Capital Engine® Powering Online Capital Markets
Overview
Capital Engine® is a tech-enabled company, that provides customized private capital, secondary market infrastructure and investor management solutions for investment banks, regulated broker-dealers, investment platforms, law firms, and real estate funds.
Capital Engine® is on a mission to transform the $2.5 trillion exempt private capital markets infrastructure and subsequent secondaries trading landscape, creating an organized market for private capital, digital assets and other exempt securities.
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).
- $450M 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.
Company Status
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® entered into a definitive agreement to acquire Mallory Capital Group, a FINRA-registered broker-dealer
- 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 2024 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
Company Info
Capital Engine® Powering Online Capital Markets
About Capital Engine®
Capital Engine® Inc. is a Delaware corporation founded in 2018 currently operating in the US, Canada, UK, Europe, and Africa.The Team
Capital Engine® has built an exceptional team (ex Wall St veterans) with a proven track record for success including a strong advisory board with broad experience, expertise and resources in global financial services, commercial real estate, alternative investments, fintech, blockchain, marketing and securities.
Conrad Weymann | Chairman | Mallory Capital Group
Conrad founded Mallory Capital Group (MCG) in December 1995 after two years as a partner at funds placement firm C.P. Eaton & Associates (now Eaton Partners). Besides having overall management responsibility for MCG, Conrad is active in origination, project management and distribution.
Over his placement career he has managed the placement of in excess of $10 billion of private equity and debt securities for a variety of private equity, private real estate and hedge fund partnerships over a wide range of investment strategies.
Conrad graduated with honors from the University of Notre Dame with a BS in Civil Engineering and a BA in General Studies. He studied at The George Washington University Graduate School of Business where he completed all but 6 hours of his course requirements towards an MBA, with a concentration in finance, before relocating to Connecticut. Conrad holds Series 7, 24 and 63 licenses with FINRA.
Bryan Smith | CEO
Bryan is the founder of Capital Engine® and Real Estate / FinTech professional with more than 15 years experience at an executive management level including CEO of a public REIT in South Africa.
Bryan has been involved in a number of FinTech startups including Director of Capital Markets at RealConnex, CEO of RealtyWealth.com and disruptive charitable fundraiser Pledge-a-Portion.
Bryan is the founder of Pledge a Portion, a registered charity and fundraising initiative that creates opportunities for businesses and individuals to give to charities on an on going basis. Pledge a Portion was started in 2009 as a registered Non Profit and Public Benefit Organization in South Africa and the US in 2013.
Bryan's has a proven ability to negotiate with financial institutions, with over $300 million of capital fundraising (debt and equity) raised through banks and financial institutions for commercial real estate and development projects globally.
Bryan is an accomplished leader with an MBA from Wales University specializing in new venture creation. Bryan holds Series 22 licenses with FINRA.
Will Green | COO
Will is a Senior Business Executive with over 23 years knowledge, experience and networks within the high growth Technology Industries in Africa, UK and Singapore.
Will has built profitable businesses from start-up to multi-million dollars in annual turnover rapidly and sustainably and developed successful business models and go-to-market strategies to help Start-ups, Scale-ups and Corporates.
A born entrepreneur, in the early 2010’s Will helped Yahoo! Inc and other US/EU companies establish a commercial foothold in Africa. Yahoo launched an African property, one of the first new property in their global growth markets division at the time.
Will is a leader and innovator in high growth Markets and experienced with working with Multi-national Global businesses such as Unilever, P&G, Yahoo!, Sky, eBay and Manchester United.
Will was the Program Director for Grindstone, VC Knife Capital’s structured entrepreneurship development program that assists high-growth innovation-driven companies to get the fundamental building blocks in place to scale quickly and become sustainable and fundable.
During his tenure Will reviewed over 1500+ applications and selected 64 and directly worked with 150+ founders which resulted in $9 million external funding being raised, $18 million revenue growth, 146 new jobs created and 72% CAGR. This was achieved over a 3-year period during Covid and within a developing market tech ecosystem.
Irwin Stein | General Counsel
Irwin is a very experienced securities attorney with more than 40 years advising companies that are raising capital from investors and brings judgment honed over a long career, to help them to efficiently navigate the capital raising process.
Irwin has helped to prepare more than 150 public and private securities offerings across various industries.
Mike Ireland | Director Mallory Capital Group
Mike is a Managing Director at MCG and focuses on origination and distribution at MCG. He has over 17 years of experience in alternative investments as a fiduciary, advisor and intermediary. Over the course of his career, Mike has arranged for subscriptions of over $1 billion in capital for funds and direct transactions.
