Stang Capital Advisory opens its doors

Former banker to help companies get financing, will advise banks and PE players, too
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Tuesday, May 5, 2015

CHICAGO—David Stang, who led Bank of America’s Security Alarm Group for the past 10 years, this week launched Stang Capital Advisory to assist middle-market companies with financing.

The goal is to help security and RMR-based companies obtain the financing they need “easier, quicker and on better terms,” Stang told Security Systems News.

“Beyond structuring and executing the capital-raising, I can help companies match up how to arrange the dollars, [by finding] the best [combination of] providers,” he added. 

Companies have different needs based on their size and experience with financing, he said. The obstacle for smaller companies is often learning how to go about raising capital. For mid-sized and larger companies, capital-raising and incremental debt can be a time-consuming and a distraction from day-to-day business.

Working on the lending side, Stang said he saw an opportunity to help in all of these situations. Stang Capital Advisory will work on an advisory basis or it could also take over the whole project for security companies that want to outsource capital-raising.

How is a middle-market company defined? Because middle-market companies come in a variety of sizes, it’s easier to define what they’re not, Stang said. “They’re not the large [often-public] companies who have CFOs who raise capital on a regular basis,” he said.

In addition to helping operating companies, Stang Capital Advisory will work with bank- and non-bank lenders and private equity firms on specific deals, with specific companies and to understand more about the security industry.  

Stang said working on the lending side, he’s seen a need for this unique set of services. “What I’m trying to do will be complementary to what other providers in the industry do, whether they’re operating companies, lenders, other advisors or consulting firms.”