ATLalts

Andres Sandate
  • 5.0 (3)
  • Investing
  • Updated Weekly

ATLalts is a podcast for independent RIAs and accredited investors interested in learning about alternative investments, private markets, and alternative asset classes through interviews with alternative asset managers, asset owners, and industry practitioners. ATLalts explores venture capital, private equity, real estate, private credit, infrastructure, crypto and digital assets, hedge funds, secondaries, ag- and timberland, and more specialized alternative assets such as specialty finance and collectibles.

  1. Solving the Pre-IPO Liquidity Problem with Ian Leisegang, Co-Founder & Managing Partner of 3Spoke Capital

    May 12

    Solving the Pre-IPO Liquidity Problem with Ian Leisegang, Co-Founder & Managing Partner of 3Spoke Capital

    What do you tell a client sitting on a multi-million-dollar position in a pre-IPO company who needs liquidity today but doesn't want to sell and forfeit the upside? For most wealth advisors, private bankers, and RIAs, the honest answer has been "there isn't a great option." Ian Leisegang, CFA, Managing Partner of 3Spoke Capital, has spent the last 15 years building one with his fellow Managing Partner and Co-Founder Steve Gold. In this dual-release episode of Asset Backed and ATLalts, Ian walks through the structured secondaries strategy that 3Spoke pioneered — a hybrid solution that sits at the intersection of equity, debt, and alternatives. Rather than buying a shareholder's position outright, 3Spoke advances liquidity against the position and becomes a joint venture partner through the eventual exit, sharing in the upside while taking first-money-out downside protection. Ian covers: His path from South African CPA to Deutsche Bank derivatives to JP Morgan private banking — and the single $2M liquidity problem he couldn't solve for a client that led him and partner Steve to launch 3SpokeThe mechanics of a structured secondary: how a $100 position becomes a $30–$50 advance with no taxable event, no forfeited upside, and a partnership through to IPO or saleWhy "growth equity" — the crossover between late-stage venture and early private equity — is the most underserved liquidity zone in the marketThe use cases: common shareholders, option-holders facing expiration, LP fund interests, GP-led secondaries, and GP carried-interest advancesPortfolio names from 3Spoke's history, including DocuSign, Airbnb, Uber, Canva, Databricks, and eToroThe "three spokes" origin story: why no structured deal closes without aligning the capital provider, the seller, and the underlying company or GPInformation asymmetry on pre-IPO platforms and why retail buyers of common stock are routinely paying the wrong priceThe risk framework: targeting companies with $250M–$500M revenue, $1B+ enterprise values, 30–100% growth — and underwriting to 75–95% of investments returning at least 1x with 60–70% downside mitigationThe problem 3Spoke solves: shareholders, employees, founders, GPs, and LPs who need liquidity from a private position but don't want to forfeit the upside of a saleThe structure: an advance (typically 30–50% of position value) against the equity, paired with a minority share of the upside through to exit — not a loan, not a buyoutThe "growth equity" sweet spot: late-stage venture meets early private equity — companies with $250M–$500M in revenue and $1B+ enterprise valuesFive use-case categories: common shareholders, preferred shareholders, option-holders facing expiration, LP fund interests, and GP-led secondaries (including carry advances)The asset allocation case: structured secondaries offer asymmetric returns — equity-like upside with debt-like first-money-out protectionThe competitive edge: 15 years of structured deal experience, deep cap-table information, and partnership flexibility through to liquidity event If you advise clients with concentrated pre-IPO positions, sit on an investment committee evaluating secondaries managers, or run a GP that needs to deliver DPI to LPs without exiting a winner, this conversation is for you. Learn more about 3Spoke Capital by visiting their website at 3spokecapital.com. Listen, subscribe, and access manager profiles at EnduranceX.io

    57 min
  2. Specialty Finance Unveiled: Exploring untapped potential in this booming lending market to expand client exposure beyond direct lending strategies

    10/28/2025

    Specialty Finance Unveiled: Exploring untapped potential in this booming lending market to expand client exposure beyond direct lending strategies

