Brief Overview of Investment Strategy
As the firm invests its own capital in every deal, part of Shepard Capital’s investment thesis is to diversify its holdings across a variety of industries and business models. Shepard Capital Partners portfolio investments include:
MNGH, LLC (d.b.a. “Uown Leasing”) is a Tampa-based company providing “No Credit Needed” lease purchase programs to select furniture and electronics retailers in the United States. Demand for this type of lease purchase program is on the rise, as consumer financing underwriters are increasing credit score thresholds and raising effective interest rates. MNGH currently operates in over 43 states and has served this market since 2008.
In February of 2020, Shepard Capital Partners sold controlling interest in Uown Leasing to a Miami based investment firm. Under the terms of the acquisition, Uown Leasing has combined operations with the firm’s existing lease-to-own product and will continue operate solely under the Uown Leasing name. Shepard Capital Partners retains an ongoing equity investment in the new entity.
o8o Leasing, Inc.
o8o Leasing, Inc. makes entertainment vending machines with 80 mph winds to simulate the experience of being in a hurricane. Shepard Capital Partners has led three rounds of preferred equity investment totaling $4,750,000 since August 2009 to fund the manufacturing and deployment of the company’s hurricane simulator amusement machines throughout the continental United States, Canada, and Europe. The growth capital infusions have allowed the company to achieve economies of scale in manufacturing, reducing capital invested per unit by over 75%, while increasing the number of revenue generating installations over 10 times and returning cash to the investors of greater than 17% per year.
Sun Financial, LLC
Sun Financial, LLC, with its affiliates Bay 4 Energy Solutions and Kenyon Energy, develop, finance, own and manage solar facilities that typically generate between 500 kilowatts and 10 megawatts for Fortune 500 companies, utilities, universities and municipalities. The company lowers energy costs by selling solar energy to its commercial customers at prices below utility rates, and its long-term agreements insulate its customers from rising energy costs, while providing recurring revenue streams for the company. Sun Financial and affiliates currently operate more than 82 facilities in 20 states, which have a rated capacity of over 100 megawatts of power.
The TTI Companies
The TTI Companies, established in 1953, are staffed and equipped to provide complete design, shop fabrication, shipment, field erection, inspection, and testing of welded steel products to their customer’s specific requirements. In June of 2010, Shepard Capital Partners arranged a $10,000,000 senior debt facility and provided the financing structure for a dividend recapitalization and minority equity buy-in by a team of management led by a Shepard principal. The transaction provided liquidity for the company’s legacy shareholders, while facilitating a long term management and ownership transition plan that ensures local ownership of a firm that has been a leading manufacturing employer in the Tampa Bay area for over 50 years.
With a senior management team that collectively has over 60 years of healthcare staffing experience, samstaff is a best of breed healthcare staffing company, focused on Healthcare Information Management (HIM) Coding, Cancer and Trauma Registry, Clinical Documentation Improvement Specialists, Interim Hospital Leadership and Case Management. The company is headquartered in Tampa, Florida.
Commercial Real Estate
The Crossings at Nine Mile
The Crossings at Nine Mile is a 240 unit multi-family apartment community located in Pensacola, Florida and built in 2011. The property offers one bedroom (84 units), two bedroom (120 units) and three bedroom (36 units) apartments for lease. All apartments have stainless steel kitchen appliances, large master bedroom suites, high ceilings and screened porches. Every building at The Crossings has a metal roof, and there is a community clubhouse with a swimming pool, fitness center and internet café. Shepard Capital Partners acquired this property in late 2014.
Crossings of Dawsonville
Crossings of Dawsonville is a 216 unit multi-family apartment community developed in partnership with Homecorp, Inc. in Dawsonville, Georgia. The property offers one bedroom (84 units), two bedroom (92 units) and three bedroom (40 units) apartments for lease. All apartments have stainless steel kitchen appliances, large master bedroom suites, high ceilings and screened porches. Construction was completed in the 4th quarter of 2019.
Catalina Industrial is comprised of two heavy industrial facilities located in Tampa, Florida, which are currently leased by Tampa Tank, Inc. – Florida Structural Steel, a leading steel fabrication company headquartered in Tampa. The Catalina Industrial sites span over 19.5 acres. Shepard Capital Partners acquired these properties in 2016.
In 2017, Shepard Capital Partners completed the installation of a 507-kilowatt solar photovoltaic (PV) system on one of the Catalina Industrial construction bays. At a half a megawatt of electricity, this is currently the largest solar installation for an industrial plant in Hillsborough County and one of the largest in the State of Florida. For more information, please visit: http://www.prweb.com/releases/2017/02/prweb14098491.htm.
Westshore 17 is a three story office building that is centrally located in the Westshore submarket of Tampa Bay and was constructed in 1985. This building offers 23,394 square feet of rentable office space and currently supports six commercial tenants. Shepard Capital Partners acquired this property in 2017.
In November of 2019, Shepard Capital Partners sold Westshore 17 to a local real estate investor. The property was 100% occupied at exit.