Case Studies

At Metropolitan Capital, we deliver truly integrated and personalized financial consulting for our clients.  With our consultative approach, we create value through responsive, creative and customized solutions in a variety of capacities, sectors and locations. Click on the case studies below to learn more.

Entrepreneurs

Businesses

High Net Worth Individuals

Family Offices

Investors

Entrepreneurs

  • Entrepreneur Utilizes Full Suite of Universal Banking Services to Grow Business into $35 Million Enterprise

    Client Background

    Seeing an opportunity to leverage professional expertise and opportunistic timing, a successful M&A partner at a top law firm, began identifying distressed industrial and manufacturing companies to acquire following the financial downturn in 2008. However, the client initially faced capital challenges due to a negative personal net worth and needed to find a financial partner that was willing to provide the upfront capital. MetCap was able to envision the potential of the client’s entrepreneurial outlook and created an early stage line of credit in which the client could use to make the first investment.

    Our client now owns four companies totaling $35MM in revenue and $10MM EBITDA and has looked to MetCap every step of the way for guidance and assistance in growing the platform.
     

    SOLUTIONS DELIVERED


    Commercial Banking

    MetCap initially provided a line of credit that has now grown to $5.5MM and enabled the client to make each of the four acquisitions. MetCap continues to provide commercial banking needs for the companies and holding company.

    Investment Banking

    MetCap has completed two key capital raises for the client in which the proceeds from the capital raises were used to exchange the existing preferred equity for preferred debt. The client now owns 100% of the equity in the holding company.

    Private Banking

    The client is a private banking client and holds personal deposits for himself and family members.

    MetCap Network

    During each of the capital raises, MetCap was able to turn to its investor network and high networth client base to source the entirety of capital sought. The ability to offer clients proprietary and quality deal flow in addition to a full suite of financial services is a unique differentiator of Universal Banking for small and medium sized businesses.

  • MetCap’s Appeal to Young Entrepreneurs Provides Framework for Long-Standing Universal Banking Relationship with Successful Lighting Company

    Client Background

    A Chicago area firefighter normally in the business of putting fires out, decided to put the lights on and launched a commercial lighting business. MetCap’s draw to young entrepreneurs helped pave the way for an early stage line of credit that enabled the individual to make the necessary investments to grow his business. In just a few years, the company successfully expanded into new markets, brought on new hires and has enjoyed consistent profitability. The success of his business led our client to seek diversification of his wealth portfolio outside of his company. Leveraging MetCap’s knowledge and deep understanding of the asset management space, our wealth consulting advisory team identified the ideal asset manager to help our client achieve his investment goals.

    More important than anything, MetCap developed a meaningful and trusted partnership that extends well beyond a traditional business loan relationship. As new opportunities and challenges arise for our client, MetCap has the client’s best interest in mind, and as a result, the client continues to turn to MetCap for solutions and advice every step of the way.
     

    SOLUTIONS DELIVERED


    Commercial Banking

    MetCap’s interest in partnering with promising early stage companies provided the framework for a capital solution for our client that helped expand the commercial lighting company

    Wealth Consulting

    A complete understanding of the client’s modest portfolio, investment goals, and interests in sustainability and emerging market investing allowed MetCap to find the right financial advisor. Additionally, MetCap has provided assistance to the client in formulating 401k plans and employee benefit programs as the company continues to grow.

  • MetCap’s Differentiated Position as a Universal Bank for Entrepreneurs and Deep Network of Relationships Prove to be a Perfect Match for Enterprising Brothers

    Client Background

    Long standing clients of the bank, two entrepreneurial brothers were looking for strategic add-on acquisitions for their digital media company. In addition, they were seeking investment opportunities that would also serve to diversify their investment holdings. Finding a traditional financial partner that could assist in the sourcing, analyzing and capital facilitation of the investments was a difficult assignment. MetCap’s differentiated position as a Universal Bank for entrepreneurs and deep network of relationships proved to be a perfect match for the brothers.

    The length and familiarity of the relationship with MetCap and its full spectrum of financial services allowed the clients to seamlessly work in concert within the Universal Bank to make strategic and timely investments and ultimately grow their investment portfolio.
     

    SOLUTIONS DELIVERED


    Commercial Banking

    Over the years, MetCap has provided loan facilities to the clients to make investments in the real estate, bar and restaurant and digital media industries. MetCap tailored each loan to allow for the clients to retain as much equity and upside potential as possible. The clients continue to hold deposits and loans with the Commercial Bank for their companies and holdings.