    Launched in 2019, Coromandel Capital offers flexible, non-dilutive, growth-oriented asset-based lending solutions to businesses in specialty finance, fintech, and technology-enabled sectors that generate predictable, recurring revenue. As one of the few non-bank lenders specializing in small-ticket debt capital solutions, Coromandel Capital and similar entities—willing to provide financings below $20 million—are vital players for capital-intensive specialty lenders. The firm's financings typically range from $5 million to $50 million and have a three-year term. Co-Founder and Managing Partner Rob McGregor and I engaged in discussions on a variety of topics, including: - The role of debt financing in empowering startups and other early-stage and growing companies, particularly in relation to venture capital funding. - The risks associated with double pledging assets, including explanations thereof, especially in light of the recent collapse of First Brands. - The utilization of debt as a strategic tool for business growth. - The hidden costs related to venture debt. - The untapped potential inherent in the specialty finance sector. - The significance of diligent monitoring within lending relationships. - Strategies for growing as a private lender while safeguarding and maintaining capital. - Navigating the crowded and competitive private, non-bank lending industry to establish enduring relationships with borrowers and investors. Among the characteristics Coromandel seeks in ideal borrower partners are: - Balance-sheet intensive businesses (those originating or acquiring assets, tangible or intangible) that would otherwise finance these assets through equity. - Companies that have raised equity from Seed to Series B (or similar stages within their lifecycle), possess adequate capitalization to support operational expenses and maintain sufficient 'runway,' with a portion of this equity potentially serving as a contribution (also known as "haircut capital," "first loss capital," or "overcollateralization") for Coromandel's credit facility. - Subject matter experts and/or executives who are trailblazers with deep industry roots, a robust track record, and a validated business model. - Companies operating within sizable markets and differentiating themselves through cost-effective customer acquisition strategies, as well as firms that have identified an untapped or "greenfield" opportunity to address underserved or unserved markets. Key Takeaways for RIAs: RIAs have primarily used direct lending to gain private credit exposure, and this conversation delves into the opportunity offered by asset-based lending as a diversifying and complementary strategy for client portfolios.RIAs seeking to diversify in growing areas of private credit, such as asset-backed and asset-based strategies, can benefit from understanding how the fund manager underwrites, structures, and monitors their underlying credit exposures.Asset-based lending as a non-dilutive financing solution for growing specialty finance, tech-enabled lending businesses, and other growing firms in sectors generating predictable, recurring revenues, is an essential tool for strategic growth.Diligent monitoring and assessment of asset-backed loans are crucial in mitigating risks associated with double pledging, as evidenced by the recent First Brands collapse. The specialty finance sector harbors untapped potential that will only grow as more lending migrates away from banks, requiring RIAs to develop an in-depth understanding of risk management and strategic growth methodologies being employed by these alternative fund managers providing debt financing.Maintaining a competitive edge in the private lending landscape, even in emerging and exciting areas such as asset-based lending and asset-backed finance, requires building enduring relationships with borrowers while preserving capital for fund LPs.Venture debt, while a viable option for some startups, carries hidden costs that must be critically evaluated in the context of overall business strategy and capital structure. A thorough understanding of the unique dynamics of asset-based finance and asset-based lending strategies is essential for lenders, borrowers, and fund allocators as they navigate the complexities of this evolving market, where alternative investment and non-bank lending industry experts predict significant growth in the years ahead. Thank you for joining the ATLalts and Asset Backed podcast. To catch all the latest content of ATLalts or Asset Backed, our sister show, subscribe today and follow Endurance Strategies and Andres Sandate on LinkedIn or the Asset Backed YouTube Channel. This audio represents Endurance Strategies' intellectual property. Podcast Disclaimer This podcast is produced and hosted by Andres Sandate, and is the property of Endurance Strategies, LLC. Andres Sandate is a Financial Advisor with Gramercy Park Wealth Advisors, LLC, and a Registered Representative of GPWA, LLC, a member of FINRA/SIPC. Gramercy Park Wealth Advisors, LLC and GPWA, LLC are not responsible for the content of this podcast and do not offer investment, legal, or tax advice, nor do they recommend or endorse any securities, products, or strategies discussed. No part of this podcast may be published, reproduced, transmitted, or rebroadcast in any media or any form without the express written permission of Endurance Strategies, LLC. This podcast does not constitute an offer to sell or a solicitation of an offer to buy any fund interests, securities, or other financial instruments, nor does it constitute a solicitation on behalf of Endurance Strategies, LLC, its affiliates, or any third-party investment managers, their affiliates, products, or strategies. Any such offer or solicitation may only be made pursuant to the delivery of formal offering documents. Endurance Strategies, LLC has no obligation to update or revise any information contained herein. The company makes no representations or warranties as to the accuracy or completeness of the information, and this podcast should not be relied upon as the basis for investment decisions or for any other purpose. This material may be protected by copyright. © Endurance Strategies, LLC. All rights reserved.

