Pitch deck
Capital Engine® Powering Online Capital Markets
Overview
Capital Engine® is a global FinTech and investment bank operating at the intersection of private markets, investment banking, and technology-driven innovation.
The firm leverages its expertise to offer a comprehensive suite of services, including a network of retail-focused investment platforms, an enterprise advisory arm, and broker-dealer operations through its acquisition of SEC registered broker dealer Mallory Capital Group ($10B deals processed).
Key Components of Capital Engine®
Capital Engine® provides technology and infrastructure for investment platforms that focus on democratizing access to private market investments. These platforms are designed to streamline capital formation for issuers and simplify the investment process for retail and institutional investors.
- Accessible Investments: Broadening investor access to private markets, such as real estate, startups, and alternative assets.
- User-Friendly Experience: Tools to enhance transparency and efficiency in fundraising and investing.
- Compliance and Security: Integrated solutions to ensure adherence to regulatory standards and protect investor data.
The enterprise advisory division delivers strategic guidance to businesses seeking to navigate capital markets and raise funds. This includes assistance with structuring deals, preparing for fundraising, and connecting issuers with potential investors.
- Capital Formation Strategy: Tailored solutions for equity and debt financing.
- M&A Advisory: Guidance on mergers, acquisitions, and strategic partnerships.
- Sector Expertise: Deep knowledge of various industries, particularly commercial real estate and technology-driven businesses.
3. Broker-Dealer Operations
Through its acquisition of Mallory Capital Group, Capital Engine® provides broker-dealer services, enhancing its capabilities in facilitating private placements, securities offerings, and other financial transactions.
- Deal Origination: Sourcing and structuring compelling investment opportunities.
- Regulated Transactions: Seamless execution of compliant capital market activities.
- Investor Network: Leveraging a robust network of high-net-worth individuals, family offices, and institutional investors.
Mission and Vision
Capital Engine® is committed to transforming the private market investing landscape by integrating advanced technology, financial expertise, and a customer-centric approach. The firm envisions a future where private investments are more accessible, transparent, and efficient for all stakeholders.
Competitive Advantage
- Proven Leadership: Backed by seasoned professionals with decades of experience in finance, technology, and capital markets.
- Innovative Technology: A proprietary platform that simplifies and enhances the investment lifecycle.
- Global Reach: Connecting issuers and investors across geographies to unlock opportunities in private markets.
Capital Engine® continues to bridge the gap between traditional finance and modern technology, driving growth for issuers and investors alike.
Proven and Profitable Business With Significant Traction
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).
- $750M 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.
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.
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 well-established private placement agent that raises institutional and private capital for investment managers across a wide range of alternative strategies.
- Capital Engine® formally received FINRA approval for acquisition of Mallory Capital Group, an SEC-registered broker-dealer - full details in the press release
- 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 2026 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.
