The Exit Playbook: How to Sell a Business the Right Way

Every business owner expects the exit to be the finish line. But for most, it's the moment they're least prepared for. In the third and final episode of the ATL Alts Business Owner Masterclass, host Andres Sandate and Brad Gunter (Founder & CEO, High Point Advisory Group) go deep into the sell-side playbook -- covering everything RIAs need to know to help their business owner clients navigate the most consequential financial event of their lives.

Brad and Andres break down the critical mindset shift from 'I'm ready to sell' to truly 'exit ready,' the timeline reality that surprises most owners (three years is the minimum; five if you want full tax optimization), and why showing up to a deal without a sell-side QOE is like going to court without a lawyer. They map the full buyer universe -- from SBA-backed search funds to independent sponsors, private equity, strategics, and family offices -- and explain what each type of buyer actually wants, how they operate, and which seller profile fits each best.

The conversation then turns to deal mechanics that can make or break the net economics: equity rollovers and the second bite at the apple, seller notes, earnouts, escrows, holdbacks, working capital adjustments, and reps and warranties. They also cover the tax planning conversation that most advisors wait too long to have -- QSBS, short vs. long-term capital gains, qualified opportunity zones, deferred sales trusts, and charitable structures. And they close with what happens after the wire hits: how to help a liquid entrepreneur think about generational wealth, alternatives, and the next chapter.

This episode is for every RIA with a business owner client considering a sale in the next three to five years.

Episode Overview

The series culmination. Brad and Andres cover the full exit arc -- mindset, timing, sell-side diligence, buyer selection, deal mechanics, tax strategy, and post-liquidity wealth deployment. This episode is the most immediately actionable for RIAs: every section maps to a specific conversation they should be having with business owner clients right now.

Timestamps

0:00 Series recap -- buying (Ep 1), operating (Ep 2) -- and why the exit is the 'peak of the trilogy'

3:37 The critical mindset shift: 'I'm ready to sell' vs. 'exit ready' -- and why most owners confuse the two

5:08 The Rolls-Royce vs. deal-hunter spectrum: how to identify which buyer profile fits your client's business

6:45 The clean test for exit readiness: could a QOE team, lawyers, and a lender go through the business without substantial issues?

8:18 The wealth event and why it's underestimated: 75-80% of net worth in a single transaction, often for the first and only time

10:00 Why owners resist outside advisors: 'I've been successful at everything else -- why would this be different?'

11:37 The surgeon analogy: why you want a specialist, not a generalist, for every lane of the exit

13:30 The continuum of wealth: from OpCo cash flow to family office -- and where the RIA fits throughout

16:28 Sell-side timeline reality: start the day you launch; buyers look at 3 years of financials; QSBS takes 5 years

18:31 What to do if you have 18 months: sell-side assessment, retroactive cleanup, quick-hit fixes

19:41 The RIA's call to action: ask 'what's the five-year strategy?' not 'when are you selling?' -- and listen for alarm bells

21:40 The sell-side QOE: why the seller should pay for one, how it shifts negotiating leverage, and when it's required by M&A advisors

24:28 War story: $50M deal collapses to $3M cash at close -- seller note the rest, life's work nearly gone

25:33 The buyer universe from bottom to top: SBA/search funds, independent sponsors, private equity, strategics, family offices

29:00 What each buyer type actually wants: SBA timeline (90+ days), IS deal-first capital-second, PE's return clock, strategics overpaying for a gap-fill, family offices holding forever

33:00 It's not just price -- employees, community reputation, business continuity, and legacy all matter to sellers

33:33 The second bite at the apple: equity rollover mechanics -- 80/20 split, capital stack math, betting on PE to grow EBITDA 50%+

36:52 Deal terms that determine net economics: seller notes, earnouts, escrows, holdbacks, working capital pegs, reps and warranties

40:00 Time value of money in deal terms: why buyers beat the headline number by spreading payments -- and how the RIA can model this

41:05 Tax planning at exit: short vs. long-term capital gains, QSBS (5 years, first $10M tax-free), QOZs, deferred sales trusts, charitable structures

44:35 The three forces converging in alternatives: clients asking for alts, asset managers targeting wealth, and underserved investors -- and how EnduranceX addresses all three

48:00 The advisor coordination problem: 5-6 parties at the exit table, and who plays quarterback

49:14 The full exit advisory team: M&A advisor, wealth advisor, tax advisor, accountant, fractional CFO, legal