    1h 20m
  3. Mount North Capital's Brian Seidensticker and Kiah Hochstetler on distressed real estate investing built on proprietary market insights and data-driven underwriting

    06/10/2025

    Mount North Capital's Brian Seidensticker and Kiah Hochstetler on distressed real estate investing built on proprietary market insights and data-driven underwriting

    Brian Seidensticker and Kiah Hochstetler discuss how they built Mount North Capital, a Last Best Partners portfolio company, into a data-driven, technology-enabled real estate investing platform that enables passive real estate investors to access the tax sale investment marketplace. The firm has strategically positioned itself to capture opportunities during economic slowdowns or downturns, as the tax sale investment market often presents increased opportunities during such periods. • Mount North Capital aims to offer asset-backed investment opportunities in the distressed property space to passive investors, all supported by data, technology, and a team of experienced real estate professionals. • Sister company Tax Sale Resources provides users with centralized access to tax sale data, designed to help these real estate investors save time and money while navigating this complex landscape. • Many of these users are real estate investors, and one of their most significant challenges in pursuing more deals is access to capital. • Seidensticker and Hochstetler explain Mount North Capital's capital partnership program and how their two-sided solution, which aids both real estate operators and passive real estate investors seeking asset-backed investment opportunities, came together in forming Mount North Capital.

    1h 4m
  4. Unlocking Value in Phoenix's Multifamily Sector: A Discussion with WhiteHaven's Ben Leybovich

    04/08/2025

    Unlocking Value in Phoenix's Multifamily Sector: A Discussion with WhiteHaven's Ben Leybovich

    The podcast episode serves as an in-depth exploration of the multifamily investment landscape in Phoenix, featuring insights from Ben Leybovich, co-founder of WhiteHaven. The discussion commences with a contextual overview of Phoenix as a compelling MSA for multifamily investments, emphasizing the city's exponential population growth and the resultant demand for housing. Leybovich details how demographic trends and economic policies converge to create a fertile ground for multifamily real estate investment. He emphasizes the importance of understanding the macroeconomic backdrop that influences real estate dynamics, elucidating factors such as job growth, migration patterns, and construction costs that collectively shape investment opportunities. As the conversation progresses, the episode delves into WhiteHaven's strategic positioning within this vibrant market. Leybovich shares the firm's approach to identifying undervalued assets and leveraging construction expertise to enhance property value through strategic renovations. He highlights the critical role of thorough due diligence in navigating the complexities of the multifamily sector, especially in a market where competition for quality assets is intensifying. By showcasing real-time examples of WhiteHaven’s investment strategies, Leybovich provides listeners with practical insights into the operational challenges and triumphs inherent in multifamily investments. The episode culminates in a forward-looking perspective, encouraging listeners to consider the long-term potential of investing in Phoenix's multifamily market, backed by WhiteHaven's expertise and local market knowledge. Takeaways: The multifamily investment landscape in Phoenix is particularly appealing due to the confluence of robust population growth and insufficient housing supply, creating a favorable environment for rental price appreciation. Ben Leybovich emphasizes that the unique macroeconomic factors in Phoenix, including a stable regulatory framework, contribute significantly to its attractiveness as a multifamily investment destination. Whitehaven's investment strategy involves identifying opportunities in both new construction and value-add multifamily properties, particularly focusing on acquiring assets below replacement cost. The current economic climate presents a strategic opportunity for savvy investors, as institutional capital remains on the sidelines, allowing smaller firms like Whitehaven to capitalize on discounted properties. With the anticipated population growth in Phoenix, projected to rise by approximately 1.2 million by 2030, demand for multifamily housing is expected to surge, emphasizing the necessity for new developments. Ben's insights reveal that the construction industry is currently experiencing significant challenges, including escalating costs and labor shortages, which may limit future supply and further enhance rental growth potential. Links referenced in this episode: www.atlalts.comwww.Whitehaven.comwww.gpwealthadvisors.com Companies mentioned in this episode: Whitehaven ATLalts Gramercy Park Wealth Advisors, LLC

