Lease rate in area was high, and commercial real estate values increased 33% during previous two years. Landlord wanted to lease commercial property at market rates or slightly higher due to desirable location. Company felt market was too high for this available space, but wanted business to remain in area during expansion.
Cultivated good business relationship with Asset Manager and commenced negotiations; conducted market research on commercial property rates in area for previous ten years and proved unreasonable inflation. Proposed 15-year lease rate with options for additional five years in order to ensure lower rate.
Successfully negotiated 15-year, competitive lease, saving business $235,000.

Deal structuring mechanism required updating in order to increase potential returns on investments for company's investment funds. Portfolio companies did not want to complicate issuance of stock and did not like possible dilution implication of stock from investment. Company desired to have conversion price based on closing prices instead of lowest three inter-day prices with look-back period.
Met with investment committee and explained that deal structuring mechanism would provide higher profitability. Secured approval; negotiated with portfolio company by proving risk-to-reward was justified; clarified that if company management was confident in use of proceeds for growth initiative, stock price would increase and dilution would not be an issue.
New pricing mechanism added minimum of 25% ROI.

Lender provision default rendered shareholder risk of $3 million. Investor funds needed to take over lender's position, which committee was resisting. Situation required prompt analysis of situation and win-win solution for shareholders and investors.
Met with investment committee and proposed that company secure approval to acquire loan from lender. Loan could then be restructured so purchase price would be favorable to fund, control company's dilution, and disallow potential investors if company wanted to find another buyer. Secured committee's approval and negotiated mutually agreeable purchase price of principal balances plus accrued interest of approximately $1.6 million; collaborated with attorneys to draft and structure deal.
Stock prices increased nearly 57.7%. Innovative solution protected company's $3 million investment and facilitated company's improved shareholder value.

Portfolio companies historically raised money through equity in private placements from hedge funds or investment funds. When existing portfolio company raised additional equity capital, company's funds were at risk of being diluted and were also in danger of third investment fund becoming shareholder with bad intentions.
Met with securities attorneys and discussed legal parameters of situation to protect interest of investors. Negotiated and implemented first right of refusal for two years with portfolio companies. Company could refuse another deal if terms or funding were not desirable. Two years was long enough to reduce exposure and holdings of stock as well as decrease risks. First right of refusal was added to all legal forms, term sheets, and definitive documents.
Protected $55 million in investments and obtained first right of refusal on future investments.

Business development and sales team presented deals for funding that required more money than would be made from trading liquidity quantitative standpoint. Company would need more than one year to trade out of stock for amount required. Business development and sales team wanted company to fund deal because of large commissions and bonus. Company had approximately $40 million in cash fund at that time to place in deals.
Met with managing partner and staff to communicate situation and develop formula/processes for sourcing deal that would fit company's investment criteria. Recommended and implemented favorable compensation package for business development and sales team to avoid conflict of interest. Investors' interest remained top priority due to fiduciary responsibility to investment funds. Maintained stringent discipline for strategy with 12-month liquidity horizon based on quantitative formula and due diligence checklist.
Funds produced month over month of positive returns and net fees, allowing company to market investment funds and raise more than $100 million in one year. In addition, revenues and incomes increased minimum of $1.1 million.

Portfolio company wanted fixed deal, or "at-market deal," on investment. Company did not have downside protection on investment. Investment would be higher risk than provided for in business strategy. Company liked deal and sector, but could not fund investment based on fixed-price deal.
Persuaded portfolio company to perform due diligence on funds and check references of other portfolio companies in order to prove company did not offer poor fund strategies. Conducted due diligence on portfolio company and discovered that portfolio company previously raised money that was near price to be structured. Portfolio company's trading history favored pricing. Provided information, facts, and data then explained findings to portfolio company. Successful negotiations were commenced based upon findings.
ROI was $65.5 million for funds on $10 million investment.

Independent auditors wanted to write off $3 million investment (restricted security) that was in portfolio for more than two years, but there was value for investment and should not be written down. There was lack of awareness regarding integration of private biodiesel company into what was previously shell (public) corporation.
Conducted conference call with partner and manager of audit firm to discuss acquisition of private company and value added to newly formed public company. Leveraged Bloomberg's and Capital IQ's services and provided in-depth narrative of company's history that included details of acquisition's terms, financials, and reports about biodiesel industry. Provided attendees with liquidity analysis of balance sheet proving strength of assets and trading liquidity history; results proved that based on dollar-volume trading, potential exit of stock was possible.
$3 million in write-offs were prevented.

Company needed to negotiate agreement with sales firm representative that required no retainer fees and performance-based commissions as compensation. Company was raising more money from investors due to liquidity concerns and small budget with no cash flow.
Identified sellers' rep firm and negotiated compensation package based on performance rather than monthly fees. Explained benefits and value of product and proved that bulk orders would drive sales into range of millions of dollars.
Successfully negotiated favorable sales rep agreement with performance-based compensation, saving company $65,000 annually.

Reporting time on Net Asset Value (NAV) of funds for investors needed to be reduced; challenged with facilitating company's outside administrators to streamline NAV process, which included applying discounts to restricted securities and involving valuation committee on specific days throughout process.
Met with valuation committee and designated meeting times to discuss valuation issues and concerns with administrators to streamline process. Communicated importance of striking NAV on timely basis with administrators and supported development of resources by internal staff.
NAV for three hedge and investment funds worth approximately $200 million in assets was produced 47% faster within seven days of month's end consistently, efficiently, and accurately. Large investors were very satisfied, which increased investors' position more than 50%. Additional $10 million was invested into investment fund by investors.

Portfolio company did not want to convert preferred stock investment into common stock. Portfolio committee was reluctant to involve lawyers because of potential high costs of legal expenses associated with process.
Met with portfolio committee and presented facts and circumstances to counteract anticipated resistance in converting stock. Explained that portfolio company did not want to have dilution impacted, and CEO/Founder wanted to retain certain percentage of company. Communicated to company that as fiduciary responsibility to fund, company had to act from legal standpoint and save investment.
Saved company $1.1 million through collection process by anticipating problems and accelerating process through legal channels.