-experience for BB&T’s client base while simultaneously lowering operating costs.
“This sizable investment in financial technology companies represents an important strategic milestone in our digital business transformation,” said BB&T chairman and CEO Kelly S. King via release.
”We’re excited about the possibility of new partnerships and innovative approaches to provide the best possible experience for our clients.”
The bank began its focus on digital business in 2015 following the appointment of W. Bennett Bradley as chief digital officer.
“A significant investment in fintech puts BB&T on an aggressive pace to more quickly navigate our digital road map and further foster a culture of innovation throughout the company,” Bradley said in the same release.. “Things are changing rapidly and we, like many financial institutions, have to move faster to meet and exceed our clients’ expectations. While an investment in fintech is just one component of our digital transformation, it’s a powerful way for us to gain greater access to new technologies and talent.”
BB&T currently handles more than $220B in assets and a market capitalization of $37B.
Fundbox Launches Fuse, A Funding Express Lane Designed to Increase SaaS ‘Stickiness’
January 22, 2018Fundbox announced the launch of Fuse, a new credit-integration service, on Monday morning. Via Fuse, SaaS business providers can now access Fundbox from within their workflows with just three lines of code.
“For small business owners, the process of applying for financing continues to be an arduous and demotivating journey that for many, does not end well,” the company stated in a release. “Since 2008 when the economic bubble burst, most banks made their small business underwriting processes more stringent in an attempt to mitigate potential risks from defaults.”
According to the Biz2Credit Small Business Lending Index, in December 2017 only 25.3% of small business loan applicants are being approved for funding, leaving the other 74.4% struggling to find alternative avenues through which to pay vendors and stay afloat.
Thus, not only are small business owners hampered, but SaaS providers that cater to these budding enterprises take a blow as well.
Citing a 2016 survey developed by the SaaS growth marketing agency, Cobloom, the average SaaS provider serving small businesses faces between 5-7% customer churn on an annual basis. A significant factor for this volatility is strains on customer’s cash flow.
Fundbox believes that they can alleviate this situation by offering easy access to its lending products via the SaaS services themselves.
“For our SaaS partners, we intentionally created a solution that was easy to integrate, increases service value and customer stickiness with just a few lines of code,” said Sebastian Rymarz, chief business officer at Fundbox via statement. “And for small business owners, we’ve ‘democratized’ access to credit and the underwriting process right from within your favorite business app or platform.”
“We’re excited to partner with Fundbox and to add Fuse to our service,” said Ryan Jackson, founder and CEO of Paid, via release. “Anyone who works closely with small business owners knows that time and cash flow are their two most important assets. With Fundbox Fuse, our customers get the convenience of accessing credit without having to leave our workflow and we get the additional service value and retention stickiness.”