    Investment Banking

    MetCap provides on-going assistance in evaluating the merits and portfolio alignment of new opportunities as they arise as well as buy and sell-side advisory to complete the transactions. Most recently, MetCap provided due diligence and help with structuring and closing the largest add-on acquisition to date for their digital media platform.

    Private Banking

    In addition to commercial deposits and loans, the clients individually hold deposits and loans with the bank.

Businesses

  • Innovative Loan Structure Allows Entrepreneur to Maintain Equity Control and Reach Inflection Point in Growth and Valuation

    Client Background

    Our client, a highly successful entrepreneur and investor, created an online incubator and angel investment platform. Using his experiences as an entrepreneur, he saw value in creating a platform that could connect startups with investors and as well as help entrepreneurs navigate the legal, tax and financial aspects of growing a business.

    In order to scale the business, the company needed additional capital to fund the marketing and operations of the business as well as to build out the technology behind the platform. Because the majority of the founder’s assets were concentrated in numerous private investments and the complex nature of his personal balance sheet, banks were unwilling to lend the necessary growth capital without taking an equity stake in his company. Confident that the platform was close to reaching an inflection point in its growth and valuation, the founder was reluctant to raise outside equity that would dilute his upside potential.

    Drawing on its ability to provide innovative lending solutions for business owners with non-traditional balance sheets and illiquid assets, Metropolitan Capital helped the company bridge the gap from pre-revenue to monetization without diluting the founder’s equity.
     

    SOLUTIONS DELIVERED


    Private Banking

    Metcap created two separate loans, one guaranteed by the founder and the other guaranteed by the founder’s venture capital fund, totaling $11 million. Metcap’s willingness to serve as the secondary lender was critical to the success of the transaction.

    Commercial Banking

    Fourteen months after the initial loans were made, the platform has since transitioned to a subscription-based model and the valuation of the company has increased significantly. Because of the trusted relationship that has developed, Metropolitan Capital was asked to be the exclusive banking partner for the platform and is now serving the unique financial needs of the platform’s high-growth startups and their founders.

  • Universal Banking Platform Supports Pet Boarding and Grooming Company’s Growth from $2 Million to $16 Million

    Client Background

    When Metcap was first introduced to a company that provides pet boarding and grooming services in 2010, the company had annual revenues of approximately $2 million and operated four locations. The company also had an ownership team with an ambitious vision for growing the operation, all with varying personal financial resources.

    In order to achieve its vision, the company would need to form a banking relationship that could provide objective advice and creative solutions to address the challenges and opportunities that come with rapid expansion. On the outset, the company would need to raise additional debt and equity capital to fuel growth while accounting for shareholders’ varying financial position and goals. Additionally, the company would need to consider strategic acquisitions that could accelerate growth and expand the company’s footprint. MetCap’s complete suite of universal banking solutions proved to be an ideal fit for the company and its founders.

    In growing from four locations and $2 million in revenue to 14 locations (with a 15th under construction) and more than $16 million in six years, the company has turned to Metropolitan Capital for strategic advice every step of the way.
     

    SOLUTIONS DELIVERED


    Private Banking

    The relationship began with Metcap making a relatively small loan to the company’s CEO, so that he could contribute additional capital to the company and receive equity credit.

    Investment Banking

    As the business continued to grow, Metcap helped negotiate and complete an acquisition that tripled the size of its operations. Once the company reached a stage where it made sense to raise additional equity capital, the bank introduced its network of high net-worth individuals and family offices that were eager to invest in the growing company. Since then, Metcap has successfully completed a second equity capital raise for the company.

    Commercial Banking

    Metcap structured a loan facility that has grown from $300,000 to $4.5 million as the company’s capital needs increased. Additionally, the loan facility includes creative terms to account for shareholder’s varying contributions and allows individuals to invest with a personal guarantee rather than writing an additional check.

  • Tailored Capital Solutions Provide Coffee Roaster and Retailer with Needed Flexibility to Grow and Expand Business

    Client Background

    Rich in flavor and history, Bridgeport Coffee Company has been serving exceptional roasted coffees in the iconic Bridgeport neighborhood located in the south side of Chicago since 2004. The company provides its fair trade and organic roasted coffees to the food & beverage and hospitality industries. Seeing an opportunity to serve its local community and provide an alternative to the mass market coffee shops, the company opened its first retail location in 2012.

    Building on the success of the first location and its wholesale operations, the company sought to expand its footprint into other neighborhoods and retail channels. The company looked to its existing lender at the time to provide the additional growth capital necessary to build out the new stores and roastery. The company quickly discovered that its lender and most other banks were unwilling to lend to the client based on its size and the economic geography of its operations.

