Miller
NEWPORT BEACH, CA-Four former executives of KBS Capital Markets Group—Pat Miller, Ken Jaffe, Mike McDaniel and Mark Brandenberger—have established a new financial services organization called Strategic Capital Cos. LLC. Strategic is composed of a Finra-registered broker dealer, SC Distributors LLC, as well as a separate advisory services organization, Strategic Capital Advisory Services LLC.
The four principals have been involved in the development of such distribution organization as AXA Distributors and MetLife Investors. Their most recent experience was helping to build KBS Capital Market Group where, during their tenure, KBS Capital Markets Group raised $2.3 billion in equity capital in approximately 36 months.
Jaffe
The company says that its aim is to offer a platform designed to provide financial advisers and their clients with access to a focused group of what it believes are “best-in-class” investment managers. Miller, president of SC Distributors LLC, comments that the firm’s distribution model is “specifically designed to connect professional financial intermediaries with high-quality product sponsors.” The new company plans to begin by focusing its efforts in the alternative investment sector, with an emphasis on nontraded REITs.
To help identify, analyze and evaluate potential REIT sponsors, it has enlisted the help of Macquarie Capital USA, a division of the $15 billion Macquarie Group. Since 2002, Macquarie Capital USA has conducted over $90 billion in real estate. It has also completed over $530 billion in M&A advisory assignments since 2000.
McDaniel
Through SC Distributors, the company is preparing to enter the market with a group of nontraded REIT offerings, each from different real estate sponsors, between now and the fourth quarter of 2011. SC Distributors is already slated to be the dealer manager for the up to $1.5 billion Carter Validus Mission Critical REIT.
According to a prospectus filed with the SEC, the REIT will acquire mission critical real estate assets in the data center, healthcare and education sectors. Mission critical real estate assets are facilities that have been designed to support the most essential business operations of the tenant.
In addition, SC Distributors will serve as dealer manager for a second non-traded REIT, the up-to-$1-billion O’Donnell Strategic Gateway REIT, which was filed with the SEC in October. According to the SEC filing, the O’Donnell Strategic Gateway REIT intends to acquire “green” industrial warehouse/distribution facilities located in strategic US distribution hubs.
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Brandenberger
Among the key hires at SC Distributors are Holly Hughes, director of national accounts, who formerly was vice president and head of strategic accounts at AXA Distributors; Robert Bruce, director of marketing, who was vice president of marketing for
Cornerstone Real Estate Funds; Jim Condon, sales desk manager, who led internal sales efforts with American Funds, Schroder Investment Management and Refco Alternative Investments; Jim Kearny, chief compliance officer, who has more than 20 years of senior level experience in various operations and compliance roles; Tony Llopis, director of financial operations, who most recently was assistant vice president of finance at MetLife Investors.
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