Preferred Capital Securities CEO and President Purchase Firm from Founders
Preferred Capital Securities LLC, an independent managing broker-dealer, has been sold through a management lead buyout.
September 14, 2021 | thediwire.com
Preferred Capital Securities LLC, an independent managing broker-dealer, has been sold via a management buyout. Financial terms of the transaction were not disclosed.
Chief executive officer Jeff Smith and president Eric Graber, through their holding company Badger Creek Holdings LLC, purchased Preferred Capital Securities from the original founders, Dan DuPree, Lenny Silverstein and the late John Williams’ estate.
Preferred Capital Securities focuses on the wholesale distribution of alternative investments to independent broker-dealers and registered investment advisors in the United States and Puerto Rico.
The company currently serves as managing broker-dealer of the preferred stock offerings for Preferred Apartment Communities (NYSE: APTS) and Prospect Capital Management (NASDAQ: PSEC), and as managing broker-dealer of the Priority Income Fund, a non-traded closed-end fund.
Since 2011, Preferred Capital Securities has reportedly raised more than $3 billion in retail capital across eight offerings with more than $1 billion in investor liquidity. The company said that it, along with Preferred Apartment Communities, was the original distributor of non-traded preferred stock to the retail channel.
“Eric and I are honored to continue the legacy that Dan DuPree, Lenny Silverstein and certainly John Williams started with this broker-dealer being a best-in-class distributor,” said Smith. “We can’t thank Dan and Lenny enough for their partnership in getting [Preferred Capital Securities] where it is today. As we seek new issuers to work with, the bar has been set very high and we thank them for always putting the investor first.”
Smith and Graber will continue in their current capacities.
Preferred Capital Securities is an independent entity and wholly owned by Badger Creek Holdings LLC. Previously, the firm was an affiliate of Preferred Apartment Communities, which internalized the functions performed by the manager and submanager in February 2020.
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