When faced with an unpredictable environment, it’s important to focus on the fundamentals for a successful investment strategy. That was the message investment managers and industry insiders shared with more than 250 attendees at the Commerce Street Investment Conference held on Oct. 19, 2017 at The George W. Bush Institute at Southern Methodist University in Dallas.

Dory Wiley, President and CEO at Commerce Street Holdings, welcomed a sold-out crowd to the Commerce Street Investment Conference, which has partnered with SMU for five years.

Reflecting on the state of the economy 30 years after Black Friday, Danielle DiMartino Booth, author of “Fed Up: An Insider’s Take on Why the Federal Reserve is Bad for America” said, “Thirty years later in the wake of one speculative boom and subsequent bust, I’m afraid to say that we have not learned nearly enough. It is not the creation of debt that makes a lasting impact on economic prosperity, rather its investment in the future that promises to retain its value for generations to come.”

A panel discussing real estate investment strategies offered positive retail predictions. Jeff Deweese, President of Lincoln Retail REIT Services at Lincoln Property Company, observed that investing in retail can be opportunistic as long as the fundamentals of the individual property are considered. Sam Gillespie, Senior Director of Invesco Real Estate, explained that successful retailers will have an omni-channel presence. Greg McGowan, Co-founder and Managing Principal of CoastOak Group, pointed to infill redevelopment in Dallas and other Texas markets as a niche play worth getting excited about in 2018.  

A private equity panel, moderated by Bruce Ingram, Partner at Aon plc, included Adam Howarth, Managing Director, Co-Head of Private Equity at Partners Group, Suzanne Kriscunas, Managing Partner at the Riverside Company and W. Kelvin Walker, Managing Director at RLJ Equity Partners. All reported seeing valuations two or three multiple points higher than usual for small and mid-sized companies, a trend that it is pushing firms to sell sooner than expected.

Executive leaders from Commerce Street Holdings also shared their best investing ideas. Eugene Urcan, Managing Director at Commerce Street Capital, advised in investing in public funds that participate in the junior debt/high yield market; Carla Brooks, Managing Director at Commerce Street Investment Management, shared an opportunity to invest in nano and micro-cap financial institutions and George Kirchway, Managing Director at Commerce Street Investment Management, advised investing in industrial warehouses via a limited partnership or joint venture.

Giving the keynote address, John Phelan, Co-Managing Partner and Co-Founder of MSD Capital, L.P., provided insights into investing for family wealth offices.

Daniel Eagan, Director at Hirtle, Callaghan & Co., moderated a panel discussing asset allocation in today’s environment, which included Susan Baxter, Vice President of RBC Wealth Management, Cheryl Alston, Executive Director and CIO of Dallas Employees’ Retirement Fund and Scott Luttrell, Founder of the LCM Group. The panelists agreed that being clear on investment expectations and working with an engaged board are essential. Regarding hedge funds, Luttrell offered, “If we know when the market will stop going straight up and risk management is something that people will pay for, then you’ll see a reemergence of hedge funds.”

When asked if the Fed would raise interest rates, all of the panelists agreed that interest rates would rise. “From a banking view, the economy is strong enough,” Baxter noted.  

Participants on a panel discussing energy, moderated by William Meyer, President of Midland-based Energy Related Properties, agreed that there has been a shift in energy companies to show more capital discipline. James Wicklund, Managing Director at Credit Suisse, explained that international and deep water drilling cannot come back to the U.S. until there are diminishing returns. David Miller, Managing Partner and Founder of EnCap Investments L.P., predicted the supply and demand for oil will start to rebalance over the course of the next few years. “The reason crude oil fell was because of too much supply,” Libby Toudouze, Portfolio Manager of Cushing Asset Management noted. “When we refocus on fundamentals, I think people will recognize that there is real value.”

Wrapping up the conference, John Sitilides, Principal at Trilogy Advisors, LLC, gave a discussion on global risk and geopolitical strategy.

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About Commerce Street Holdings 

Commerce Street Holdings, LLC ("CSH") , headquartered in Dallas, Texas, is a premier investment banking firm serving and investing in financial institutions across the United States since 2007. CSH is comprised of the following entities:

Commerce Street Capital, LLC, (Member FINRA/SIPC) is a broker-dealer whose services include: Mergers & Acquisitions, Recapitalizations, Private Placement of Debt & Equity, Regulatory Advisory, Valuations & Fairness Opinions, Community Bank Capital Markets Services, Small Business Investment Company ("SBIC") Fund Raising, Corporate & Real Estate Finance, Due Diligence Services.

Commerce Street Investment Advisor (“CSIA”), dba Commerce Street Investment Management (“CSIM”), a wholly-owned subsidiary of Commerce Street Holdings LLC, a Texas limited liability company and is an SEC-registered Investment Adviser that provides asset management services for private equity and credit opportunity funds that invest in bank and financial institution related transactions.

