Capital Engine

Private market investments have boomed over the past decade. Already large at $25 trillion, the market is on pace to more than double in size by 2032 to $65 trillion.

A primary driver of this growth is the increased participation of individual, high net-worth retail investors in alternative investments.

Estimates point to $14 trillion of new capital entering the private markets over the next several years, with over $7 trillion coming from individual investors.

In this conversation, Will Green, Bryan Smith and Warren Wheatley discuss the evolution of Africa Bitcoin Corporation, formerly known as Altvest Capital.

They explore the company's vision of democratizing access to alternative investments in Africa through Bitcoin treasury management.

The discussion highlights the potential of Bitcoin as a financial tool for small and medium enterprises (SMEs) in Africa, addressing the high cost of borrowing and the regulatory landscape surrounding cryptocurrency investments.

The conversation also touches on the shift from equity to debt funding, the future of pension funds in relation to Bitcoin, and the broader implications of Bitcoin on African economies and global financial systems.

Takeaways

• The vision of Africa Bitcoin Corporation is to democratize access to alternative investments in Africa.

• Bitcoin's unique attributes allow it to serve as a strong balance sheet asset.

• The cost of borrowing for SMEs in Africa is significantly high, often reaching 20% per month.

• Using Bitcoin as collateral can lower borrowing costs for SMEs.

• Regulatory frameworks are evolving to accommodate cryptocurrency investments.

• The shift from equity to debt funding is a growing trend in the financial landscape.

• Pension funds in South Africa currently face restrictions on direct investment in crypto assets.

In this episode we chat with Nicholas Crawley, CEO of Imolott Hotels. He shares his extensive journey in the hospitality industry, detailing his deep experiences from managing prestigious hotels to his current venture with the Norfolk Arms Hotel. He discusses the unique operating model of Imolott, the intricacies of hotel investment, and the importance of blending commercial and leisure aspects in hotel management. Nicholas also reflects on market trends, the impact of COVID-19, and the future of boutique hotels in the evolving landscape of the hospitality sector.

Takeaways

• Nicholas has a rich background in hospitality over 47 years, starting with the Savoy Group.
• The Norfolk Arms Hotel is a historic Georgian coaching inn with a unique charm.
• Nicholas emphasizes the importance of character in hotels. He prefers boutique hotels over standardized branded ones.
• Investing in boutique hotels can yield high returns if managed well.
• Nicholas targets a yield of 12-14% in hotel investments.
• Outsourcing certain business functions can streamline operations.
• The hotel market is competitive, but opportunities exist in unique locations.
• Nicholas aims for a balance between corporate and leisure clientele in hotels.
• Investment in hotels requires careful consideration of location and market trends.
• Nicholas is optimistic about the future of the hotel industry post-COVID, with occupancy rates returning to pre-pandemic levels.
• Nicholas plans to acquire more boutique hotels in the future.

Sound Bites

• "I like hotels with character."
• "We're looking for value for money."
• "We're looking at acquiring more boutique hotels."
• "The profit is made out of the room."
• “There's a lot of potential in the upscale market."

Chapters

00:00 Introduction to Nicholas Corley and His Journey

06:52 The Formation and Vision of Imolart

09:27 Investment Insights in the Hotel Industry

14:59 Exploring the Norfolk Arms Hotel

20:48 Market Trends and Future Plans

25:20 Conclusion and Reflections on the Journey

In this conversation we chat with Andrew Schreiber, from S-AINT. We discuss his extensive experience in alternative investments, focusing on private equity and private debt.

Andrew emphasizes the importance of transparency, education, and personal relationships in the investment process.

Our discussion covers the growth of private credit, unique investment opportunities such as whisky and litigation funding, and the democratization of alternative investments. Andrew also shares insights on evaluating investment opportunities and the role of Capital Engine in providing access to these markets.

Key Takeaways

• Alternative investments provide transparency and security.
• Education is crucial for investor confidence.
• Investors are first in line for payouts in private debt.
• Whisky cask investing is a growing market.
• Litigation funding offers secure investment opportunities.
• Diversification is key in investment portfolios.
• Younger investors tend to take more risks.
• Alternative investments can provide predictable cash flows.
• Personal relationships enhance investment success.
• Capital Engine helps democratize access to investments.

Chapters

00:00 Introduction to Alternative Investments

02:58 The Shift to Transparency in Wealth Management

07:07 Understanding the State of Private Markets

11:03 Assessing Investment Opportunities

14:09 Exploring Unique Alternative Investments

19:25 Portfolio Structuring for Different Age Groups

21:31 Lessons from Successes and Failures

24:25 The Democratization of Alternative Investments

32:13 New Chapter

32:28 The Role of Technology in Fundraising

Michael Markowski shares his extensive experience in market analysis, focusing on defensive growth strategies during declining markets. He discusses the development of algorithms for predicting market crashes, highlights case studies of significant market events, and emphasizes the importance of investing in high-growth companies.

