Middlemarch Capital Partners Closes $17.5M of $20M Gold Financing Fund

Investment strategy exploits a global demand for gold and the ability to consistently source gold at advantaged pricing

June 4, 2019 (New York, NY) – Middlemarch Capital Partners, the registered investment advisor associated with merchant bank Middlemarch Partners, seeks to upsize its MCP Gold LP (“MCP Gold”) Fund, a Special Purpose Vehicle (SPV) that finances the purchase and transport of gold from South America for sale in the Middle East, from its current assets under management of $17.5M to $20M. 

The Principals of Middlemarch Partners began investing in a related gold strategy in 2013 and began offering Limited Partners the opportunity to invest in MCP Gold in 2017. The fund has since inception consistently produced in excess of 20% net returns for its Limited Partners and offers the option of quarterly redemptions to its investors. The fund has a hard cap at $20M, and Middlemarch Capital Partners is currently accepting additional Limited Partners who wish to invest in MCP Gold.

MCP Gold finances the purchases made by a commodities trading firm that buys gold in South America concurrently with a forward contract that has been executed with one of its refining partners in the Middle East. MCP Gold does not speculate on the long-term price of gold as a commodity but rather facilitates trading between regional sellers and institutional buyers of gold. “We believe gold has a very material place in the global economy, and our role as financial services investors is to finance commodities trading strategies. This investment is structured to limit our exposure to gold price volatility,” said Sasha Grutman, a co-founder of Middlemarch Capital Partners.

This investment strategy exploits a global demand for gold and the ability to source relatively small quantities of gold at advantaged pricing. “Our operating partner has established long-standing relationships with gold sellers in South America who value consistent buying behavior and a professional approach to buying gold,” said Demetris Papademetriou, a co-founder of Middlemarch Capital Partners. “We are able to facilitate a consistent gold supply from licensed gold mining operations to buyers in the Middle East who are supplying significant amounts of gold to Asia.”

MCP Gold is currently open to institutional investors and qualified individual investors.

About Middlemarch Capital Partners
Middlemarch Capital Partners is a registered investment advisor associated with New York-based merchant bank Middlemarch Partners. Middlemarch Capital Partners is focused on the alternative finance, payments, trade finance, and financial technology sectors where companies require sophisticated equity and debt investment solutions. The firm designs special purpose investment vehicles that deploy investment capital in venture and growth capital transactions ranging from $5 to $25 million. Its Limited Partners are institutional investors and accredited individual investors. The firm can serve as an independent sponsor of transactions but frequently co-invests in transactions alongside blue-chip lead sponsors that are sourced by merchant bank Middlemarch Partners on behalf of its merchant banking clients. For more information about Middlemarch Capital Partners, LLC please visit www.middlemarchllc.com.

Middlemarch Successfully Secures Majority Equity Investment from Elliott Management for Channel Partners Capital LLC.

New York, NY June 14th, 2018

Middlemarch Securities, the investment banking arm of Middlemarch Partners, LLC (“Middlemarch”) acted as the investment banking advisor to Channel Partners Capital (“Channel”), a leading provider of small business loans. Middlemarch secured a significant equity investment from Funds advised by Elliott Management Corporation (“Elliott”), a private investment firm with approximately $35 billion in assets under management. Concurrent with the growth equity investment, Channel also refinanced its balance sheet with an expandable asset-backed facility led by CIBC Bank USA.

 

Middlemarch advised Channel on its growth strategy, capital needs and executing a complex transaction structure to achieve the goals of multiple stakeholders. Demetris Papademetriou of Middlemarch Partners stated, “After raising over $750 million dollars for a variety of alternative finance companies, we immediately recognized Channel’s strong management, unique customer acquisition strategy and superior performance metrics. Channel’s profile made a compelling investment candidate. With its investment from Elliott and CIBC, Channel is positioned to achieve its near-term goal of $300M in funded working capital loans.” This transaction further solidifies Middlemarch Partners’ role as the advisor of choice in the Alternative Lending sector.

 

Channel, a company providing working capital solutions for small to mid-sized companies through its proprietary network of over 400 equipment leasing partners will use the growth capital to scale its loan originations, operations, and technology platform; enabling more efficient financing for its clients.

 

Brad Peterson, CEO of Channel Partners Capital LCC., stated “This is a major milestone for Channel Partners Capital and we appreciate Middlemarch’s efforts to make it happen. They prepared us to meet many highly qualified investors and guided us through a complex transaction, culminating with finding the right partner to fuel our growth in Elliott Management.”

 

 

About Channel Partners Capital LLC.

Based in Minnetonka, Minn., Channel Partners Capital (“Channel”) is a leading provider of small business loans utilizing customized technology and business processes. Channel delivers loans to small businesses through partnerships with equipment finance companies, helping these companies provide their customers access to capital needed to grow their businesses.

 

Since its founding in 2009, Channel has originated over 7,000 loans generating loan receivables of over $350 million. Channel is one of a limited number of full-service, non-bank, small business lenders successfully filling the gap in small business credit availability.

 

About Elliott Management

Elliott Management Corporation manages two multi-strategy investment funds which combined have approximately $35 billion of assets under management. Its flagship fund, Elliott Associates, L.P., was founded in 1977, making it one of the oldest funds of its kind under continuous management. The Elliott funds’ investors include pension plans, sovereign wealth funds, endowments, foundations, funds-of-funds, high net worth individuals and families, and employees of the firm.

 

About Middlemarch Partners

Middlemarch Partners is a New York, NY based merchant bank that works with companies looking for well-structured and thoughtful solutions to their capital raising, M&A, and strategic partnering needs. Middlemarch is particularly active within the alternative finance, payments, financial technology and business services sectors where companies require sophisticated equity and debt investment solutions. Middlemarch Partners conducts investment banking through Middlemarch Securities, LLC, member FINRA, SIPC.

 

For more information on Middlemarch Partners, LLC please visit www.middlemarchllc.com.

 

Media Contact: Demetris Papademetriou

Phone: 212-913-9660

URL: www.middlemarchllc.com

SOURCE: Middlemarch Partners, LLC

Securities offered through Middlemarch Securities, LLC, Member FINRA, SIPC.