    MetCap was very fortunate to be introduced to the owner of Bridgeport Coffee during this time. By taking the time to understand the company and its ownership, MetCap felt comfortable providing a tailored capital solution that was flexible enough to provide room to expand and grow the business.

    Now operating 4 shop locations, a roastery and selling products in several retail channels throughout the country, Bridgeport Coffee has turned to MetCap for financing solutions and strategic advice every step of the way.
     

    SOLUTIONS DELIVERED


    Commercial Banking

    Metcap initially refinanced the company’s existing line of credit, leveraging the personal guarantees of the founders as collateral for the loan. Since then, MetCap has provided loans for each of the 4 retail location expansions and continues to serve as a trusted advisor and partner to the company on various company matters.

  • Unexpected Union Liability Poses Grave Threat to Company; MetCap’s National Footprint and Suite of Universal Banking Services Enable Company to Settle Liability and Plan for Future

    Client Background

    A fast growing construction services company in California experienced an almost detrimental event when a union audit uncovered a significant unfunded fringe benefit liability. The company’s capital was tied up in expanding promising lines of business. The founder, a hard-working entrepreneur, was faced with a difficult dilemma. He needed an immediate capital solution for the union liability that would also allow the company to continue operating. Further adding to the situation, a competitor in the industry was offering to buy the company from the owner at a low valuation. The transaction was not appealing to the owner; however, it would provide the necessary capital to satisfy the union liability and existing debtholders.

    It was at this time that MetCap was introduced to the founder through a mutual relationship and became engaged as the company’s financial advisor. The MetCap team went to work to find a capital provider who could understand the story, handle challenging negotiations with the union, and be creative with the investment terms and structure.

    The company also looked to MetCap to help evaluate the existing offer from the strategic player. Given the low valuation of the existing offer, MetCap encouraged the owner to pursue alternative options that maximized the value of the company and allowed the owner to participate in the upside potential of the company.

    Because of the Universal Banking platform of MetCap, the owner was able to rely on MetCap to help solve for near term and long term challenges and allow the owner to focus on running the business and positioning himself and the company for success in the future.
     

    SOLUTIONS DELIVERED


    Corporate Development

    MetCap, through its national footprint, was able to identify a lender in the Midwest who could understand the situation and solve for the immediate capital need. This lender was also successful in navigating union negotiations and worked hand in hand with MetCap and the company to create a flexible and timely investment structure.

    Investment Banking

    MetCap was engaged to run a process on behalf of the company to solicit the interest of majority and minority equity investors as well as debt providers for the company. The company received multiple indications of interests and MetCap assisted the client in analyzing the merits and ramifications of each option, ultimately selecting the option that best served the interests of both the founder and the company.

High Net Worth Individuals

  • Digital Marketing CEO Capitalizes on Full Spectrum of Universal Banking Services to Diversify, Grow and Manage Net Worth

    Client Background

    Our client, the CEO of a digital marketing firm, co-founded the company in his late 20s and successfully grew the business into a multimillion dollar enterprise. The success of the company has created a broad set of challenges and opportunities for the CEO.

    In addition to investing in the growth of the company, the CEO used the income to build a portfolio of public equity investments. He also invested in real estate, startups, and other small private investments across the country that were brought to him by friends and family. Evaluating the financial merits of these individual private investments became increasingly challenging for the CEO, whose expertise focused on marketing and business strategy. In addition to assistance in analyzing new opportunities that were brought to him, the CEO wanted to diversify his holdings by getting access to professionally-sourced private equity and real estate investments.

    The large number of different private investments held by the CEO meant that he didn’t have visibility into his total net worth and monthly cash flows. This lack of visibility made it difficult for the CEO to build a comprehensive wealth management plan and understand how the various elements of his portfolio could be working together to achieve his longer-term goals.

    Utilizing a number of services and capabilities offered through the Universal Banking platform, Metropolitan Capital assisted the client in diversifying his equity holdings and generating a clear picture of his consolidated cash flows and net worth.
     

    SOLUTIONS DELIVERED


    Private Banking

    Metcap issued a $2 million line of credit for the CEO so that he could increase his investment size threshold and thereby generate greater returns as well as eliminate the need to liquidate his stock holdings to access funds.

    Investment Banking

    The CEO has access to Metcap’s proprietary deal flow as well as the expertise to help analyze the financial merits of prospective investment opportunities as they arise.