Markowski also explores historical economic transformations and their impact on wealth creation, providing insights into navigating secular bear markets and the future of private market assets.

Takeaways:

• Michael Markowski has over 47 years of market experience.
• Defensive growth strategies are essential in declining markets.
• Algorithms can predict market crashes based on historical data.
• Case studies like Enron illustrate the importance of research.
• Investing in high-growth companies can yield significant returns.
• Historical transformations have shaped economic growth patterns.
• Understanding secular bulls and bears is crucial for investors.
• Bonds and hedge funds are safer bets during secular bear markets.
• Small companies can thrive even in downturns.
• Private market assets are projected to grow significantly in the coming years.

Soundbites:

• "You want to have a very defensive portfolio."

For more information visit: https://capitalengine.io

Legal Disclaimer:

This podcast content is intended for informational purposes only and should not be construed as an offer, solicitation, or recommendation to buy or sell securities, or any other financial instruments. The information provided in this podcast content is based on publicly available information, internal analysis, and opinions, which may change without notice.

Investing in securities involves risks, including the potential loss of principal. Past performance is not indicative of future results. We advise all listeners to consult with a licensed financial advisor or legal professional before making any investment decisions.

The opinions expressed are those of the speakers and do not necessarily reflect the views of the company, its affiliates, or any other related parties. The company and its affiliates do not assume liability for any losses or damages resulting from the use of this information.

Listeners should be aware that the laws and regulations regarding financial products and investments vary by jurisdiction. This content may not be suitable for all audiences and is not intended for distribution in any jurisdiction where such distribution would be prohibited by law.

Welcome to 'In the Engine Room' by Capital Engine

In this episode we speak to founder & CEO of Capital Engine, Bryan Smith.

CapitalEngine.io is a cutting-edge platform revolutionizing the way private capital is raised and managed. They empower businesses and investors with robust tools for online deal syndication, investor management, and capital raising, streamlining the process from start to finish. Their platform provides a seamless experience for accessing and managing investment opportunities, catering to a global audience of entrepreneurs, venture capitalists, and family offices. CapitalEngine.io is transforming the landscape of private markets by making capital raising more efficient, transparent, and accessible.

For more information visit www.capitalengine.io

Summary:

Bryan Smith, the founder of Capital Engine, discusses his background and the journey of building the platform. He explains how the Jobs Act changed the rules and regulations around raising capital in the US, leading to the opportunity to build the first real estate online investment platform. Smith highlights the challenges of dealing with compliance and regulations in different countries and the importance of governance and compliance in the financial industry. He also discusses the vision for Capital Engine and the potential of blockchain and AI in revolutionizing the capital raising and investor management process.

Key Takeaways:

• The Jobs Act changed the rules and regulations around raising capital in the US, allowing for crowdfunding and democratizing the process.
• Compliance and regulations are crucial in the financial industry, and Capital Engine helps clients navigate these requirements.
• The private markets are a large and growing asset class, with opportunities for diversification and higher returns.
• Blockchain and AI have the potential to revolutionize the capital raising and investor management process.
• Capital Engine aims to be a leading platform in the private markets, providing technology solutions for capital raising and secondary market trading.
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Sound Bites:

"Over $500 million worth of capital has been raised on our platform for clients."

"The private markets are three and a half times larger than the public markets."

"We were one of the original pioneers of crowdfunding in real estate crowdfunding"

"When you are dealing with money, you need to make sure you are working with a partner that has got all your governance and compliance covered”.

Legal Disclaimer:

This podcast content is intended for informational purposes only and should not be construed as an offer, solicitation, or recommendation to buy or sell securities, or any other financial instruments. The information provided in this podcast content is based on publicly available information, internal analysis, and opinions, which may change without notice.

Investing in securities involves risks, including the potential loss of principal. Past performance is not indicative of future results. We advise all listeners to consult with a licensed financial advisor or legal professional before making any investment decisions.

The opinions expressed are those of the speakers and do not necessarily reflect the views of the company, its affiliates, or any other related parties. The company and its affiliates do not assume liability for any losses or damages resulting from the use of this information.

Listeners should be aware that the laws and regulations regarding financial products and investments vary by jurisdiction. This content may not be suitable for all audiences and is not intended for distribution in any jurisdiction where such distribution would be prohibited by law.