51:11 Post-liquidity: liquid entrepreneurs who want to redeploy, the non-compete reality, and why most shouldn't go all-in like Elon

54:00 The generational wealth conversation: 80-year time horizons, compounding capital, and why multigenerational clients belong in alternatives

56:30 Brad's one mindset shift for every RIA: stop assuming you'll get the money one day -- start maximizing it by bringing in the right experts now

57:15 Series close and what's next for the EnduranceX / High Point partnership

Key Takeaways

• 'I'm ready to sell' is a feeling. 'Exit ready' is a score. Can a QOE team, lawyers, and a lender go through your business without substantial issues and re-adjustments? That's the real test.
• Three years is the minimum prep timeline. Five years is ideal for full tax optimization (QSBS, QOZ, charitable structures). If a client says 'I want to sell next year,' alarm bells should be ringing.
• A sell-side QOE is not optional for serious transactions. It shifts negotiating leverage from the buyer's table to yours, surfaces skeletons before they surface in diligence, and is increasingly required by sophisticated M&A advisors and investment banks.
• The buyer universe is wider than most owners realize: SBA/search funds (sub-$5M-$10M), independent sponsors (deal-first, capital-second), private equity (return clock, operational pressure), strategics (willing to overpay for a gap-fill), and family offices (no horizon, hold forever). Each requires a different seller profile and prep strategy.
• Deal mechanics determine net economics more than headline price. Seller notes, earnouts, escrows, holdbacks, working capital pegs, reps and warranties -- these are the terms sophisticated buyers use to spread cost over time and transfer risk back to the seller.
• The second bite at the apple is one of the most underutilized exit structures in the lower middle market. Roll 20%, take 80% cash, and bet that a PE firm grows your EBITDA 50%+ in five years. That 20% can be worth more than the 80% you sold.
• QSBS is the single most powerful tax tool for business sellers -- but only if the clock started at least five years before the exit. The first $10M in gains is tax-free on a qualifying C-corp. RIAs who don't surface this early are leaving potentially millions on the table.
• The exit advisory team needs a quarterback. Five or six parties (M&A advisor, wealth advisor, tax advisor, accountant, fractional CFO, legal) each operate in their own lane. The RIA is the best-positioned to quarterback the whole process -- but only if they're in the room years before the sale.
• Post-liquidity, most business owners are liquid entrepreneurs who want to redeploy. The job of the RIA is to help them take chips off the table, diversify intelligently (including into alternatives), and protect generational wealth from being redeployed too aggressively too fast.
• Brad's one mindset shift for every RIA: stop assuming you'll get the assets someday and start maximizing today by bringing in the right specialists now. That operating business is your client's largest asset. Treat it like one.

The Full Exit Advisory Team -- Who Plays What Role

M&A Advisor / Investment Bank

Runs the sale process -- buyer outreach, marketing, negotiation, LOI management, closing coordination

Wealth Advisor (RIA)

Quarterback of the overall process; post-liquidity asset deployment, tax-aware structuring, portfolio construction, long-term wealth planning

Tax Advisor

Pre-exit planning (QSBS, QOZ, deferred sales trust, charitable structures, F-reorg); entity election optimization; post-close tax filing

Accountant / CPA

Historical financial statements, tax return prep, coordination with QOE team; data room population

Fractional CFO (e.g., High Point)

Runs internal financial process; coordinates data room; interfaces with buy-side QOE team; financial modeling of deal terms

QOE Provider (Sell-Side)

Normalizes and verifies EBITDA; surfaces issues before they hit diligence; provides negotiating leverage; may be required by M&A advisor

Legal Counsel

LOI review, purchase agreement, reps and warranties, indemnification, escrow structure, non-compete, employment agreements

RIA EXIT READINESS CHECKLIST -- QUESTIONS TO ASK BUSINESS OWNER CLIENTS

Use these questions to assess where a business owner-client stands on the exit-readiness spectrum -- and to identify where High Point Advisory Group can step in.

Timing and Mindset

• What does your five-year plan look like for the business?
• Have you had a professional assessment of what the business is worth today?
• If you had to sell in the next 12 months, what would break down first?
• Is the business sellable without you in it today?