    1h 3m
  5. Navigating Uncertainty and Allocating Strategically in Volatile Markets: The Importance of Private Credit in Portfolio Optimization

    04/07/2025

    Navigating Uncertainty and Allocating Strategically in Volatile Markets: The Importance of Private Credit in Portfolio Optimization

    This timely ATLalts podcast episode highlights the multifaceted landscape of private credit and alternative investment solutions, with a particular emphasis on the strategic considerations necessary for optimizing portfolio allocations in an increasingly volatile market environment. Our guest, Brook Scardina, Managing Partner - Capital Markets & Investments at Oak Real Estate Partners, brings a wealth of experience from his extensive tenure in institutional investing, where he adeptly navigated the complexities of asset management for noteable foundations and endowments such as UNC Management Company, UPS Pension Plan, and Georgia Tech Foundation. In a market characterized by recent stock market volatility, daily headlines of tariffs, uncertain fed policy, and fluctuating economic indicators, Scardina argues for the critical importance of incorporating alternative investments and private credit into investment portfolios as a means of enhancing diversification, mitigating risk, and earning attractive risk-adjusted yields, particularly in light of the diminishing returns expected from traditional equity markets. Furthermore, he articulates the structural advantages inherent in certain areas of the private credit space, such as reduced competition and the ability to capitalize on niche lending opportunities in short-duration real estate bridge lending, that larger institutions and banks overlook or can't pursue, thus providing a compelling rationale for investors to re-evaluate their asset allocation strategies. This discussion not only seeks to educate and inform but also to engage listeners in a deeper understanding of how nuanced approaches to private credit can serve as a cornerstone for achieving robust financial outcomes in a fluctuating and rapidly evolving economic landscape. The conversation delves into the intricate dynamics of private credit as a pivotal component of alternative investment strategies, and how investors can benefit from the different areas of this rapidly growing market. He emphasizes the necessity for investors to reassess their portfolios, particularly in light of the potential for a more protracted low expected return environment from equities and fixed income, advocating for an incremental allocation to private credit as a means of enhancing risk-adjusted returns. Scardina’s extensive background in managing large-scale investment portfolios for prestigious institutions at endowments, foundations, and corporate pension plans, equips him with the insights necessary to help educate listeners on the growing field and inherent complexities of private credit. He explores the various iterations within the private credit sector, such as subordinated debt and mezzanine financing, highlighting their distinct risk-return profiles. The episode elaborates on OREP's strategic approach to risk mitigation, underscoring the importance of customized financing solutions that align with the specific objectives of institutional investors. Moreover, Scardina’s case studies during the episode serve as practical illustrations of how OREP effectively addresses the financing needs of borrowers within the real estate private credit space where OREP competes, particularly in sectors where traditional lenders are typically hesitant to engage. This comprehensive examination of the real estate private credit landscape not only highlights the unique opportunities available to smaller, specialized lenders with institutional investor-grade capabilities but also reinforces the critical role these solutions can play in pursuing overall portfolio efficiency. Takeaways: The fundamental role of private credit as an optimal alternative investment, particularly in mitigating portfolio risk and enhancing diversification amidst prevailing market volatility. The discussion highlighted Oak Real Estate Partners' strategic approach to structuring highly customized debt solutions in real estate bridge lending, which are designed to align with the investment objectives of institutional and private wealth clients while maintaining a focus on credit risk mitigation. A salient point made was the increasing interest in private credit allocations to smaller, specialized, and niche sponsors among institutional investors, driven by the current restrictive lending environment at banking organizations, the larger firms pursuing similar strategies, and the scarcity of capital available for smaller lending opportunities due to the size of publicly traded alternative asset managers. Scardina emphasized the necessity of employing a rigorous underwriting process at OREP that mirrors institutional and securitization standards, ensuring the preservation of capital while generating competitive returns for investors. The episode underscored the significance of effective communication and education in bridging the gap between institutional and high-net-worth investors regarding alternative investment strategies. Scardina's insights on the evolving landscape of capital markets reinforced the importance of niche private credit managers in capturing unique opportunities that larger institutions may overlook or are unable to pursue due to structural disadvantages. Companies mentioned in this episode: Oak Real Estate Partners Georgia Tech Foundation UNC Management Company UPS

