Monticello Capital

Investment Banking
Private Investment
Corporate Advisory Services

Private Investment

Our Private Investment case studies:
Growth
Harvest
Restart
Expansion

Growth

A Flagship for Growth

The principals of Monticello Capital formed and capitalized a stand-alone Delaware-registered holding corporation.  It was the firm’s flagship special purpose entity for a major cycle of investment in the environmental resources field, broadly defined.

Monticello Capital was the company’s advisory investment bank.

In its growth stage the company was purposed and defined to have a pre-planned five year corporate existence with five distinct streams of revenue and profit:
  • new technologies and intellectual property bought and then sold or licensed
  • global project finance
  • joint ventureships and limited partnerships formed to participate financially with major multinationals operating in the environmental field or in environmental civil works
  • venture capital equity investment, principally in the United States, Canada, and European Union
  • returns from capital funding of a parallel stand-alone special purpose entity formed for investments and operations in the EU, Africa, the Middle East, and India
The holding corporation was a portfolio company and an affiliate of Monticello Capital, sharing some officers with the business.

The defining characteristics of this investment banking firm -- quiet, private, quick-closing, inventive, market-driven, and completely circumspect -- served the growth of the investment, resulting in its major expansion and more than sixty transactions.

Harvest

Sale at the Peak of Earnings

Private investment is made in overlapping processes, with compartments, silos, and stages of investment often occurring at the same time.  During the investment cycle, a stand-alone special purpose entity was formed in the European Union by Monticello Capital’s principals.

Monticello Capital was the company’s advisory investment bank.  Two of the Big Four accounting firms were its auditors.

The EU was chosen rather than the available tax havens because of the firm’s unwavering commitment to compliance and transparency.  Registration was in Luxembourg, banking was in the United Kingdom, Luxembourg, and Italy.

The industrial focus was energy, the environment, and alternative energy technologies.  The company also made a significant expansion into Saudi Arabia and the greater Middle East, with an operational branch located in Riyadh.

Investment returns were maximized by a mix of debt provision and direct equity investment throughout the then-rapidly expanding EU, Africa, the Middle East, and India, with earnings from ten distinct revenue streams:
  • Engineering project finance
  • Power grid engineering services
  • Global environmental technology licensure
  • Construction finance
  • Technology licensure transaction finance
  • Intellectual property licensure and representation
  • Environmental advisory reviews for global financial services firms
  • Geographical investment arbitrage
  • Environmental subcontracting to major multinationals
  • Credit facilities provided to small environmental companies
Investment harvest was achieved in 52 months by a sale outright with no discount to the credit facilities extended by the firm, and an internal rate of return, cash-on-cash, in excess of 42 percent.

Restart

Engineering a New Company

Their old company had just imploded.  The professional employees, unpaid for months, walked out as a group.

They were young environmental engineers, not seasoned executives, and knew only one financing source.  Their telephone call came in to Monticello Capital with a carefully-reasoned and well-considered request: Would you consider start-up venture funding for our gifted team, including an experienced general manager and a financial professional?

The answer -- conditioned on oversight and goals -- was yes.

Weeks of intense work followed.  A disciplined business plan was written with hard-number financial waypoints, profitability goals, legal enablements, employment contracts, policies and procedures for public tenders, build-out plans, strict cost constraints, and transparent salary schedules.  A planning session with the financiers set the strategy and chose the corporate brand identity.  The team solidified and prospered.  The engineers committed to each other as business partners.

Closing the financing with an all-cash equity investment launched the new company, then owned by Monticello Capital’s affiliate, a stand-alone Delaware-registered special purpose entity.

A phenomenal record of sales and engineering successes quickly followed, with the firm turning in perhaps the most successful start-up first year in its home country’s recent history.

After 20 months, the company was acquired by its founding professionals -- an extraordinarily successful restart creating jobs and profits globally.

Expansion

Win-Win in Logistics Services

Corporate growth often presents its own new set of challenges.

The firm was introduced to Monticello Capital’s affiliate, a stand-alone Delaware-registered special purpose entity, as a service provider for its operations in the United States, Canada, and in numerous trans-Atlantic venues.

Owned and managed by a career logistician, it was a terrific vendor to the holding company and its wide-ranging business operations in the energy and environmental industries.

This excellent vendor relationship gave way to a new role -- direct investment and the provision of expansion capital.

With multiple tranches of capital invested in a two-year period, a significant equity stake in the company was secured.  Executive management and the investors both described their connection as strategic, highly synergistic, revenue-enhancing, and completely focused on expansion.

The firm’s cost of capital was marginally lower than other pure financial equity investors would ever have offered, and the involvement of the holding company was accretive to its own strategic financial milestones.

Return on invested capital exceeded 30 percent internal rate of return when the logistics company was sold to a strategic buyer, a large private company within the industry.