In recent years, FINRA has intensified its focus on independent bankers and brokers who deal with private securities.  Put simply, if your compensation depends on whether a deal closes and/or the value of the deal, then you are legally obligated to be licensed with FINRA.  In addition, much of the capital advisory work that was previously treated as non-licensed consulting now falls under FINRA’s ever-increasing purview. 

At the same time, the process of establishing and maintaining your firm as a broker-dealer remains expensive and time-consuming. For small teams that need to keep swimming to stay alive, this drain on your collective brainpower can be a devastating time sink.

We take this burden out of your hands by providing the administrative infrastructure that you need to get licensed and operate in a compliant manner.  By becoming a Registered Representative of our firm, you can legally accept commissions and gear your business to accepting such commissions. 

It is a relationship that requires mutual transparency.  We are obligated to supervise and report on your business activities: the securities you sell, your communications with the public, and the investors with whom you work.   In respect for your time, we make every effort to create a supervisory process that is complete, efficient, and forthright.  Our goal is to alleviate your compliance risks while providing the flexibility and independence that you need to conduct your business.

Coordination

In addition to compliance, which is a “must have,” our firm provides a variety of services that are “nice to have.” 

Private equity research
Your membership includes a subscription to PitchBook, a leading provider of private equity data and analysis tools.  You will find useful features for establishing valuations, researching investors, and building customized target acquisition lists.  Not only that, but PitchBook also makes its own internal research team available for specialized research requests.

E + O insurance
You will receive a seat on our Errors and Omissions insurance policy from Lloyd’s of London, which helps to protect you against inadvertent miscommunications with your clients.  It is extremely difficult to get this policy as a sole practitioner, let alone at a reasonable cost.

Legal templates
Having been in this business for a while, we have a variety of legal contracts available that can be adapted for your use.  These include engagement letters, NDAs, subscription/stock purchase agreements and other forms particular to this business, available for download and discussion as a benefit of membership.

Virtual data rooms
Our virtual data room service provides a secure location to store deal documents online, and invite your clients to view them according to the permission levels that you determine. In addition, the log feature allows you to keep tabs on which of your clients have actually viewed the documents, enabling you to spend more of your time on the most likely prospects.

Exam support
We pay for your exams, and help you to get ready for them.  From selection to scheduling to study guides, we are here to help throughout the preparation process.  We have also arranged for a discount on materials from a leading provider of training programs.

Outsourced analysts
We have a discounted arrangement with an outsourcing firm to conduct research projects for projects as large or as small as you like.  The firm has MBA’s, CPA’s, and PhD’s on call at a fraction of the price you would pay for in-house experts.  In addition, we keep tabs on promising interns and junior associates.  Think of this as bench strength for your analyst team when business is booming.

IT package and technical support
Many a small firm has gotten bogged down in the administrative details of setting up a compliant communications package.  As an affiliate, you will have access to email, website hosting, and sophisticated archiving capabilities that have been set up according to FINRA requirements. We also include smart phone setup and phone-based technical support to cover the preceding items.

We are always looking to improve our service offering, so check in to see what else is in the works.

Collaboration

While a competent compliance regime is a must, and the ancillary services are nice to have, the value that you place on your broker-dealer relationship largely depends on your day-to-day experience with the firm.  We have built Growth Capital Services to be collaborative, under the assumption that our affiliates are the foundation of our business, and only by working closely with your priorities can we create a truly lasting asset.  We expect you to manage your own career objectives, while our job is to provide you with as much support as possible in your endeavors.  Unlike many firms, we offer a dedicated member relations team to handle your issues as they arise. 

Of course, the network we provide goes well beyond our core staff.  As a client of GCS, you join a network of like-minded investment professionals, with whom you may choose to share deals, contacts and ideas.  Some interactions happen in person, through hosted baseball games and happy hours, and others occur online through our in-house social networking system.  Still others arise through referrals that we make based on our understanding of mutual needs.