Welcome To Approach Capital
Our mission is to put the needs of you and your family first, offering objective, independent guidance and proactive wealth planning strategies.
I developed an interest in the capital markets back in my teenage years. I would ride my bicycle down to Dennis’s office, my local stock broker, and learn all I could about the investment markets. I invested my summer work money and was fascinated by what made those monies appreciate.
That fascination led me to earn my B.S. in Accounting from Brigham Young University and go on to work in various finance and accounting jobs at large companies like Wells Fargo and Ernst and Young. Along the way I’ve become a CERTIFIED FINANCIAL PLANNER™ Practitioner, and I am currently pursuing the Chartered Financial Analyst® designation. I am also currently enrolled in the M.S. in Analytics program from Georgia Tech.
I enjoy any outdoor activity (surfing, paddle boarding, hiking, and climbing mountains). In my spare time, I love adventuring with my wife and five children.
Having owned several small businesses throughout my life, I’ve learned the most important quality I can possess is listening to my customer, understanding them, and exceeding their expectations. At Approach Capital Partners, we invest your hard-earned assets and provide customer service in a manner that will exceed your expectations!
Approach Capital develops customized investment solutions to meet the unique needs of our clients. We believe that the individual investor should have full access to a full suite of securities including public and private offerings. We are far more than your traditional broker. Successful investing requires creativity and a willingness to think outside the box of conventional assets. By blending public and private offerings, we strive to increase investment returns, reduce volatility, and diversify portfolios across a broad array of assets.
Our investment model includes three broad asset classes:
America’s wealthiest and institutional investors have long
invested in these three asset classes. Approach Capital
represents the discerning individual investor that recognizes there is more to investing than just a basket of mutual funds.
Our size, expertise, and access to investment solutions our clients with a refreshing alternative to investment management and asset diversification
Approach Capital develops customized investment solutions to meet the unique needs of our clients.
We believe individual investors should have access to a full suite of securities including public and
private offerings. We are more than your traditional broker. Successful investing requires creativity and
a willingness to think outside the box of conventional assets. By blending public and private offerings,
we strive to increase investment returns, reduce volatility, and diversify portfolios across a broad array
of assets.
Our investment model includes three broad asset classes:
1. Global Equities
2. Fixed Income
3. Non-Standard Assets
America’s wealthiest families and institutional investors
have long invested in these three asset classes. Approach
Capital represents the discerning individual investor who recognizes there is more to investing than
just a basket of mutual funds.
Our size, expertise, and access to investment solutions provides our clients a refreshing alternative to
investment management and asset diversification.
Approach Capital offers its clients the following asset classes and investment strategies:
We look forward to discussing in more detail our investment strategies and how we may serve your
unique investment needs.
$
$
Class A Office Buildings
Single Tenant Commercial Buildings (Starbucks)
Commercial Real Estate (Top Golf Complexes)
Private Company Equity Ownership
US Equities
Foreign Equities
Preferred Equities
Real Estate Investment Trusts
Asset Backed Loans
Equipment Lease (property, plant, equipment)
Private Real Estate Financing
Commercial Leases
Corporate Bonds
High Yield Bonds
Asset Backed Loans
Bank Loans
PRIVATE EQUITY (NON-STANDARD ASSETS)
PRIVATE DEBT (NON-STANDARD ASSETS)
PUBLIC EQUITY (GLOBAL EQUITIES)
PUBLIC DEBT (FIXED INCOME)
welcome
APPROACH CAPITAL PARTNERS
Real estate investments may be tied to long-term contracts that have the potential to generate cash flow for
the investor. Historically, diversified portfolios of real assets have generated relatively consistent cash flows
resulting in a more stable return profile. Because of these long-term contracts to high-quality tenants,
volatility may be more contained than in the global equity markets.
strategy
ASSET CLASS
OBJECTIVE
DESCRIPTION
PRIVATE EQUITY
Commercial Real Estate
Income
Direct ownership of high-quality commercial real estate and broad geographic diversification.