    56 min
  6. Unlocking Venture Growth Equity in AI: Al Tarar and Rizwan Muhammad of Quartus Capital Partners

    04/04/2025

    Unlocking Venture Growth Equity in AI: Al Tarar and Rizwan Muhammad of Quartus Capital Partners

    This episode of ATLalts features an AI focused conversation with the founders of venture growth equity firm Quartus Capital Partners, co-led by Founder, Managing Partner, and CIO, Al Tarar and Partner, Rizwan Muhammad. Quartus invests in growth-stage AI and technology ventures and aims to transform them into market leaders by applying extensive growth and performance improvement expertise. A special thanks to Mark Dziuba, Managing Director—Distribution, Pinnacle Capital Group for introducing me to Quartus Capital Partners. The firm, which has garnered recognition as a Private Equity Wire US Emerging Manager Award Winner in 2024, demonstrates an unwavering commitment to harnessing AI-driven solutions aimed at addressing some of society's most pressing challenges across sectors such as healthcare, education, and cybersecurity. Our conversation delves into the intricacies of AI's evolution from rudimentary pattern recognition to the contemporary realm of generative AI and its multifaceted applications across diverse sectors such as finance, logistics, and supply chain. We examine how the firm's investment philosophy, rooted in over three decades of collective expertise, prioritizes growth equity strategies that are meticulously designed to yield attractive risk-adjusted returns, as substantiated by extensive research from Cambridge Associates. As we engage with the nuances of AI’s transformative potential, we underscore the imperative of not merely seeking out innovative technologies, but rather discerning viable business solutions that substantiate sustainable growth and profitability in an ever-evolving AI market landscape often dominated by hype, soaring private markets valuations, and buzzy media headlines. As we dissect the operational ethos of Quartus Capital Partners, it becomes clear that their investment framework is not merely about capital allocation and asset gathering, or B2C consumer AI bets, but is deeply rooted in a philosophy of fostering B2B innovation employing AI and AI-based software while ensuring sustainable growth in core sectors of the economy. The episode culminates in a forward-looking perspective on the future of investment in AI, as the founders articulate their vision for leveraging technology to catalyze significant societal advancements, thereby reinforcing the notion that the true value of investment lies in its potential to effectuate meaningful change. Takeaways: Quartus Capital Partners, under the leadership of Al Tarar and Rizwan Muhammad, a team of AI pioneers, technologists, and seasoned operators, explores venture growth equity investing in a rapidly evolving AI landscape often dominated by B2C and consumer AI-related stories and strategies.Vertical applications of AI across education, healthcare, finance, security, logistics, and supply chain are often overlooked yet could have a profound impact on these industries and offer unprecedented opportunities for growth equity investors. The firm's extensive experience, spanning over three decades, empowers them to navigate the complex landscape of venture growth equity where they are investing in Series B, C, and D stage companies who required additional capital to grow.The partners have extensive growth and performance improvement expertise gained from working with some of the world’s largest businesses and believe this is a distinguishing advantage of their platform.With a focus on mid-stage technology companies, Quartus Capital Partners seeks to invest in businesses that have established product-market fit and sustainable revenues.As the AI domain continues to evolve, Quartus Capital Partners aims to make a global impact by supporting AI and technology companies that address real-world challenges. Links referenced in this episode: quartuscap.comCambridge Associates Research on Growth EquityGoldman Sachs Artificial Intelligence Research and Thought Leadership The information provided herein is for general informational purposes only and does not constitute financial, investment, legal, or other professional advice. It should not be considered a recommendation to purchase or sell any financial instruments or adopt any investment strategies. Past performance is not indicative of future results; all investments carry inherent risks, including the potential loss of principal. Before making any financial decisions, you should consult with a qualified professional who can assess your individual circumstances and objectives. We disclaim any liability for actions taken based on the information provided.​ Andres Sandate is the creator and host of ATLalts and is a financial advisor and Head of Alternative Investments at Gramercy Park Wealth Advisors, LLC. Gramercy Park Wealth Advisors, LLC and GPWA, LLC, Member FINRA/SIPC, are not responsible for this content and the views of the host and the guests are their views only.