Prior to joining MCG, Mike was Partner and Co-Head of North American Sales at First Avenue, a global fund placement agent. As a senior distribution professional there, Mike maintained relationships with institutional investors across North America; covering asset classes ranging from Private Equity, Real Assets and Private Credit.
Prior to First Avenue, Mike had a diverse career in fundraising and investor relations. He served as Head of Investor Relations for Blum Capital IV, a $1.2 billion private equity fund. Mike graduated with BS in Finance from Florida State University. He also spent 6 years in the US Navy's Nuclear Power Program as an Engineering Laboratory Technician. He holds Series 7 and 63 licenses.
Marty Jensen | Head of Strategic Partnerships (America's)
Marty has over 35 years of executive leadership in comprehensive wealth management, practice management, sales, distribution and technology platforms in the financial services industry (Morgan Stanley Smith Barney, Wells Fargo Advisors, ING Advisors, PRIME Advisory Network, United Management Group).
His former clients have included Broker-Dealers, RIA’s, Insurance, Bank and Trust companies, Financial Intermediaries, Family Offices, Non-Profit Foundations, Legacy and Estate Planning clients-advisors-enterprises, in both domestic and international markets.
Christopher Thompson | Business Advisor
An educator, entrepreneur and investment professional with forty years of experience, Chris is passionate about disruptive innovation and evangelizes for early stage technology companies that deliver outstanding returns to institutional investors while generating measurable social impact. His current areas of focus include AI/AR, blockchain, cognitive computing, cybersecurity, fintech, machine learning, energy / thermal management technologies and SaaS.
Chris spent over 30 years serving and leading in Fortune 50 companies such as IBM, Credit Suisse, Morgan Stanley and Fidelity Investments. He has also served as the National Development Director for a $60 million humanitarian relief organization, as well as a partner with multiple startups in the institutional investment management industry and as an entrepreneurship instructor for high school students in the Silicon Valley.
He has an Bachelor’s degree in Economics and the Russian Language from the University of Michigan and a Master’s degree in History from Wesleyan University. He also earned the Chartered Financial Consultant (ChFC) and Chartered Life Underwriter (CLU) designations from the American College of Financial Services.
Andrew Schrieber | Capital Engine UK
Andrew has over 30 years experience as a serial wealth management entrepreneur. Specialising in introductions and capital raising for unique, more unusual and potentially lucrative alternative opportunities for active investors.Andrew is the owner of Schreiber Associates International (SAINT) and Capital Engine® UK partner, a financial advisory and wealth management firm focusing on alternative investments and a core portfolio of financial products.
SAINT is the leading European Exclusive Distributor for a number of select Alternative Opportunities - giving clients access to key alternative investment opportunities that benefit from thorough due diligence, maximum security and guaranteed returns with clearly defined exit strategies.
Duncan MacRobert | Strategic Advisor
Duncan has worked in various investment banking advisory roles in the Corporate Finance Divisions of Standard Bank and Cadiz. During this period, he advised various listed and unlisted clients on transactions involving mergers and acquisitions, valuations, black economic empowerment, private equity investments, stock exchange-related matters and general corporate finance. In 2009 he established a corporate advisory and proprietary investment company called Richmond Capital.
Duncan serves as a non-executive director on a number of Board of Directors and also on the Investment Committee of private equity and property funds. He is a member of the South African Institute of Chartered Accountants.
Anthony guides, assists and resources entrepreneurs and inventors through the realization of their inventions and innovations - through concept development, productization, exponential commercialization, internationalization and liquidity.
As a mentor, advisor, fractional or co-founding executive, his expertise is in developing transformative and exponential Products, Projects and Businesses to forge new paradigms, resulting in market traction, value amplification and/or effective competitive profiles.
Anthony has raised over $36 million in venture financing; created, built and sold three start-ups, including Moviso which generated over $1.5 billion in revenue. He spearheaded the creation of the multi-billion dollar global ringtone market (2000-2005) which established content distribution over mobile networks.
Anthony pioneered downloadable music distribution (1995-1998) in partnership with AT&T/Bell Labs and led an evolutionary IP-telecom project at Qualcomm Labs (2010-2011). He then headed the developer ecosystem group for Nokia in India, the Middle East and Africa (2011-2012), the company's largest market region by volume.
Investment Highlights
Capital Engine® Powering Online Capital Markets
Investment Opportunity
Capital Engine® is seeking up to $5M to scale / accelerate revenue growth in 2024 / 25 with focus on strategic partners, business / tech development, broker dealer expansion, development of sales / marketing capabilities, recruit key staff to ramp up market share, setup of SEC-licensed Alternative Trading System (ATS) and secondary trading platform for private capital markets in the US.
