Raising Money

The Capital Formation Process
Monmouth Venture Partners does principal investing transactions for its own portfolio, and also advises businesses on how to obtain from other sources the debt and equity capital they need to grow organically as well as to fund strategic initiatives such as acquisitions. We can also work with you to restructure debt and find new sources of capital to address liquidity concerns.

Regardless of how you have financed your company to date, Monmouth Venture Partners will take the time to understand your business, its strategy, and competitive position, as well as consider how comparable companies within your industry and at similar stages of development structure their balance sheets. We then analyze different capital structures to determine the optimal mix of debt and equity for your specific situation. Finally, we consider current market conditions and terms for different types of capital and adjust the idealized capital structure after taking into account these external factors.

Capital Raising Services
Once we have determined the optimal capital structure that can be achieved for your business, we work with you to develop an overall financing strategy and project plan, and act as project manager for a capital raising initiative. This covers all phases, from inception to definitive agreements and closing, and typically includes:

Assisting in the preparation of various lender and investor marketing materials, including an executive summary, management presentation or “pitch book”, financial projections, and a business plan;

Identifying, contacting and scheduling appointments with selected financing sources, as agreed, furnishing these interested parties with copies of the marketing materials, and attending all necessary meetings;

Assisting in the negotiation of terms and conditions of any financing proposals; and,

Working with your legal counsel on drafting the necessary financing documents.

Debt Financing
Monmouth Venture Partners has relationships with a large variety of traditional commercial banks, asset based lenders, specialty finance companies, and alternative sources of capital such as micro-lenders, leasing companies, subordinated debt providers and mezzanine capital funds. Debt is typically the cheapest source of capital when the cash flow is available to service the required principal and interest payments. Our Managing Partner began his career doing Project Finance for Bank of America in San Franciso, and was trained as a corporate lender, so he understands how banks make their credit decisions and price risk. By keeping abreast of current trends in interest rates, fees, loan structures, and loan appetite from different sources, we know which lenders are good ones, offering competitive rates and terms, and are most appropriate for our clients.

Equity Financing
As a merchant bank, Monmouth Venture Partners seeks to invest its own capital in promising middle-market businesses, whether private or publicly traded. Depending on the situation, we may take an active operating role, usually in an interim capacity. At other times our involvement is more passive, typically as a board member or consultant to our portfolio companies, providing strategic guidance, capital formation and business development assistance to management.

In our capacity as an agent instead of a principal, we work closely with myriad institutional investors such as venture capital, private equity and hedge funds, corporate strategic investors, and other sources of institutional capital. Through our broker dealer relationships, we also have access to high-net-worth investors that have an appetite for quality deals involving private and public companies, including distressed situations. The investment motivations of all of these sources vary, so it is important to work with an advisor who understands the types of opportunity that each is likely to find attractive, how to approach them to generate their interest, and how to present a deal so it gets favorable consideration.

Summary
Because our sources cover the full spectrum of debt and equity structures for financings of all sizes and for companies at any stage of development, we are able to help many companies acquire the capital they need.