Capital Engine® Powering Online Capital Markets
Overview
Capital Engine® is a tech-enabled company, that provides customized private capital, secondary market infrastructure and investor management solutions for investment banks, regulated broker-dealers, investment platforms, law firms, and real estate funds.
Capital Engine® is on a mission to transform the $2.5 trillion exempt private capital markets infrastructure and subsequent secondaries trading landscape, creating an organized market for private capital, digital assets and other exempt securities.
Our rapidly expanding business is already cash flow positive, and we have significant traction, with the proposed closing of a transformative acquisition, and establishment of a new commercial real estate brand USA REIT (primary / secondaries trading platform).
- $450M of capital has been raised through our Investment Marketplace or client portals powered by our software over the past five years, which validates the viability of our technology and approach
- $600K of revenue* has been generated from Private Label customers and Investment Marketplace for online capital raising.
- We recently entered into a definitive agreement to acquire a Private Placement Agent and Broker Dealer, Mallory Capital Group, which has raised $10B since their inception
- $250M of active capital raise mandates with a pipeline of $650M of opportunities despite limited business development efforts to date.
* Revenue does not include any success based fees on capital raises done, and with the recent acquisition of the broker dealer, revenue will be significantly higher.
Company Status
Market Opportunity
Private markets are rapidly transforming and have surpassed public markets by some measures to become the more popular way for companies to raise money.
According to the most recent SEC data (2022), exempt offerings accounted for approximately $4.45 trillion in capital raising.
Whereas, publicly raised funds accounted for $1.23 trillion in fundraising. That’s roughly 3.5x more capital raised in private markets than in public markets.
Secondary Market Trading Growth
Globally, companies are staying private for longer, partly driven by the growing availability of private equity, which offers an alternative source of funding. The secondary market has grown to almost $100bn, a six-fold increase during the past decade and is on track to exceed $130bn in 2023.
The growth of private capital markets is fueled by companies eager to raise money without the regulatory burdens of going public, and investors looking for new ways to score large payouts outside of the stock and bond market.
To empower investment professional and advisors (wealth managers, private banks, 1031 exchanges, broker dealers, sponsors, family offices, RIAs, GP/LPs, social impact and real estate funds) with cloud based private capital and investor management software, to manage their own branded digital investment platform, scaling their business, bringing simplicity, transparency and accessibility to secure online investing.
PRIVATE MARKETS GROWING
PUBLIC MARKETS SHRINKING
$1.23 T
Public Markets
$4.45 T
Private Markets
$2.3 T
Private Placements
2022
* Private capital markets are rapidly transforming and have surpassed public markets to become the more popular way for companies to raise capital in the US. According to the most recent SEC data, for the 12 month period ending June 30, 2022, exempt offerings accounted for approx. $4.45 trillion in capital raising, whereas during that same time period, publicly raised funds accounted for roughly $1.23 trillion in fundraising. That's 3.5 times more capital raised in the private markets than in the public markets.
10
Years
6 X
Growth
$130 B
Secondary Markets
2023
* Globally, companies are staying private for longer, partly driven by the growing availability of private equity, which offers an alternative source of funding. The secondaries market, where buyers and sellers trade existing interests in private equity funds and their portfolio companies, has grown to $130 billion, a six-fold increase during the past decade.
US Broker Dealer / ATS
Capital Engine Continues Strategic Growth with Acquisition of Mallory Capital Group
With over $10 billion raised and a combined 80 years of capital raising and advisory experience, Mallory Capital Group is a leading private securities placement agent that raises institutional and private capital
- Capital Engine® entered into a definitive agreement to acquire Mallory Capital Group, a FINRA-registered broker-dealer in March 2023
- Capital Engine® will reverse merge its tech-enabled exempt private securities platform into broker-dealer
- Enable company to directly receive transaction commissions
- Radically improve the economics of Capital Engine® tiered business ecosystem and revenue opportunities
- Apply to operate an Alternative Trading System (ATS) in 2024 under Exchange Act Rule 3a1-1(a) providing secondaries trading / liquidity
- ATS will support investing and trading in exempt private securities, digital and fractionalized assets
Private securities and alternative investments are not readily available to the general public. Thus, the average individual retail investor is denied access to potentially attractive investments in some of the world’s fastest growing enterprises.
