CAPITAL SECURITIES
About Us
Overview
Lucrum Capital Securities is a private placement broker-dealer that provides comprehensive investment banking services for real assets: private underwriting, brokerage, and structured finance.
Our primary emphasis is on private real estate across the U.S., offering diverse plans and risk profiles, while enhancing experiences for stakeholders ranging from investors to sponsors. We proudly connect our extensive network of investors, including family offices and pension funds, with the ideal operating partners to meet their investment goals.
Our mission is to become a global premier investment platform for alternative assets. With our client-centric approach, transparent fee structure, and versatile industry knowledge, we’re positioned as a trusted partner in the realm of real asset investment banking.
Our Thesis
Lucrum Capital Securities (LCS) envisions a future where the growth of alternative investments, especially in real assets, has the potential to increase over time. We are steadfast in our belief that the expansion of this market, over the upcoming decades, will be fueled by evolving investor preferences seeking diversified portfolios with returns that diverge from traditional asset classes.
Moreover, it is our belief that this expansion of investment activity in the real assets industry will require more sophisticated and scalable capital solutions for investor clients. This is especially the case as the amount of data and information used in real estate and infrastructure markets may increase as a result of increased market efficiency in alternative investing.
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As such, LCS sees a profound opportunity. In the middle of digital age advances and at the beginning of the AI revolution, we aim to harness cutting-edge technology to be nimble, evolving with market shifts and consistently delivering optimal solutions for our clients.
At LCS, we aim to be the leading global platform for alternative investments, leveraging our technological prowess in data science, software engineering, and quantitative modeling. Our strength lies not in niche specialization, but in our operational expertise, enabling us to consistently set new standards across all market levels.
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Our Solutions
Overview
As a private placements broker-dealer, LCS’ investment banking and securities brokerage activities are solely dedicated to underwrite and broker debt and equity offerings for private placement securities.
Service Coverage
Private Placements Underwriting
We represent companies nationwide, pursuing a wide variety of opportunities. Each private placement includes a detailed analysis of the issuer and the investment offering, identification of prospective investors, and ultimately, the timely execution of the transaction.
We primarily help Sponsors for real estate ventures raise capital, on a best-efforts basis, via debt and equity offerings distributed via private placement securities (primarily Reg D 506(b) and 506(c)).
Specifically, we perform the following services:
Deal Structuring - We assist in crafting terms and optimizing the capital structure for upcoming offerings, ensuring alignment with both investor interests and issuer objectives.
Private Placement Memorandum (PPM) Offering Materials - We aid in developing a PPM and its associated offering materials, providing clarity and comprehensive details to potential investors.
Due Diligence - We undertake comprehensive due diligence on issuers and investments for potential offerings, ensuring a thorough assessment of risks and opportunities.
Capital Raising - We raise capital through our extensive investor network and aim to ensure we reach our client’s financing goals.
Private Placements Brokerage
We help Investors allocate capital into suitable, third party private placements that meet their investment goals.
We work with a vast network of issuers and other intermediaries (i.e. syndicators and other broker-dealers) to present a large availability of options for investors who have Equity Placements.
Specifically, we perform the following services:
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Deal Origination - We leverage our network to source deal flow to have a pool of potentially suitable third party offerings.
Issuer and Deal Analysis - We analyze the opportunity and third party issuer in great detail and determine suitability for our investors.
Due Diligence - We undertake comprehensive due diligence on issuers and investments for potential offerings, ensuring a thorough assessment of risks and opportunities.
Deal Negotiation - We negotiate on terms on behalf of our investors to achieve the best allocation deal possible under market conditions.
Structured Finance
We develop customized financing solutions on behalf of Issuers for alternative investment opportunities in real assets. We work across the entire capital stack and leverage our creativity to address our client’s capital needs.
We are also able to aggregate and securitize certain real assets into private placements to provide flexible financing options to Issuers while providing more potentially suitable opportunities for particular investors. We work across the entire capital stack and leverage our creativity to address our client’s capital needs.
LCS strives to optimally balance risk, reward, and liquidity in these highly complicated and esoteric real asset classes. This enables the firm to successfully build efficient capital stacks that meet the goals of LCS’ institutional client base.
We also develop institutional capital structures for non- traditional assets. We do this by creatively structuring and placing equity, debt, and mezzanine capital in a variety of complex assets.
Specifically, we perform the following services:
Deal Structuring - We craft intricate arrangements tailored to each alternative investment in real assets, ensuring they align with both the specific needs of the asset and our institutional client base.
Capital Raising - We excel in procuring funds for intricate real asset classes, offering unique solutions that cater to the multifaceted capital requirements of our clients.
Market Analysis and Research - By delving deep into market trends and comprehensive research, we equip our clients with insights that facilitate informed decision-making in the realm of real assets.
Financial Modeling - Our team creates robust financial models for alternative investment opportunities, capturing the intricacies of each asset and the nuances of the associated capital structures.
Valuation Advisory - Leveraging our expertise in non-traditional assets, we aim to value such assets as accurately as possible, ensuring that the perceived value aligns with market realities and the complexities of the asset in question.