    59 min

  7. 02/03/2025

    DelCam Capital, LLC - Private Equity Redefined: Transparent Investing in American Manufacturing

    On this episode of the ATLalts podcast we explore the burgeoning opportunities in middle market private equity, particularly within the manufacturing sector in the United States, as articulated by the founders of Del Cam Capital. Joining us on the episode are Richard Gibble, Managing Director and Partner, Stephen 'Steve' Trotta, Managing Partner, and Stuart Chanin, Managing Director and Partner. I was joined this episode by the CEO and Founding Advisor of Gramercy Park Wealth Advisors, LLC, Brian Cote. Gramercy Park Wealth Advisors is where I recently affiliated and am building the Atlanta, GA market as a Financial Advisor and Head of Alternative Investments. Not included in the episode but a member of the Del Cam Capital team is Zachari Triner, Partner. As Head of Alternative Investments at Gramercy Park Wealth Advisors, I meet with alternative investments managers throughout the course of my work to learn more about their strategies and approach to private markets. Brian Cote and I met the Del Cam team in 2024 and we continue to explore opportunities in middle market private equity. The middle market represented 60% of deal flow in 2024 and the U.S. middle market accounts for one-third of the nation's economic output. 99% of middle-market companies are privately held and much like our previous episode with Fruition Capital, bears understanding if you are an investor seeking alternative investment opportunities in equity and credit. It is our view at Gramercy Park Wealth Advisors that private equity focused in the middle market could be particularly well-positioned in a higher for longer interest rate environment and given the Trump administration's domestic policy and fiscal priorities. On the episode with Del Cam Capital we delve into the concept of a "golden era" for manufacturing, driven by multiple macroeconomic factors and the strategic insights of our guests, Steve, Rich, and Stu. Their collective expertise reveals a transformative approach to private equity investment, emphasizing the importance of operational efficiencies, technological advancements, and the nurturing of enduring relationships within niche markets. Moreover, we examine Del Cam's distinctive methodologies for generating value post-acquisition, leveraging frameworks such as the Entrepreneurial Operating System (EOS) to foster accountability and drive employee engagement. Join us as we unpack these compelling narratives and gain invaluable perspectives on the future landscape of middle market private equity and its role in revitalizing American manufacturing. The Discussion Covered the Following Topics Introduction of the Team and Building Del Cam as a new Private Equity Platform Focused on ManufacturingThe Case for U.S. Manufacturing: A Golden EraMacro Tailwinds for U.S. Manufacturing (particularly relevant with tariffs being enacted in February 2025 with Canada and Mexico)Del Cam's Investment Processes including deal sourcing, due diligence, and post-acquisition value creationPortfolio Highlights of The Shortening Shuttle and Space Age Electronics Links referenced in this episode: delcamcapital.comgpwealthadvisors.comatlalts.comEOS Worldwide Companies mentioned in this episode: Gramercy Park Wealth Advisors, LLC Del Cam Capital, LLC Fidelity Investments Space Age Electronics Shortening Shuttle EOS Worldwide Learn more about DelCam Capital, LLC by contacting them: Del Cam Capital, LLC 101 Arch Street Boston, MA 02110 www.DelCamCapital.com Disclaimer The information provided in the ATLalts podcast and newsletter is for general informational purposes only and should not be construed as financial, investment, tax, or legal advice. This information provided should not be construed as a solicitation or offer to buy or sell any securities or any other financial instruments, financial products, or financial services. The views and opinions expressed in this podcast and newsletter are solely those of the speakers and do not necessarily reflect the official policy or position of ATLalts or its affiliates. All information or data provided is not warranted as to timeliness, completeness or accuracy and is subject to change without notice. Past performance may not be an indication of future results. Listeners should consult with a qualified professional advisor before making any investment decisions based on the information presented. Gramercy Park Wealth Advisors, LLC and GPWA, LLC, Member FINRA/SIPC are not responsible for any errors or omissions in the content of this podcast and newsletter. Securities are offered through GPWA, LLC / Member: FINRA & SIPC

    1h 13m

  8. 01/08/2025

    Unlocking the Secrets of Acquisition Entrepreneurship: A Deep Dive with Jason Ehrlich