Financial and Operational Readiness

• Do you have three years of clean, accrual-based financials ready to share with a buyer?
• Is there a data room prepared, or could one be assembled quickly?
• Have you had a sell-side QOE done -- or any third-party assessment of your EBITDA?
• Are there any material issues a buyer would find in diligence that you're aware of?

Tax Planning

• Has your tax advisor evaluated your eligibility for QSBS -- and when did you start the clock?
• Have you explored qualified opportunity zones, deferred sales trusts, or charitable structures?
• Is the business currently structured in a way that maximizes post-tax proceeds at exit?
• Are you currently running personal expenses through the business?

Deal Mechanics Awareness

• Do you understand the difference between a seller note, an earnout, and an equity rollover?
• Have you modeled what different deal structures mean for your actual cash at close?
• Do you have a wealth advisor who's already part of your exit planning team?
• Who is your quarterback for the exit process -- or have you identified who that will be?

Post-Liquidity

• When this business sells, what do you want the proceeds to do for you and your family?
• Do you have a non-compete clause that would restrict your next move -- and for how long?
• Have we talked about what multigenerational wealth building looks like on the other side of this?
• Are you familiar with alternatives as an asset class, and how they fit into a post-liquidity portfolio?

GUEST BIO -- BRAD GUNTER, Founder and CEO, High Point Advisory Group

[email protected]

(770) 280-7348

Atlanta, GA

highpointadvisorygroup.com

Brad Gunter is the Founder and CEO of High Point Advisory Group, a lower middle market advisory firm delivering transaction advisory (buy-side and sell-side Quality of Earnings), fractional CFO and accounting services, strategic exit preparation, and capital advisory. Brad built High Point to fill the institutional advisory gap for businesses in the $5M-$100M range -- a space where those services are historically unavailable or unaffordable. Prior to founding the firm in early 2024, Brad held roles at Deloitte's strategy and M&A group and served as Head of Strategy at a private equity platform. He earned his MBA from Georgia Tech. High Point works alongside RIAs and family offices as a non-competing partner, covering the operating and transactional dimensions of a client's financial life that traditional wealth management doesn't touch.

Companies mentioned in this episode:

• High Point Advisory Group
• GPWA
• Gramercy Park Wealth Advisors
• EnduranceX

Mentioned in this episode:

Brad Gunter Masterclass Post Script

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The Forgotten Chapter: Operating a Business Like an Institution

Most conversations in wealth management focus on two events: buying a business and selling one. But the years in between -- the operating chapter -- are where 90% of the value is created or destroyed. In Episode 2 of the ATL Alts Business Owner Masterclass, host Andres Sandate sits back down with Brad Gunter, Founder & CEO of High Point Advisory Group, to explore exactly what it looks like to run a lower middle market business with institutional discipline -- and why RIAs need to be in that conversation.

Brad and Andres walk through what good operating infrastructure actually looks like for a $20M-$100M business: accrual accounting, governance cadence, clean entity structure, management depth, and the capital allocation frameworks that separate companies that command premium exit multiples from ones that collapse in diligence. They introduce High Point's four-phase institutional roadmap -- from OpCo stability through portfolio visibility, capital controls, and strategic optionality -- and walk through a nine-dimension Family Office Readiness Assessment that any RIA can use to diagnose where a business owner client truly stands.

Brad also shares two war stories from the construction industry where sellers expecting $10-15M at close walked away with a fraction -- because no one had been paying attention to the operating infrastructure. If you manage business owner clients and you're not having this conversation at least quarterly, this episode will show you exactly what you're missing -- and how to fix it.

Episode 3 is coming soon: The Exit Plan -- how to prep a business and maximize the liquidity event.

Episode Overview

Brad and Andres tackle the middle chapter of the business ownership lifecycle -- the operating years. This episode is the most actionable of the three for RIAs: it delivers concrete frameworks, diagnostic tools, and a sequenced roadmap for how to help clients build institutional-grade businesses before ever entering an exit process.

