Member Profile | Sloane Capital Corp.
Most people are unaware of what the Exempt Market is all about. While banks and large investment houses play a significant role in the Canadian economy, they may have less interest in funding small and medium sized enterprises. As a result many companies must seek alternative means to raise capital. The exempt market is integral to these businesses in order to meet their capital requirements.
The Canadian Securities Administrators estimated the Exempt Market to be over $150 billion in capital raised in 2011, compared to the Public Market, at over $60 billion. Yet, most investors have never even heard of the Exempt Market as a result of generally seeking their investment advice from Banks.
The Exempt Market is an essential component of our capital markets for entrepreneurs, small business, start ups, and investors.
Quickly growing into one of the largest Exempt Market Dealers (EMD) in Canada, Sloane Capital Corp. (Sloane) offers a diverse selection of both income and growth investment opportunities to qualified clients in most Canadian jurisdictions.
“Investors can realize a more balanced portfolio without all of their exposure being in the public markets,” states the President of Sloane Capital Corp., Stephen Freedman. “Qualified investors can diversify their portfolio in a wide variety of asset-backed opportunities from long-term growth in Real Estate, to income producing funds in Mortgages, Structured Finance and Alternative Energy to name just a few exempt market products.”
In fact, Sloane recently received the 2013 Renewable Energy Deal of the Year Award as the Lead Agent for Solar Income Fund. And now, engaged as the Lead Agent for Beacon Trust among other Offerings, Freedman carefully selects the products that the firm represents.
The Role of the Lead Agent
A ‘Syndication’ is a temporary association of Exempt Market Dealers brought together for the purpose of selling securities. One Exempt Market Dealer is selected to act as Lead Agent to manage the syndicate. The Lead Agent collects an Agent or Syndication fee for assembling the syndicate, arranging the distribution of the securities and monitoring compliance.
A fundamental role of the Lead Agent is risk reduction in an effort to promote realization of target investment returns. Thus, The Lead Agent plays a major role in monitoring compliance.
Two aspects of compliance are contractual and regulatory. Contractual compliance refers to all material contracts by which the investment is bound. Regulatory compliance refers primarily to conformity by the investment to comply with relevant securities regulations including National Instrument 45-106. Thus, the Lead Agent must be experienced and knowledgeable when it comes to offering documents and their distribution in various Provinces with their respective securities regulations.
Cutting Edge Technology & Social Media Marketing
In addition to a multitude of investment opportunities, Sloane Capital Corp., as an EMD, strives to be on the cutting edge of technology bringing effective tools to its Dealing Representatives (DR) to help make their job easier. Not only has Sloane implemented a learning management system, it has a customized CRM system which is integrated with personalized DR websites that are mobile friendly and link to various social media platforms such as LinkedIn, Twitter, YOU TUBE and, of course, Facebook Business Pages- which connect events to the corporate website.
“We strive to provide the best tools to our team to help them know their products, support them with sales and marketing, and allow them to focus on their clients’ needs while maintaining a high level of compliance,” says Freedman, a veteran of over 38 years in the investment industry.
With billions of dollars changing hands from Baby-boomer clients to Gen-X and Gen-Y over the coming years, combined with the next generation of self-made millionaires, it is important to understand and create communication platforms that engage across generations and are prepared for this seismic client shift, especially as the new generations are three times more influenced by digital content. Investment companies can no longer ignore digital/social media if they want to maintain brand awareness and client acquisition/retention across multiple generations.
Through social media marketing plans and integrating business development activities, the public will become more aware of the diverse range of alternative investment opportunities available to qualified investors in Canada. The Exempt Market, and Sloane Capital Corp., will continue to receive more positive exposure digitally and socially while providing more support for Dealing Representatives in the industry.