This press release is for information purposes only and does not constitute a solicitation or offer by Commerce Street Investment Management to buy or sell any securities, futures, options, foreign exchange or other financial instrument or to provide any investment advice or service.

Commerce Street Capital, LLC (“CSC”) and the Small Business Investor Alliance (“SBIA”) gained two wins for Main Street with the unanimous passage by the U.S. House of Representatives of the Small Business Investment Opportunity Act (H.R. 2333) and the Investing in Main Street Act (H.R. 2364). Both of these bills will strengthen the Small Business Investment Company (“SBIC”) program and increase the amount of capital available for investment into small businesses. With a strong commitment to small businesses and banks, CSC has raised more than $757 million for SBIC funds in seven years.

“Commerce Street has and will continue to serve an instrumental role in working with the SBIA on the bills,” said Bobby Hashaway, Executive Vice President and Chief Operating Officer at CSC. “Many of our banking clients have a strong interest in supporting small business funding by making greater investment commitments to SBICs, but have been constrained by an outdated statutory cap within the Small Business Investment Act of 1958. SBICs are attractive to banks because they offer opportunities for competitive returns, Community Reinvestment Act (CRA) consideration and lending and other banking services.”

SBICs are highly regulated private investment funds that invest exclusively in domestic small businesses, facilitating private investment while operating at a zero-subsidy rate. In 2016, Texas-based businesses that received SBIC financing supported 10,772 employees, and that number is growing. Additionally, SBICs have invested more than $2.9 billion in Texas over the last 10 years.

"We hear this all the time, one of the greatest challenges to small business is capital access. Creating businesses and jobs is a matter for private capital markets, and the SBIC program is a great catalyst for small business investment. The program facilitates private investment while protecting taxpayers – and it’s why this program enjoys overwhelming support in Congress. This program makes it possible for entrepreneurs from all communities to access capital that otherwise would be inaccessible," said Alliance President Brett Palmer.

The Small Business Investment Opportunity Act increases the SBIC individual fund leverage limit from $150 to $175 million. Raising the limit will allow SBIC fund managers to maximize the amount of capital they can deploy into domestic small business.

The Investing in Main Street Act lifts an outdated statutory cap that prevents certain banks and savings associations from investing more into small business via SBICs, while still maintaining proper oversight of bank investments into SBICs. Both bills represent modernizations that will facilitate capital access for small business.

Administered by the Small Business Administration, the SBIC program provides mezzanine debt and equity to lower middle market companies and has a history of job creation since its inception in 1958. CSC offers investments in SBIC funds to institutional investors, including banks, family offices, and high net worth individuals through limited partnerships with select fund management teams.

About Commerce Street Capital

Commerce Street Capital is an investment banking firm serving financial institutions and middle-market companies. They value client collaboration and build long term relationships based on mutual respect, goals and integrity. Their practices include: mergers/acquisitions, debt/equity placements, valuations/fairness opinions, bank capital services, SBIC funds, corporate/real estate finance and regulatory/due diligence services.  (Member FINRA/SIPC)

About the Small Business Investor Alliance (SBIA)

The Small Business Investor Alliance (SBIA) is the premier organization of lower middle market private equity funds and investors. SBIA works on behalf of its members as a tireless advocate for policies that promote competitive markets and robust domestic investment for growing small businesses. SBIA has been playing a pivotal role in promoting the growth and vitality of the private equity industry for over 50 years. For more information, visit www.SBIA.org or call (202) 628-5055.

Commerce Street Capital, LLC (“CSC”), a Dallas-based investment banking firm, is pleased to announce that Annika Cail has joined the firm as Vice President. In this role Cail will manage the process and strategy development for CSC’s Corporate Investment Banking Group, Valuation Practice and Private Equity Team. She will also spearhead efforts to grow the company’s Peak Advisors division, which provides quality retirement plan solutions for clients.

“We are pleased to welcome Annika to the team at Commerce Street,” said Dory Wiley, President and CEO of CSC. “Her deep knowledge of business management for corporate and private equity transactions will be a valuable asset to our clients across multiple areas of our business.”

Prior to joining CSC, Cail was Director of Marketing and Business Development at 24Q, a Dallas-based management consulting company, advising clients on financial, cultural and talent aspects of human capital issues in corporate and private equity transactions. In this role she established a successful track record in corporate strategic advisory services that evaluated and executed client’s options to grow, exit or reposition their business.

Cail serves on the Board of Directors for the World Affairs Council of Dallas/Fort Worth and Lee Park & Arlington Hall Conservancy. She is also on the Leadership Council of the Junior League of Dallas, the Steering Committee of The Cary Council and a member of the Cattle Barons Ball. Cail was selected by Modern Luxury Dallas as one of the 2017 Fresh Faces of Fashion and is a DIFFA Style Council Ambassador.

Cail holds a Bachelor of Arts from The University of Missouri-Kansas City. She is also a registered financial representative and has passed the FINRA Series 7 and Series 66 examinations.

