Paradigm Capital was formed in 1996 as a financial advisory firm principally focused on private companies seeking to raise capital in the institutional capital markets. Paradigm believes that private companies are frequently not fully prepared to effectively access capital from institutional investors. As a result, companies may not raise sufficient capital or capital that is structured for the issuer’s needs to meet longer-term growth objectives and strategic initiatives. Paradigm acts as a strategic conduit between companies seeking to gain access to the private capital markets and the more than 1200 private equity funds that have wide ranging investment criteria.

Paradigm’s Role as Strategic Advisor

The premise behind Paradigm Capital is that most early stage, growth companies need financial advisory assistance prior to seeking capital from institutional investors. Given the high cost of equity capital and the corporate governance issues related to equity, companies benefit from financial advisors that understand the nature of private equity transactions. Through a thorough understanding of a company’s operations and strategic positioning, Paradigm and the company create a long-term partnership that continues beyond the first round of capital raising to subsequent private and public financial transactions.

Paradigm’s involvement begins well in advance of the actual private investment, which benefits both the issuing company and the private equity fund. By adding value at the critical stages of the issuer’s development, Paradigm is strategically positioned to maximize the value of the transaction for the issuing company and assist private equity funds in identifying transactions that meet their investment criteria. Specifically, Paradigm:

1. Assists the client in developing a detailed operating plan consistent with management’s long and short-term goals and objectives.
2. Creates sophisticated financial models that can accurately manipulate growth and acquisition scenarios under various assumptions.
3. Assists the client in preparing an information memorandum that is sent to private equity funds for their review.
4. Identifies and recruits additional management talent, if necessary, to shore up issuer’s team.
5. Identifies private equity funds or strategic investors which offer the best fit for the investment opportunity
6. Acts as strategic counsel to issuer in dealing with private equity funds to raise capital with the most attractive cost and structure.
7. Assists in the development of an exit strategy that meets the needs of current management and owners as well as the needs of the investment partners.

Paradigm Capital Approach