With investing success, comes opportunities and financial complexity. At Metropolitan Capital, we offer truly integrated financial consulting that takes into account all aspects of your personal and professional investments and financial needs together. Click on the Case Studies below to learn more.
Commercial & Private Banking
Our personalized banking solutions offer financial flexibility for investors to capitalize on timely investments and opportunities as well as manage periods of concentrated liquidity or irregular income streams.
Our team of wealth consulting professionals will ensure coordination of both personal and professional investments to employ tax-efficient investment structures, trust and estate planning strategies and planning for charitable giving and wealth transfer. We also work with trusted financial partners who can provide you with the financial advice you need to manage your entire balance sheet now and in the future.
Clients look to us to help identify, evaluate and transact on investment opportunities across the capital structure. Leveraging the extensive network created across the Universal Bank, we have the unique ability to match capital sources with investors, as well as proven experience running buy and sell-side mandates.
Corporate Development Solutions
Through our Corporate Development Solutions group, we can provide specialized services to help Investors execute their business and capital planning strategies. We can perform marketing and industry evaluations, perform due diligence, prepare financial models and also assist with marketing and operational needs that arise with each investment. Additionally, we can serve as a debt marketing agent and arrange creative debt solutions for our clients as well.
Private Equity Investors Obtain Bridge Loan Collateralized by Future Carried Interest Disbursements to Fund New Investments
Two seasoned private equity investors were seeking capital to help fund new investments. Not wanting to prematurely sell their existing interests in previous investments or liquidate their holdings elsewhere to finance the transactions, the investors asked their investment banker at Goldman Sachs who might help them in obtaining financing. Having successfully assisted many clients of Goldman Sachs in the past, the investment banker was confident in Metropolitan Capital’s ability to help the two investors and facilitated an introduction.
Metropolitan Capital Solutions
MetCap was able to source and analyze multiple term sheets for the investors. MetCap helped select and structure an optimal arrangement with a lender that utilized the future carried interest disbursements of the investors as collateral without them having to dilute or liquidate their existing portfolio and provided a non-recourse bridge loan that was sufficient to fund new transactions. Further, the investors appreciated MetCap’s assistance and expertise which allowed them to focus their attention on the new investments while MetCap simultaneously worked to secure the funding.
Cross-Collateralized Loans Fill Gap in Construction Financing for Bay Area Apartments
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.
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.
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.