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Industry

Financial Services

Company Type

Fixed Income Asset Management

Size

$5 Million Equity

Investment Type

Equity

OVERVIEW

Salathé Capital is seeking $5 million of growth capital to facilitate the rollout of a highly scalable investment product strategy based around a new, proprietary fixed income product.

  • Investment managers have over 30+ years of investment management experience

  • Developed a new Fixed Income asset class

  • The firm has a signed placement agreement with a leading Wall Street bank

  • The firm generates predictable recurring fee income plus variable carried interest

  • The Fixed Income product has a very large addressable market and significant AUM may be achieved in a short time frame

  • $350-500 million in AUM within the first 3-5 months

OPPORTUNITY

Unique opportunity for investors, through ownership, to capture fee income and profit participation on a new fixed investment product that can scale quickly

  • First product for institutions that bridges the gulf between equities and debt in a fully rated product

  • Strategy will be executed by a seasoned team with historical success in the targeted space of structured products

  • The size of the asset backed security market has grown steadily from $198.4 billion in 2016, to $312.6 billion in 2021 to $172.1 billion issued through June 2023

  • Management believes that new issuance will run at $1-1.5 billion on an annual basis, and as high as $2.5 billion

  • As the creator of a new and exciting asset class, Salathé Capital plans to utilize significant expertise and first mover advantage to capitalize on this opportunity

Total Structured Product Annual Issuance

SOLUTION/STRATEGY

Salathé Capital is a fixed income asset manager who has developed a new, proprietary fixed income product

  • Salathé Capital’s product offers institutional investors access to a new fixed income asset class with potentially higher yields and low correlations to similarly rated securitized products

  • Leverage our close ties with Wall Street banks to quickly grow the AUM targeting the large pool of institutional investors

  • The product is secured by a basket of diversified investment grade corporate bonds, which provide principal protection

  • There are also a series of derivative contracts embedded in the product which create the cash flow for interest payments and link the product to the equities markets

  • Expand into other credit products such as CLO’s and Private Credit, diversifying and expanding the earnings potential for Salathé Capital

BUSINESS PARTNERS

Leading Service Providers  & Credit Ratings Agency Strongly Demonstrates the Viability of the Product and the Potential of the Asset Manager.

MANAGEMENT

David Sturgeon – Chief Executive Officer

Oversees the day-to-day operations of the firm.  Over 15 years of experience across various asset management roles and industries including managing structured product investment portfolios for a family office and a hedge fund before developing the collateralized structured note (CSN).  Was portfolio manager for R&D Capital Partners, a hedge fund that focused on structured products and a finalist for S&P Cap IQ’s fixed income manager of the year award in 2014.  ​Prior to R&D Capital, senior analyst for Capital Strategies Inc., a single-family office, responsible for modeling and due diligence for structured products and fixed income.  Was an analyst at LandCo Equity Partners, a real estate investment firm, responsible for financial modeling and deal structuring for real estate private equity transactions. Prior to LandCo, analyst at Arrowhead Investments where duties included financial modeling and pitch book preparation, meeting with investors and researching potential real estate private equity business opportunities. BA in Management, University of Northern Colorado.  Master of Science in Finance with an emphasis on fixed income, Daniels College of Business at the University of Denver.

Dr. Richard Williams – Senior Partner

Managed, invested, and consulted for over 35 years in the start-up and development of 15 pre-public biotechnology companies. Helped recruit management, focus business plans, and raise initial capital while serving on the Boards of Directors. Most notable investments were Amgen, a major biotech firm, IGEN (acquired by Roche) and Supergen (acquired by Otsuka Pharma), all originally listed on NASDAQ. Managing partner of Mara Venture Partners, LLC, an early-stage biotechnology venture capital fund and advisor to Vesalius Biocapital Fund, a private equity fund. Served as Chairman of the Board of Trustees of Beacon College in Florida, the first higher education institution accredited to award bachelor’s degrees to students with learning differences and those on the autistic spectrum. ​Managing partner and chief analyst for an options trading firm that owned three seats on the Philadelphia Stock Exchange. Director, acting CEO, and secretary-treasurer of ASM Resources, the venture capital arm of American Society of Microbiology. Member of the Endowment Investment Committee of the American Society of Microbiology that managed a $110 million fund. 20 years teaching and researching microbiology and infectious diseases in European universities and in Africa with the WHO. Author of 85 original peer-reviewed scientific publications. BA and a PhD from the University of California at Berkeley. Master of Science in Finance from George Washington University.

Learn More About Salathé Capital
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CONTACT US

Hi. We're not around right now. But you can send us an email and we'll get back to you, asap.

Thanks, Ken

Ken Margolis | Managing Partner Castle Placement, LLC
1460 Broadway Street, Rte 400
New York, New York 10036
(212) 418-1188 | C: (516) 712-7784
kmargolis@castleplacement.com

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