    Wealth Consulting

    Metropolitan Capital’s consultative approach to private wealth management has helped the CEO gain a clear picture of his comprehensive financial situation and evaluate new private investment opportunities. Acting as the client’s outsourced personal CFO, Metropolitan Capital helps the client analyze any new investments that he is presented with. Metropolitan Capital also has created consolidated financial statements and models that give the client visibility into how various decisions will affect his net worth and future cash flows.

  • Creative Lending Solution Enables Tech CEO to Satisfy Near-Term Liquidity Needs

    Client Background

    In 2013, Goldman Sach referred to MetCap a prospective client who was the CEO of a private, cloud-based technology company in Silicon Valley. The executive needed to access more than $500,000 in personal liquidity to retire an income-tax liability related to the sale of his previous company.

    Because the CEO’s compensation was heavily weighted in favor of equity vs. cash income and the majority of his wealth was in the form of stock options, most banks were unwilling to extend a loan of this size because of the illiquid and non-traditional nature of his wealth profile. Adding to the liquidity challenge was the fact that company was majority-owned by a private equity firm and the CEO would need permission to sell any company stock. Further, the CEO’s fiduciary responsibility to his fellow shareholders prevented him from liquidating his shares at a time that would be detrimental to the company’s future.

    Drawing on its ability to provide creative lending solutions for individuals with non-traditional balance sheets and illiquid assets, MetCap provided the CEO access to liquidity and a broad array of wealth consulting services.
     

    SOLUTIONS DELIVERED


    Private Banking

    Metcap structured a $750,000 loan for the executive allowing him to pay off the income tax liability and access additional working capital. The loan was structured so that the options and shares were not used as direct collateral, allowing the CEO to access capital without requiring the company’s consent. At MetCap grew more familiar with the CEO and the company, the loan increased to $1.9 million.

  • Long-Standing Relationships and Experience Key to Crafting Unique Loan Structure to Solve Tech Executive’s $2.5 Million Stock Option Tax Liability

    Client Background

    A heavily recruited product engineer in Silicon Valley was offered a very lucrative job opportunity at a fully capitalized and high-profile tech startup. The individual held a considerable amount of vested options in his current employer, which was readying to go public. In order to exercise the options, he needed roughly $2.5 million, most of which would be needed to satisfy the tax liability associated with the stock compensation. The compensation package of the new startup was heavily loaded with stock options as well, leaving the individual with a large cash shortfall. One of the members of a venture capital firm supporting the new startup was a client of MetCap and had previously engaged the bank under similar circumstances. An introduction was made and MetCap quickly worked to tailor a loan facility that enabled the individual to exercise his options within the mandated 90 day window from leaving his old firm and enabled him to begin work at the new firm. The major challenges for MetCap in structuring the transaction were the lack of available collateral to underwrite the loan and the individual’s ability to service the monthly interest payments.

    Leveraging MetCap’s long-standing relationships with NewCo’s executive team and the sponsors backing the venture, the parties worked hand in hand to craft a solution that would satisfy the collateral requirements and provide the cash flow needed to service the interest payments on the loan.
     

    SOLUTIONS DELIVERED


    Private Banking

    To underwrite the loan, MetCap structured a put contract on future vested shares of NewCo between the individual and company, listing MetCap as the beneficiary. In case the loan went sideways, the company would be obligated to buy enough shares from the individual to make MetCap whole. In addition, the individual was able negotiate an annual cash bonus that would service the annual interest payments for the life of the loan. Taking these components together, along with a small pledge of an international real estate asset owned by the individual's family, allowed MetCap to gain comfort around the risk and underwrite the loan.

    MetCap’s ability to step in and work fluidly with the individual, the executives at the new firm and the sponsors behind the deal to craft a mutually beneficial arrangement was well received by all the parties. Since this transaction, MetCap has been engaged to work with the parties on other various banking assignments.

Family Offices

  • Family Office Practice Delivers Comprehensive, Coordinated View of Client’s Personal Wealth and Family Business Income

    Client Background

    Our client, a high net worth individual, was looking for peace of mind about her wealth and clarity about the strategies her advisors were implementing on her behalf. In addition to owning shares of a second-generation family business with her siblings, the client owned three residential real estate properties and held approximately $10 million in stocks and bonds.

    To help her oversee these disparate assets and income sources, the client had seven different advisors focusing on various accounting, estate planning, legal, and financial planning aspects of her estate. Because these advisors worked independently of each other, the strategies they implemented often failed to account for the cumulative impact on the family business and her longterm financial goals. Further, due to the complexity of the client’s wealth portfolio, projecting monthly cash flows and consolidated financial statements proved to be a challenging task.