Products Coverage
Private Real Estate
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Multifamily
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Single Family Rentals/Build To Rent
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Affordable Housing
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Student Housing
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Senior Housing
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RV & Manufactured Housing
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Retail
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Urban Retail/Mixed Use
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Net Lease
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Self-Storage
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Hospitality
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Industrial
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Office
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Land/Development
Other Real Assets
Special Real Estate
Infrastructure
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Resorts (e.g. Ski Resorts)
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Farmland
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Timberland
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Sports-Related Real Assets
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Mineral and Royalty Rights
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Renewable Energy (e.g. Solar, Wind, Hydro, etc.)
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Mission Critical Infrastructure (e.g. Data Centers, Hospitals, Power Generation Plants, laboratories, etc.)
Leadership
Edrees Feda, Founder and Sole Owner of Lucrum Capital Securities (LCS), brings a wealth of experience and expertise to his role as Chief Executive Officer (CEO) and Chief Compliance Officer (CCO). As CEO, Edrees is at the helm of all operations and activities across the firm’s real estate investment banking activities, including origination, screening and due diligence, and capital raising for private placement issuers and their offerings. As CCO, Mr. Feda also oversees the firm’s key compliance functions such as advertising review, underwriting, investor suitability, issuer due diligence, records retention, and training of the Firm’s staff.
Edrees Feda
Founder and Managing Principal
Holding a pivotal role at the firm, Edrees’s journey began at a boutique SFR acquisition brokerage, swiftly elevating the firm’s presence from the DC Metropolitan area to a national scale through licensure and client development.
Edrees eventually joined Crowdstreet, one of the largest online syndication platforms of private equity commercial real estate. Contributing to more than around $1 Billion of equity financing as an Associate Real Estate Analyst, Edrees was part of the firm’s Investments team, which is responsible for screening private placement (Reg D 506(b) and 506(c)) offerings from issuers, and also contributed to the firm’s compliance rollout of its broker-dealer operations (Crowdstreet Capital).
Subsequently, Edrees joined M.C. Dean, a multinational government contractor, blending Corporate Development and Family Office roles, to manage M&A activities, real estate portfolios, and VC/PE investments. Concurrently, he consulted for clients such as PPR Capital Management, a real estate private equity fund, leading the implementation of their Commercial Real Estate/Multifamily vertical.
Edrees holds the following Series securities licenses: 7, 79, 57, 24, 27, 3, 4, 63, 65, 99, and SIE.
Daniel Beaton
Financial Operations Principal
Mr. Beaton serves as the Financial Operation Principal (FINOP) of the firm as a FINRA registered Broker Dealer. His duties are mainly surrounding oversight of financial reporting and recordkeeping. He has more than twenty three years of experience as a professional in the securities industry.
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Mr. Beaton has worked for a variety of broker dealers ranging from firms specializing in everything from municipal security underwriting, institutional equity trading, mergers and acquisitions, private placements and third party marketing.
He has extensive experience as a CFO, mastering the regulatory requirements imposed on broker dealers by the Securities and Exchange Commission. This has provided him vast knowledge of the regulatory requirements and security laws and rules broker dealers abide by.
He is the owner and operator of FINOP Consulting, a financial and operations principal outsourcing firm. Prior to this, he was a partner and CFO of Alpha Equity Research, an institutional equity research broker dealer.
Mr. Beaton graduated Magna Cum Laude from the University of New Hampshire, Whittemore School of Business with a degree in Accounting and Finance. He was a member of the Beta Gamma Sigma Society.
Professional Credentials:
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Financial and Operations Principal (Series 27 and 28)
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Operations Professional (Series 99)
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General Securities Principal (Series 24)
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Registered Representative (Series 7 and 63)
FAQS
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What are the advantages and disadvantages of raising capital through a private placement issuance?Private placements offer companies flexibility in negotiating terms, potentially more cost-efficient fundraising due to reduced regulatory requirements, and a quicker way to secure funds while maintaining confidentiality. However, they might restrict firms to a smaller pool of potential investors, pose liquidity concerns for the securities issued, carry a potentially higher cost of capital, and still come with regulatory oversight that demands careful adherence.
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What are the potential benefits and risks of investing in private placement securities with underlying real assets?Investing in such securities can diversify a portfolio, provide potential income streams, and possibly appreciate value with potentially limited correlation to traditional markets. Conversely, these investments might be less liquid, come with higher fees, offer less transparency, be susceptible to market volatility, and face potential regulatory challenges that could impact performance.
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If I am not an accredited investor, can I still invest in private placements?While many private placements are limited to accredited investors due to regulatory guidelines, there are offerings available to non-accredited investors under certain exemptions. For example, Rule 506(b) offerings allow a maximum of 35 non-accredited investors for one individual offering. However, we generally don’t take on non-accredited investors due to complexity and risky nature of private placements. We would onboard such investors under special circumstances, considering factors such as investment experience, financial sophistication, and financial stability. If you're interested in investing in private placements, it's crucial to consult with your financial advisor to understand the available opportunities and associated risks.
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For infrastructure assets, are you able to engage in municipal offerings/underwritings?No, we are not licensed or approved to act as municipal securities underwriters or brokers. By infrastructure assets, we are specifically targeting those that usually are owned by private actors or in some public-private partnership that is absent from municipal securitization.
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What is the firm’s target capital raising range for a single offering?We are capable of assisting capital raising efforts that require a range of $5 million and $50 million of equity or debt financing, depending on the specifics of the offering and issuer. We communicate our capital raising estimates ahead of time after initial screening of the offering and issuer.