WHY
“Real estate is not an alternate to stocks and bonds
– it is a fundamental asset class that should be included
within every diversified portfolio.”
Handbook of Alternative Assets, Mark J. P. Anson
The investment manager has a 40 year history of developing and building single tenant commercial properties
for many of America’s leading retailers and franchises. The manager targets a 15% preferred return to shareholders
with an equity split above the 15% hurdle rate. The portfolio is diversified by multiple credit-worthy
tenants. The duration of the portfolio may be less than 24 months as capital is retired to shareholders at the
sale of each building (on a quarterly basis).
ASSET CLASS
OBJECTIVE
DESCRIPTION
WHY
strategy
PRIVATE EQUITY
Commercial Real Estate
Capital Appreciation, Single Tenant Commercial Real Estate Build to Suit
The investment manager builds stand-alone commercial properties for well know franchises and corporate
stores nationwide. With over 40 years of commercial contracting experience, the manager may acquire land,
construct a building, and lease the building back to well know corporate names such as: Goodyear Tires,
Starbucks, Big O Tires, Dollar General, and LA Fitness. (List of projects are available)
The investment manager actively seeks to sell their properties shortly after the build-out is complete returning
principle + profits back to investors; however, while awaiting the sale, the lease payments from the
30-year leases flow to investors. This is a build to suit strategy based on the specifications of the tenant and
carries a 15 to 30 year lease. This is not a “spec building” strategy.
This strategy provides access to private companies with the most promising financial prospects. These are
companies that have not yet had initial public offerings (IPOs). These are mid to late-stage private companies
that have raised significant funding, have proven business models, have cash flow, and have a robust
customer base.
strategy
PRIVATE EQUITY
ASSET CLASS
OBJECTIVE
DESCRIPTION
Private Companies – Pre IPO
Capital Appreciation
The historically attractive return profile of many late-stage, venture-backed companies has typically only been
available to institutional and high-net-worth investors. Because of excessive regulations and short-term shareholder
demands, many high-growth companies are staying private longer than ever. A significant portion of
their value appreciation has typically occurred before their entry into the public markets. We own this asset to
participate in the pre IPO capital appreciation. A few portfolio holdings include:
WHY WE OWN THE ASSET
COMPANIES ARE STAYING PRIVATE LONGER
EARLY STAGE MID STAGE LATE STAGE
FIRST – 180 DAYS AS A
PUBLIC COMPANY
EXIT
ENTER
PUBLIC MARKET
RISK DURING LOCK-UP
PRIVATE COMPANY LIFE CYCLE 1999 2018
POTENTIAL VALUATION
THE J-CURVE
This chart is for illustrative purposes and does not represent an actual investment
PRIVATE COMPANY MEDIAN AGE & MARKET CAP AT IPO
14
12
10
8
6
4
2
0
$493M
+294%
MARKET CAP AT IPO
$1.94B
4 YEARS
AVERAGE AGE
13 YEARS
AVERAGE AGE
SOURCE: SHARES POST 100 FUND
SOURCE: SHARES POST 100 FUND
Private loans provide excellent yield, provide diversification, and provide a solid strategy to add to the investor’s
portfolio. The investment manager has a long track record lending in this commercial space. Unlike
traditional bonds, these assets may be less susceptible to price volatility associated with interest rate risk. In
addition, the duration of the portfolio is very short, given most loans are 36 month or less. Most loans are
asset backed which means the collateral of the loan is tangible and the foreclosure process is much shorter
than a corporate foreclosure. In addition, the yield available to investors may be significantly greater than a
5 year or 10 year corporate bond.
strategy
ASSET CLASS
OBJECTIVE
DESCRIPTION
PRIVATE DEBT
Asset Backed Loans
Income
Investor capital provides the base for commercial loans for private real estate (acquiring real property for
development), equipment leasing, and inventory flooring (loans for inventory acquisition). Loans are made to
high-quality borrowers; the firm’s underwriting and credit analysis is central to the lending processes. Loans
are backed by hard assets (real estate or equipment) that can be foreclosed upon and liquidated to protect the
investment. Loans are structured as short-term bridge financing. In exchange for access to capital and quick
underwriting, the borrower may typically pay an interest rate in the 10% – 15% range.
