When it comes to financing growth for companies that are in relatively unknown industries there are options. At Elan Alternative Group, Luke Andrew Powell has been educating these small industry executives on utilizing debt financing. Traditionally in the Bay Area, small companies think the best solution is to raise equity capital. Typically, equity capital would come from Venture investors or private equity if the company has sustainable earnings before interest, taxes, depreciation and amortization.
Over the course of the past eight years, Luke Powell has guided companies to utilize credit facilities that are often put in place for three to five years. With interest rates so low, the traditional markets have an appetite for higher yielding returns. As the investors that Luke Powell works with who seek these yields scour the market for transactions, they often do not think outside of the mainstream industries. Historically, the credit market has had an appetite for consumer loans which could consist of credit cards or personal loans, auto loans which could include leases or titles loans, Cell-Tower credit which are tied to the cash flows of cell calls utilizing the tower switch.
Luke Powell has more recently been working with qualified investors to think differently about which type of companies may also be attractive to finance with debt. Some of these esoteric industries that Luke Powell has worked with include Cyber Security companies that need financing, Water right financing whereby an operator of a private dam can utilize the cash flows driven by power generation, Music Royalties whereby owners of music rights can finance the cash flows of their royalty payments. These are some out of the box transactions that Luke Andrew Powell at Elan Alternative Group has worked over the past years.
If you have an interest to learn more about how these transactions are structured, please contact Luke Powell at Elan Alternative Group.