Seattle, Washington (PRWEB) December 22, 2015
Crowdfund.co, a website wholly owned and operated by the Merit Harbor Group, LLC, announces a service expansion of the company’s debt and equity crowdfunding into the real estate investment banking market. The move comes as several clients operating in commercial real estate have expressed interest in combining institutional capital raises with individual, accredited investors. Luckily the company has maintained an interest in and education of how investment crowdfunding will ultimately impact their business, including offering Reg D 506(c) alongside the new Regulation A+.
Real estate investment banking—facilitated through both debt and equity crowdfunding—is likely to continue to be one of the faster growing segments in the crowdfunding market. Crowdfund.co is fully-equipped to facilitate commercial real estate transactions involving both accredited and institutional investors. “At the end of the day, it does not really matter how we fill out the capital stack,” says Craig Dickens, CEO. “All that matters is that we run a successful, clean and legitimate process and that we are able to meet the needs of our clients looking to raise capital.”
“We consider ourselves a traditional private investment bank,” says Nate Nead, Director, “but the latest legislative changes are creating demand for offerings that are structured much differently than traditional investment banks operate. We are simply going with the flow and providing our clients the flexibility in raising the capital they desire through the methods that make the most sense for their particular raise,” Nead says.
While the company sees the changes brought about by the JOBS Act as revolutionary, they do not expect their business to be significantly altered. “Each deal still requires someone to drive it to the bank,” says Nead. “That is true regardless of whether you are sourcing capital for real estate or for a private stock transaction. Just because a deal is posted on an equity crowdfunding site, does not ensure the company will be funded.” Crowdfund.co and its affiliates maintain that while crowdfunding will have a significant impact on investment banking and traditional finance, there remains more upside opportunities, particularly as clients become more educated as securities issuers.
“We still spend a great deal of time talking clients out of one form of capital formation or another, Nead says. "Not everyone is a good candidate for Regulation A+, for instance. There is certainly significant opportunity in debt and equity crowdfunding, but too many issuers are trying to put square pegs in round holes. With our business and real estate clients, we are helping to consult them down the proper path for capital formation.” That path could include Regulation D 506(c), Regulation A+ or perhaps, eventually Title III of the JOBS Act, when it becomes available in May.
Crowdfund.co is owned and operated by the Merit Harbor Group, LLC. The company is a middle-market investment bank with offices across the country. The team consists of both investment bankers and expert capital raising and M&A consultants that assist clients in transactions involving growth, acquisition, merger and anything in between. The company is keenly focused on both providing growth capital for companies that desperately need outside financing to go to the next level, including those managing real estate investments. By combining traditional investment banking and some of today’s equity crowdfunding tools, the company maintains it can assist clients in sourcing the most efficient and cost-effective capital and meet goals in a timely manner.