Timestamps

0:00 Intro -- Recap of Episode 1 (acquisition as alpha) and the focus of Episode 2

2:35 "The Forgotten Chapter" -- why the operating years are where 90% of value is created or destroyed

4:24 The RIA's role during the hold period: from reactive to integrated, from asset-gatherer to growth partner

5:20 What good operating infrastructure actually looks like: accrual accounting, governance, systems, customer concentration, management depth

7:08 How to introduce a 20-minute business update into a quarterly client review -- and why it makes the RIA stickier

8:09 High Point's role: transaction advisory + fractional CFO/OpCo management for the lower middle market

8:44 The diagnosis step: what does Brad find when he walks into a $50M business? The most common patterns

10:09 Finance as an afterthought: the cash-in-the-bank fallacy vs. institutional reporting discipline

12:12 Owner dependency, lifestyle businesses, and why personal/business expense mixing kills exit value

14:25 Clean entity structure: HoldCo, OpCo, IP co, real estate -- the two core principles (tax efficiency + liability isolation)

16:28 "Flooding the zone" -- how to introduce structural and operational conversations without overwhelming the client

18:14 People vs. systems: why people are 70% of the equation and why AI doesn't change that -- yet

19:55 The five-year operating roadmap: finance first, reduce concentration, build the team, governance and capital allocation framework

23:51 High Point's four-phase institutional roadmap: Phase 0 (OpCo stability) -> Phase 1 (portfolio visibility) -> Phase 2 (capital and decision controls) -> Phase 3 (optionality and scale)

26:12 How the RIA uses the roadmap: introducing the capital allocation conversation, spotting trapped cash, and growing AUM

29:34 Capital allocation discipline: the four doors for free cash flow (acquire, reinvest, distribute, pay down debt) and the written framework with return hurdles

32:07 The nine-dimension Family Office Readiness Assessment -- a scoring tool for RIAs to use with business owner clients

37:14 Cybersecurity as a due diligence risk in lower middle market acquisitions

38:16 Capital allocation deep dive: WACC, return hurdles, and the cadence of deploying cash intelligently

44:05 War story #1: $15M construction deal collapses to $3M cash at close -- no inventory system, no job costing, no way to track COGS

46:30 War story #2: Miami construction company, $5M EBITDA, handwritten invoices only -- four LOIs, zero closed deals, $150K in financial cleanup they refused to pay

48:48 Advisor's role summary: quarterly cadence, quarterback the relationship, bring in High Point for the operational assessment

49:04 High Point's free evaluation offer: value creation plan, minimum 300% ROI on findings

50:37 Three-years-to-exit action plan: who to call and what to do this week

Key Takeaways

• 90% of a business's value is created or destroyed during the operating years -- not at acquisition or exit. The RIA's job is to be in that conversation, not just waiting for the phone to ring when a check clears.
• The single most common gap in lower middle market businesses: finance treated as an afterthought. No accrual accounting, no monthly close, no reporting package. A $60M business on cash accounting is essentially flying blind.
• Good operating infrastructure means: accrual-based GAAP financials, monthly reporting, a governance board with documented meeting notes, systems that answer questions without a two-week delay, and a management team that can run the business if the owner disappears for a month.
• Clean entity architecture -- HoldCo at the top, separate OpCos, IP company, real estate entity -- protects wealth and dramatically simplifies an exit. The two principles: tax efficiency and liability isolation.
• People are 70% of the equation. AI and systems matter, but you can't automate trust. A new executive who started last week creates enormous buyer risk. Time in seat is irreplaceable.
• The four-phase institutional roadmap: Phase 0 (OpCo cash flow) -> Phase 1 (portfolio visibility) -> Phase 2 (capital and decision controls) -> Phase 3 (strategic optionality and scale). Most business owners are stuck between Phase 0 and Phase 1.
• The nine dimensions of the Family Office Readiness Assessment: governance & controls, legal & entity architecture, financial infrastructure, capital allocation discipline, risk management & asset protection, human capital & shared services, tech & data, strategic optionality, and exit readiness.
• Capital allocation requires a written framework with return hurdles and approval thresholds -- not gut feel. The four doors for free cash flow: acquire, reinvest in the OpCo, distribute to the family, or pay down debt.
• High Point's current offer: free operational evaluation for businesses referred by RIA partners. Findings have generated minimum 300% ROI for clients. If the owner enters a long-term engagement, any upfront cost is credited back.
• The RIA's quarterly business review questions: What does adjusted EBITDA look like? What multiple could we achieve today vs. in two years? What's the capital allocation plan? Is there a governance cadence in place?

Introducing our three-part masterclass for RIAs advising business owner clients: From Acquisition to Exit: The Comprehensive Guide for RIAs and Business Owners

Part 1 of 3: The Hidden Asset Class: A Framework for Buying a Business

Most RIAs treat their client's operating business as a black box — reviewing it only when a liquidity event is imminent. But for business owners in the lower middle market, that operating company often represents 70–80% of total net worth. In this first episode of a three-part Masterclass series, host Andres sits down with Brad Gunter, Founder & CEO of High Point Advisory Group, to explore what it really means to help a client buy a business — and why getting involved early changes everything.