WHY
LOAN DURATION
60%-80% 6-36 MONTHS
LOAN-TO-VALUE TARGET RATIOS
Acting as a “private mortgage bank”, the investment manager has a ten year track record of successfully
lending at competitive interest rates. Client capital is spread across a large asset pool. The fund pays a
monthly distribution and, given the short-term loan structure, the portfolio is relatively liquid and may be a
hedge against interest rate risk and duration risk.
WHY
strategy
PRIVATE DEBT
ASSET CLASS
OBJECTIVE
DESCRIPTION
Real Estate Loans
Income
The investment manager provides reliable private loans for investor-owned residential and commercial real
estate. Funding enables borrowers to move forward quickly and confidently acquiring, improving, and selling
investment property. The investment manager specializes in underwriting and funding asset-backed loans to
experienced individuals whose intention is to improve and sell the property in a short period of time.
The investment manager has strict lending and underwriting standards which enable the manager to quickly
analyze a property and execute a loan. The manager lends money to residential and commercial property
investors in Arizona, Texas, Utah, and California. Loans are short term, 6 to 12 months. The interest rate is
typically 10%-12%, with an average loan near $300,000 and a target loan-to-value ratio of 70%.
Investor Loans on Single
Family Residential Property
When you provide basic borrower and property
information we underwrite the property and
respond to your loan request within 24
hours.
We use market based securities (e.g. S&P 500 index) for capital appreciation and liquidity. Equity securities
provide a defense against inflation over a long-term time horizon. We diversify your equity portfolio across
industry, sector, and global region. We invest based on intermediate to long-term trends. We do not
subscribe to the “just buy and hold” philosophy, we believe certain markets may be more attractive than
others at any given time.
WHY
strategy
GLOBAL EQUITIES
ASSET CLASS
OBJECTIVE
DESCRIPTION
Public Equities: US Large Cap, US Small Cap, US Micro Cap, International and Emerging Markets
Growth and income using value and or growth styles in domestic and foreign equities
This allocation represents equity ownership in well over 1,000 large, mid, and small capitalization
companies across the globe. These securities provide growth through long-term capital appreciation
and income through dividend distributions.
CAPITAL MARKETS HAVE REWARDED LONG-TERM INVESTORS
GROWTH OF $1. USD, JAN. 1926 – DEC. 2018
1926 2018
US INFLATION: $14
TREASURY BOND: $21
LONG-TERM GOVERNMENT
BONDS: $142
US LARGE CAP: $7.025
US SMALL CAP: $20,445
GROWTH OF A DOLLAR
$1.
SOURCE: DIMENSIONAL FUND ADVISORS
Given today’s historically low rates, it is increasingly important to think outside the box of traditional municipal
and corporate bonds. Fixed income investments tend to move independently of the equity markets and
non-standard assets. Bonds may help to buoy a portfolio during periods of high equity market volatility.
WHY
strategy
FIXED INCOME
ASSET CLASS
OBJECTIVE
DESCRIPTION
Public Debt: Municipal Bonds, Corporate Bonds, High Yield Bonds, Asset Backed Loans,
Commercial Debt, Preferred Equities
Income and preservation of wealth
Our fixed income strategy is designed to deliver high total return through investing in a wide range of debt
securities. We employ a top-down approach to help identify favorable market sectors and return potential given
the current economic environment. The fixed income investments we employ may include the following:
• Municipal Bonds • Asset Backed Loans
• Corporate Bonds • Commercial Debt
• High Yield Bonds • Preferred Equities
MANAGING INTEREST RATE CYCLES
7
6
5
4
3
2
1
0
2002 2004 2006 2008 2010 2012 2014 2016 2018
PERCENT
FRED Effective Federal Funds Rate
Source: Board of Governors of the Federal Reserve System (US) / fred.stlouisfed.org