    The podcast features a deep dive into the world of small business acquisitions, highlighting the significant opportunity presented by the ongoing transfer of ownership from retiring Baby Boomers. What is acquisition entrepreneurship? It is the practice of searching for and buying established, profitable small businesses - usually from a retiring owner. Fruition Capital invests in these businesses. I invited Jason Ehrlich, Managing Partner of Fruition Capital on ATLalts to discuss why he believes investing in the acquisition of small businesses can allow investors to take advantage of what he believes are four key factors: Generational transfer of US small businesses owned by Baby Boomers is underway. Greater then 3 million profitable businesses owned by 65+ year-old owners will change hands in the next 5-10 yearsAttractive acquisition prices of 3x-5x avg. acquisition multiples (of EBITDA) for target businesses.Probability of failure is low as only 2.1% of SBA 7a Business Acquisition Loans defaulted in 2023The Chance of attractive performance is high as 75% of sesarch entrepreneur investors achieved an IRR of 20% according to one study. Jason Ehrlich, Managing Partner of Fruition Capital, discusses how his firm focuses on investing in B2B companies with stable earnings and a repeat customer base, which he refers to as "enduring profitability." The conversation emphasizes the attractive valuations available in this space, often at 3x-5x multiples of EBITDA, and the low failure rates associated with these businesses, particularly in the context of SBA 7a loans. Ehrlich also elaborates on the unique structure of Fruition Capital, which differentiates itself by partnering closely with entrepreneurs while providing significant capital and operational support. As the episode unfolds, listeners gain insights into the strategies and criteria that make Fruition Capital a leader in this niche market, ultimately aiming to preserve and grow local businesses in communities across the U.S. The impending retirement of Baby Boomer small business owners creates a unique landscape for investment, one that Fruition Capital is keen to navigate. Jason Ehrlich, managing partner of Fruition Capital, discusses the firm’s distinctive approach to acquiring established B2B companies that showcase not only a history of profitability but also a strong customer base. The podcast sheds light on the economic opportunities that arise from the generational shift in business ownership, particularly in light of the favorable valuations available—typically three to five times EBITDA for these enterprises. With a low default rate of approximately 2.1% on SBA 7(a) loans, the primary financing method for such acquisitions, investors are presented with a compelling case for entering this market. Ehrlich elaborates on Fruition Capital's stringent investment criteria, underscoring the firm’s commitment to stability and enduring profitability. By intentionally avoiding tech-heavy or cyclically volatile industries, Fruition ensures that its investments are grounded in businesses that have demonstrated resilience over time. The conversation also touches on the structural elements of deals, such as seller notes and equity rollovers, which serve to align the interests of the sellers and the new owners, thus facilitating a seamless transition of leadership while preserving the legacy of these local businesses. This model not only safeguards the interests of investors but also places the entrepreneurs in a position to succeed as they take the reins of these established firms. Furthermore, the episode highlights the broader societal impact of Fruition Capital's investment strategy. By empowering a new generation of entrepreneurs to take over small businesses, Fruition aims to keep jobs within local communities and foster economic stability. This commitment to community revitalization aligns perfectly with the firm’s investment philosophy, showcasing that financial returns and social responsibility can go hand in hand. As listeners delve into this discussion, they gain a deeper understanding of how strategic investments can not only yield strong financial outcomes but also contribute to the health and vibrancy of local economies. Takeaways: The transfer of small business ownership from Baby Boomers is creating unique investment opportunities. Fruition Capital focuses exclusively on B2B companies with established customer bases for stability. Investors can benefit from attractive valuations, often at 3x-5x EBITDA multiples. The default rate for SBA loans used in acquisitions is impressively low at 2.1%. Jason Ehrlich emphasizes the importance of investing in enduringly profitable businesses with longevity. The podcast highlights the need for experienced entrepreneurs to guide successful acquisitions. Companies mentioned in this episode: Fruition Capital Gramercy Park Wealth Advisors, LLC GPWA, LLC, Member FINRA/SIPC

    1h 3m
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Ratings & Reviews

5
out of 5
3 Ratings

About

ATLalts is a podcast for independent RIAs and accredited investors interested in learning about alternative investments, private markets, and alternative asset classes through interviews with alternative asset managers, asset owners, and industry practitioners. ATLalts explores venture capital, private equity, real estate, private credit, infrastructure, crypto and digital assets, hedge funds, secondaries, ag- and timberland, and more specialized alternative assets such as specialty finance and collectibles.

Information

  • Creator
    Andres Sandate
  • Years Active
    2021 - 2026
  • Episodes
    47
  • Rating
    Clean
  • Copyright
    © Copyright 2026 Andres Sandate
  • Show Website
    ATLalts