Mitigating Risk in the Merchant Cash Advance Industry: Recognizing and Managing a Looming Threat Apr17

Posted by & filed under Legal, Regulatory, White Papers/ Thought Pieces.

The pursuit of non-correlated, investable, high-returning assets has led private funds to consider ever more esoteric asset classes for possible investment. Merchant cash advance transaction contracts (“MCATs” for short), are one of those receiving the attention of the hedge and private equity industries. MCATs are, in their basic form, an unregulated futures contract for the present purchase of a portion of a merchant’s future receivables. Properly structured, they provide the benefit of discount pricing in the purchase of a financial asset (similar to a factoring arrangement), where that asset — the receivables to be created — does not yet exist

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Fixing Founder Scarcity Apr12

Posted by & filed under White Papers/ Thought Pieces.

The world appears to be suffering from a shortage of entrepreneurs. The main reason is the very risky nature of entrepreneurship: Society pays average founder millions of dollars but pays nothing to the median founder. We could build a financial fix (a founders’ mutual) to ever so slightly reduce this risk. This would move hordes of talent from their safer BigCo jobs into entrepreneurship. It could also give society more innovation per venture dollar risked

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What Gen Z Thinks of Banking (Survey) Apr12

Posted by & filed under Banking, White Papers/ Thought Pieces.

The 2019 Manole Capital interns (from the University of Tampa) just completed our 2nd Annual “Gen Z” financial services survey. The first series of questions and answers discusses the BANKING industry, with a focus on brands, branches and technology. We uncovered some interesting banking trends and the team did some detailed analysis on what is plaguing Wells Fargo

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White Paper: Quantitative Hedge Fund Analysis and the Infinite Monkey Theorem Mar14

Posted by & filed under Hedge Fund Performance, Investing, White Papers/ Thought Pieces.

Some have asserted that monkeys with typewriters, given enough time, could replicate Shakespeare. Don’t take the wager. While other financial denizens sarcastically note that given enough time there will be a few successes out of all the active money managers, building on the concept that even a blind pig will occasionally find a peanut. Alternatively, our goal in the white paper is to more reliably accelerate an investor’s search for sound and safe hedge fund and niche investments

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The Evolution of the Independent Sponsor Mar5

Posted by & filed under Independent Sponsors, White Papers/ Thought Pieces.

In a sector where one broken deal can be financially devastating and one successful liquidity event can set you up for life, the stakes have never been higher. And so this year, based upon responses from over 200 independent sponsors, we have identified “typical” terms and calculations while also finding considerable variation in economic structures. By sharing these data points, both the typical and atypical, it is our hope that independent sponsors and their capital providers will have a greater understanding as to what the market will bear

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