Brad brings a rare perspective: post-MBA experience at Deloitte's strategy group, M&A work inside a private equity platform, and a front-row seat to the advisory gap that exists below the $100M business threshold. Together, Brad and Andres walk through how to source acquisition targets (inbound vs. strategic outbound), why a Quality of Earnings report is non-negotiable — and how it can return 100x its cost — and how to structure a capital stack that protects the buyer without leaving the seller dead in the water.

Whether you're an RIA looking to position yourself as a true business growth partner, or a wealth advisor trying to have a more integrated conversation with your most sophisticated clients, this episode will give you the frameworks, vocabulary, and war stories to engage at a completely different level. The hidden asset class is hiding in plain sight — and your clients need you to pay attention to it.

Tune in for Episodes 2 and 3, where Brad and Andres tackle operating a business for value creation and preparing for a successful exit.

Takeaways:

• The wealth management industry often overlooks the operating company, which constitutes a significant portion of a business owner's net worth, necessitating a more integrated approach to asset evaluation.
• Institutional-grade oversight for lower middle market businesses involves rigorous financial reporting and proactive monitoring to ensure optimal performance and strategic decision-making.
• Effective acquisition strategies must be grounded in a disciplined 'Buy Box' framework, ensuring that targets align with the operational strengths and strategic vision of the acquiring company.
• The Quality of Earnings (QoE) analysis is essential in uncovering hidden financial realities that can dramatically alter acquisition valuations, thereby protecting the buyer's financial interests.
• Understanding the nuanced landscape of capital financing options, beyond traditional SBA loans and cash purchases, is critical for optimizing the capital structure and mitigating risks associated with acquisitions.
• Finally, assembling the right advisory team in a structured sequence is paramount; initiating with the RIA, followed by transaction advisors and legal counsel, can streamline the acquisition process and enhance outcomes.

To learn more about High Point Advisory Group and how Brad’s team supports the full lifecycle of business ownership — buying, funding, operating, and exiting — connect with him here:

https://www.highpointadvisorygroup.com/contact

To learn more about Gramercy Park Wealth Advisors, our alternative investment platform called EnduranceX, and how we assist business owner clients and RIAs - connect with us here:

https://calendly.com/sandate/aboutgpwa

Companies mentioned in this episode:

• High Point Advisory Group
• EnduranceX
• Gramercy Park Wealth Advisors

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 3Spoke
• The 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 sale
• Why "growth equity" — the crossover between late-stage venture and early private equity — is the most underserved liquidity zone in the market
• The use cases: common shareholders, option-holders facing expiration, LP fund interests, GP-led secondaries, and GP carried-interest advances
• Portfolio names from 3Spoke's history, including DocuSign, Airbnb, Uber, Canva, Databricks, and eToro
• The "three spokes" origin story: why no structured deal closes without aligning the capital provider, the seller, and the underlying company or GP
• Information asymmetry on pre-IPO platforms and why retail buyers of common stock are routinely paying the wrong price
• The 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 mitigation
• The 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 sale
• The 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 buyout
• The "growth equity" sweet spot: late-stage venture meets early private equity — companies with $250M–$500M in revenue and $1B+ enterprise values
• Five 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 protection
• The 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

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.

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.

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.com
• www.Whitehaven.com
• www.gpwealthadvisors.com

Companies mentioned in this episode:

• Whitehaven
• ATLalts
• Gramercy Park Wealth Advisors, LLC

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

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.com
• Cambridge Associates Research on Growth Equity
• Goldman 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.

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

1. Introduction of the Team and Building Del Cam as a new Private Equity Platform Focused on Manufacturing
2. The Case for U.S. Manufacturing: A Golden Era
3. Macro Tailwinds for U.S. Manufacturing (particularly relevant with tariffs being enacted in February 2025 with Canada and Mexico)
4. Del Cam's Investment Processes including deal sourcing, due diligence, and post-acquisition value creation
5. Portfolio Highlights of The Shortening Shuttle and Space Age Electronics

Links referenced in this episode:

• delcamcapital.com
• gpwealthadvisors.com
• atlalts.com
• EOS 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