Capital Engine® has multiple, synergistically aligned tech-enabled capital solutions verticals. Our proprietary software solutions enable companies to efficiently execute online and offline capital raises and provides investor management solutions for investment platforms, real estate funds, private companies, investment banks, broker-dealers, and law firms.
Our technology solutions also power our online capital raising Marketplace, tech enabled private placement agent and broker dealer, and our upcoming commercial real estate marketplace and secondaries trading platform USA REIT.
Growth Capital
Offering Terms
- $2 million (post-money valuation $17 million)
- 20% discount on $3 share price*
- Min. Invest: $24,000 (10,000 shares at $2.40 / share)
- Capital Engine’s Investment Marketplace and software solutions have helped raise $450 million
- Actively raising $250 million for clients
- Deal pipeline: $650 million+ potential raises
- Funding will accelerate and scale revenue growth focusing on strategic partnerships, expanding broker-dealer, sales and marketing, onboarding key staff, and setup of secondary trading platform
- Shares projected to be liquid by 2026, 20x - 70x return
* Discount valid for for first 30 confirmed investors
- Min. Investment: $24,000 - 20% share price discount i.e. 10,000 shares at $2.40 / share
- Average Investment: $100,800 - 30% share price discount i.e. 48,000 shares at $2.10 / share
- Major Investment: $250,200 - 40% share price discount i.e. 139,000 shares at $1.80 / share
Capital Engine® Perpetual Financing Strategy
* 20% share price discount for first 30 investors
Monetization
- Private label model (customized white-label solutions)
- Strategic partnerships (revenue share typically 50/50)
- Online investment marketplace - Reg D, CF and A (success based fee 5% – 10%)
Our list of over 50 clients includes leading real estate funds (some with over >$500M in assets), investment platforms, regulated broker-dealers, law firms, funds, etc.
Liquidity Strategy
Capital Engine® believes the optimal value creation strategy for our investors will be to target an accelerated path to an exit and liquidity event in 2025/2026. Potential acquirers include:
- FinTech Consolidators
- Investment Bank
- Private Placement Agent/Broker Dealer
- Private Equity Firm
- One of our White Label customers or Strategic Partners
Our estimated sale price is $300M to $400M.
Alternative Liquidity Options
- Capital Engine’s investors could sell shares on our secondary trading platform
- Dividend payments to shareholders from substantial free cash flow
- Dividend recapitalization with investment from deep-pocketed / patient capital partner
- IPO on NASDAQ / NYSE
Financial Snapshot
Financial Highlights
Pitch Deck Viewer
Pitch Deck Viewer
Documents
Investment Location
Opportunity
Capital Engine® Powering Online Capital Markets
Capital Engine® has multiple, synergistically aligned tech-enabled capital solutions verticals. Our proprietary software solutions enable companies to efficiently execute online and offline capital raises and provides investor management solutions for investment platforms, real estate funds, private companies, investment banks, broker-dealers, and law firms.
There is no established secondaries trading platform for exempt private securities market to match the public market infrastructure of the NYSE or Nasdaq
Investor Access
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.Lack of Transparency
Regulatory disclosure requirements imposed on public companies, as well as the scrutiny of outside investors, provides a fairly high level of transparency not available to private markets.
Limited Liquidity
Liquidity is limited for private companies and alternative assets. Where liquidity does exist, the experience is inefficient.
The Solution
Fully Integrated and Compliant End-to-End Online Software Solution.
Solution Benefits
Capital Engine® is transforming the $2.5 trillion exempt private securities infrastructure and subsequent secondaries trading, creating an organized and liquid market for private capital, digital assets and other exempt securities.
Regulatory & Compliance
- Securities laws
- Privacy & security
- E-Commerce
- Investor protection
- Blockchain systems & digital securities
Automation of Manual Work
- Turnkey transaction system
- Deal setup
- Investor onboarding
- Investor relations
- Marketing automation
Integrated Private Markets Structure
- Eliminate inefficiencies in private markets
- Supports customer-specific needs
- Manage / sync with key business technologies
- Clearing, custody and secondaries market infrastructure
Security & Privacy
- Transactions
- Communications
- Investor servicing & reporting
Target Market Sectors
These sectors have lagged in terms adopting and advancing capital raising innovations and technologies.
Capital raising in these sectors is inefficient, time consuming, and expensive, hence the enormous opportunity to disintermediate these markets.