    By overseeing and coordinating the client’s team of professional advisors, MetCap provided the client a comprehensive, coordinated view of her personal wealth and family business income.
     

    SOLUTIONS DELIVERED


    Wealth Consulting

    • Ensured that each advisor developed strategies that aligned with the client’s financial goals
    • Reviewed advisory fees for reasonableness
    • Held quarterly meetings with the client to provide a global view of cash flows and financial performance as well as rationale behind newly implemented strategies
    • Ensured client’s portfolio generated a stream of income that was sufficient to support the client’s lifestyle and spending needs
    • Worked in concert with client’s attorneys and siblings to create estate planning strategies that would maximize wealth transfer to her children and would be agreeable to the owners of the family business
    • Facilitated meetings with the client’s children to explain the estate plan and the mechanics of the family business
  • Universal Bank Offers Comprehensive Financial Solutions for Real Estate Investor’s Portfolio and Family Office

    Client Background

    Our client, a successful Real Estate investor, was first introduced to MetCap by a long-term relationship of the firm. As the individual continued to expand his real estate portfolio, the bulk of his wealth was concentrated in non-liquid real estate assets. To fund additional investments, our client needed a banking partner that could provide the necessary capital without the traditional upfront liquidity commitments and constraints. Further, as the wealth profile and financial needs of the client expanded rapidly, MetCap integrated scalable and tailored financial services that best served the clients evolving needs.

    Initially providing a non-traditional debt facility for the client, the relationship seamlessly expanded to include a multitude of services for the client under the Universal Banking platform.
     

    SOLUTIONS DELIVERED


    Private Banking

    MetCap arranged a non-traditional loan facility leveraging personal guarantees and the investor’s successful real estate investment track record that enabled the client to make additional real estate investment plays without prematurely selling or liquidating his existing portfolio.

    Wealth Consulting

    Due to a recent sizable liquidity event, the Client asked MetCap to find the right investment advisory team for his family office. MetCap arranged the due diligence and hiring process and is still currently retained by the Client to ensure the advisory team is working in concert together and in the Client’s best interests. MetCap has also assisted with the client’s philanthropic activities, helping to formulate the mission and vision of the client’s charitable activities.

    Investment Banking

    MetCap has completed several capital raise assignments for the client to date and provides on-going assistance and expertise in analyzing the financial merits of prospective private equity and venture capital investment opportunities as they arise.

Investors

  • Cross-Collateralized Loans Fill Gap in Construction Financing for Bay Area Apartments

    Client Background

    In 2016, MetCap worked with a team of Bay Area investors to finance the acquisition of a bar in San Francisco. Five months later, the lead investor from that group came to MetCap with a new business opportunity and a new challenge.

    The investor had teamed up with two other investors to purchase a vacant building in an emerging urban community in Oakland with the intent to renovate it into a 27-unit apartment complex. After purchasing the building and preparing the site for renovation, the lender would not recognize the tenant improvements when assessing the building’s collateral value. As a result, the maximum loan the bank was willing to underwrite was a $1 million short of completing the project.

    The team of investors had limited options for securing the necessary funding. Raising outside equity capital was unappealing as it would dilute the investors’ shares and upside potential. Tapping their personal wealth proved challenging as the investors had outstanding margin loans against their most liquid personal assets. They needed to find a financial partner who understood the risks and could create an innovative lending solution that would enable the project to move forward.

    Based on its deep experience working with real estate investors and other business owners, MetCap was able to design and underwrite a creative loan structure that allowed the investors to leverage their personal balance sheets and secure the funding needed to finish construction. With the funds from the secondary construction loan in place, the investors completed the project. MetCap has continued to work with the three investors, providing debt financing and creative financial solutions for other real estate-related projects.
     

    SOLUTIONS DELIVERED


    Private Banking

    Using the securities held at the wirehouses as the primary source of collateral, MetCap created a cross-collateralized loan pool that provided the investor group a secondary construction loan. MetCap worked closely with the investors and wirehouses to create triparty agreements that repaid the margin loans and freed up the securities to be pledged as collateral.

    Investment Banking

    The team of investors came to MetCap again with a unique 49-unit real estate investment opportunity. MetCap was able to underwrite a loan quickly based on its long-standing relationship with the investors and allowed the investors to expedite the closing in lieu of traditional bank loan process. Additionally, the investors asked MetCap to find outside equity investors to participate in the transaction. MetCap was able to exclusively source the additional capital from its existing client network. The ability to quickly match sources and uses of capital within its network is a key component to MetCap’s value proposition.