Montgomery Capital Advisers, LLC: Company Profile

Background

Montgomery Capital Advisers, LLC (MCA) is a diversified capital management and business advisory firm established in 2001, with offices in Dallas and Plano, Texas. The firm specializes in managing debt and equity investments in distressed debt, operating entities, and other opportunistic investments, focusing primarily on lower middle-market, owner-managed businesses. MCA also serves as a principal in direct equity and debt investments in operating companies and provides professional advisory services to portfolio companies.

Mission Statement: To make direct term debt and preferred equity investments in Texas-based, owner-managed companies, emphasizing businesses lacking access to traditional financing options.

Vision Statement: To use capital, experience, and creativity to enhance the value of portfolio companies, deliver competitive returns to investors, and create wealth for shareholders.

Core Values: Relationships, Integrity, Purpose, Excellence, and Value Creation.

Key Strategic Focus

MCA's strategic focus centers on providing flexible and creative debt and equity financing solutions to lower middle-market, owner-managed businesses in Texas, particularly those with limited access to traditional financing. The firm emphasizes:

Core Objectives: Enhancing portfolio company value, delivering competitive investor returns, and creating shareholder wealth.

Areas of Specialization: Debt and equity investments in distressed debt, operating entities, and other opportunistic investments.

Key Technologies Utilized: While specific technologies are not detailed, MCA employs modern technology stacks, including Google Cloud and HTTP/3, indicating a commitment to digital efficiencies.

Primary Markets Targeted: Lower middle-market, owner-managed businesses in Texas.

Financials and Funding

MCA has been managing private debt investment funds for nearly two decades, focusing on providing term debt financing of $1,000,000 to $4,000,000 to lower middle-market operating entities. The firm has historically generated returns in the range of 12-15% over a typical 6-year fund life.

Recent Funding Rounds: Specific details on recent funding rounds are not publicly disclosed.

Notable Investors: Information on individual investors is not publicly available.

Utilization of Capital: Capital is utilized to provide debt and equity financing to portfolio companies, focusing on enhancing value and generating returns for investors.

Pipeline Development

MCA's investment activities are conducted through Montgomery Capital Partners V, LP, which is in its final year of the investment period. Previous funds, including Montgomery Capital Partners I, LP, have been fully liquidated, and Montgomery Capital Partners II, LP, is in the process of resolving its final investment. Funds III and IV are no longer making investments and are returning capital to investors.

Key Pipeline Candidates: Specific details on pipeline candidates are not publicly disclosed.

Stages of Development: Investments are in various stages, with some funds in liquidation and others in the process of returning capital.

Target Conditions: Focus on lower middle-market, owner-managed businesses in Texas with limited access to traditional financing.

Anticipated Milestones: Completion of current fund investments and return of capital to investors.

Technological Platform and Innovation

MCA employs a modern technology stack, including Google Cloud and HTTP/3, indicating a commitment to digital efficiencies.

Proprietary Technologies: Specific proprietary technologies are not detailed.

Significant Scientific Methods: While specific methodologies are not disclosed, the firm's use of advanced technologies suggests a data-driven approach to investment analysis and decision-making.

Leadership Team

The leadership team at MCA comprises experienced professionals with diverse backgrounds in finance, accounting, and business advisory services.

Tom Montgomery – Managing Member

Professional Background: Certified Public Accountant with a Master's in Accounting and Taxation from Texas Tech University. Co-founded Montgomery Coscia Greilich LLP, a full-service CPA firm, and Beal Capital Markets, Inc., an investment subsidiary of Beal Bank.

Key Contributions: Established MCA, focusing on debt and equity investments in lower middle-market, owner-managed businesses in Texas.

Larry Calton – Executive Manager and Licensed CPA

Professional Background: Over 28 years of experience in various industries and roles, including senior management consulting and financial advisory services. Joined MCA in 2015 as a deal principal and manager.

Key Contributions: Provides strategic guidance and management for MCA's investment activities.

William Hamad – Vice President

Professional Background: Experience in evaluating investments, performing due diligence, and post-closing consulting. Joined MCA in 2018 and returned in 2022 after a two-year tenure at Brinks Home Security.

Key Contributions: Enhances investment evaluation and due diligence processes, and increases the value of post-closing consulting for portfolio companies.

Carlos A. Lacayo – Vice President

Professional Background: Previously associated with Citi, focusing on middle-market and mid-corporate clients in the general industrials sectors. Joined MCA in 2019.

Key Contributions: Evaluates investment opportunities, performs transaction due diligence, and consults with company management teams to implement operational and growth strategies.

Doak Kuhne – Associate Vice President

Professional Background: Experience in fund manager due diligence, track record analysis, investment analytics, secondary fund and direct valuations, and institutional investor reporting. Joined MCA in 2024.

Key Contributions: Evaluates investment opportunities, performs transaction due diligence, and consults with company management teams to implement operational and growth strategies.

Amy Abernathy – Fund Controller

Professional Background: Experience in fund accounting and administrative responsibilities. Joined MCA in 2019.

Key Contributions: Manages fund accounting and provides various levels of accounting consulting to clients.

Myra Flick – Fund Controller

Professional Background: Experience in fund accounting and administrative responsibilities. Joined MCA in 2017.

Key Contributions: Focuses on fund companies' accounting and reporting and provides various levels of accounting consulting to clients.

Sharla Gunn – Community Relations Coordinator

Professional Background: Experience in business development and strategic growth initiatives. Joined MCA in 2009.

Key Contributions: Coordinates investment forums and works alongside portfolio companies on various projects.

Daniel Lunsford – Vice President

Professional Background: Experience in business development within the healthcare sector, specializing in medical device commercialization. Joined MCA in 2024.

Key Contributions: Collaborates with senior leadership to identify and evaluate investment opportunities and provides guidance to portfolio companies to improve financial performance.

Competitor Profile

Market Insights and Dynamics:

The market for private capital management and business advisory services targeting lower middle-market, owner-managed businesses in Texas is characterized by a need for flexible financing solutions. These businesses often face challenges accessing traditional financing options, creating opportunities for firms like MCA to provide tailored debt and equity financing.

Competitor Analysis:

MCA operates in a competitive landscape with several firms offering similar services. Notable competitors include:

MidCap Advisors: A boutique investment bank specializing in mergers & acquisitions, strategic planning, capital raising, and business valuation services to mid-market companies across the U.S.

Marathon Capital: An investment bank delivering financial advice to the global energy, infrastructure markets, and clean economy, specializing in the sale and financing of companies, portfolios, and assets within these markets.

Blackstreet Capital Management: A private equity firm investing in and operating small to mid-sized distressed companies, aiming to prevent bankruptcy and benefit investors.

Creative Planning: An independent wealth management firm and registered

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