About Commerce Street Capital, LLC 

Commerce Street Capital, LLC, (“”CSC”) (Member FINRA/SIPC) is a premier investment banking firm serving financial institutions and middle-market companies. CSC’s broker/dealer services include: Mergers & Acquisitions, Recapitalizations, Private Placement of Debt & Equity, Regulatory Advisory, Valuations & Fairness Opinions, Community Bank Capital Markets Services, Small Business Investment Company ("SBIC") Fund Raising, Corporate & Real Estate Investment Management and Due Diligence Services.

This press release is for information purposes only and does not constitute a solicitation or offer by Commerce Street Capital, LLC to buy or sell any securities, futures, options, foreign exchange or other financial instrument or to provide any investment advice or service.

The Employee Retirement Security Act (ERISA) emphasizes that responsible retirement plan sponsors must act prudently and solely in the interest of plan participants and beneficiaries when selecting and monitoring service providers and plan investments. These ERISA requirements have created a surge in new business for Commerce Street Peak Advisors (“CSPA”).  

CSPA’s retirement plan solutions include 401(k), 403(b) and 457 programs which address the need for employers to utilize fiduciary investment managers to assist them in meeting new ERISA fiduciary requirements by providing reasonable fees, more transparency and mitigating potential conflicts of interest within the programs. CSPA began offering ERISA compliant retirement solutions to many of its banking clients in 2015. More recently, employers beyond the banking industry also began embracing CSPA’s retirement plan solutions.

“CSPA’s retirement plan advisory business has expanded dramatically over the last year. Our clients currently include law firms and service providers in addition to banks,” said Dory Wiley. “This demand reflects how organizations are taking the ERISA regulations seriously.”

It has been widely reported that multiple lawsuits are being filed on behalf of retirement plan participants against corporations such as Allergan, JC Penny and Starwood. Financial advisory firms such as Aeon Hewitt, Fidelity and New York Life have also been named in suits.

“In addition to reassuring employers that they are compliant with ERISA fiduciary requirements, Peak Advisors’ retirement plan platforms offer comprehensive and cost-effective solutions for 401(k), 403(b) and 457 plans that are professionally managed, risk-based portfolios,” Wiley said. “We are providing unbundled services and thereby offering lower management fees, transparent investment policy programs and better participant education.”

Commerce Street Peak Advisors is acting in the capacity of a 3(21) Investment Consultant and/or a 3(38) Discretionary Investment Manager in offering these retirement solutions. 

About Commerce Street Investment Advisors

Commerce Street Investment Advisor (“CSIA”), dba Commerce Street Peak Advisors (“CSPA”), a wholly-owned subsidiary of Commerce Street Holdings LLC, a Texas limited liability company and SEC-registered. CSPA provides quality, comprehensive, and cost-effective retirement plan solutions for 401(k), 403(b), and 457 plan clients and their employees.

Commerce Street Capital, LLC (“CSC”), a Dallas-based investment banking firm, recently promoted Chris Meadows to Managing Director of the Bank Capital Group. Meadows, who joined CSC in 2013, was previously Senior Vice President of the firm’s Bank Capital Group. This announcement was made today by Dory Wiley, President and CEO of CSC.

“Chris has been a valuable member of the Bank Capital Group at Commerce Street for more than three years and we’re pleased to promote him to the role of Managing Director,” said Wiley. “We’re confident that he will continue to help our clients grow in size, improve efficiency and increase value.”

Meadows, who works out of the firm’s Greensboro, North Carolina-area office, will continue to advise and manage the capital-raising efforts for community banks. He will also work on-site with the banks’ management and directors as well as the communities to which they market.

Meadows has more than 20 years of experience in business management as well as sales management and operations. Prior to joining CSC in 2013, he developed capital-raising experience as Vice President at Community Capital Advisors and served as Senior Vice President with Compass Point Research & Trading. His sales background includes securities and insurance sales with Merrill Lynch and Mass Mutual.

He earned his Bachelor of Arts degree in Economics from Hampden-Sydney College in Virginia, and he studied history and economics at The University of London in England. Meadows holds numerous securities licenses.

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About Commerce Street Capital

Commerce Street Capital, LLC (“CSC”) is a private investment banking firm headquartered in Dallas, Texas. Led by veterans of the banking industry, CSC specializes in investment banking services (mergers and acquisitions, valuations and regulatory issue advising) and bank development (on-site consulting, sales and management of bank capital raises, market assessments and the bank regulatory application process). The firm provides tailored solutions for all or part of a financial institution's business lifecycle. For more information, visit www.commercestreetcapital.com or call 214-545-6800. CSC is a member of FINRA/SIPC.

This press release is for information purposes only and does not constitute a solicitation or offer by Commerce Street Capital, LLC, to buy or sell any securities, futures, options, foreign exchange or other financial instrument or to provide any investment advice or service. The testimonials stated within this press release may not be representative of the experience of other clients. The testimonials stated within this press release are not indicative of future performance or success. The testimonials stated within this press release are not paid testimonials.