The details of our business can be complex but the concept of our model is quite simple: An investor is provided liquidity where liquidity is scarce, and CMG has capital and expertise to accommodate this. In the U.S. today, there are millions of retail investors who have invested hundreds of Billions of investment dollars in securities that have very limited trading options. In other words, if an owner of these types of investments wishes to sell for whatever reason, they typically have very limited, if any, options available to them. On the other side, there are unique investment companies, such as CMG, who specialize in purchasing and managing portfolios of illiquid securities, and have knowledge, capital, time and expertise concerning the ownership of these special investments. A seller's need to cash out of an investment is matched with our knowledge and experience.
Real estate investment trusts
Many Real Estate Investment Trusts (REIT’s) are publicly traded, and listed for trading on national securities markets such as the New York Stock Exchange (NYSE). Such publicly traded REIT shares can be readily bought and sold through a brokerage account. However, there are a variety of private, non-publicly traded REIT’s, often referred to as “Non-traded REIT’s”. Some of the non-traded REIT’s have share redemption programs (SRP’s) that provide good liquidity options for their shareholders. However, many do not have a SRP that is functioning effectively, or at all. REIT SRP’s often become oversubscribed, where there are more shareholders seeking to sell than there are SRP funds available to redeem. CMG can provide liquidity options for shareholders who may be stranded in such a situation.
Real Estate limited partnerships & LLc’s
Most Limited partnerships are not publicly traded. The majority of limited partnership programs were structured in the 1980’s and 90’s, when that form of entity was more popular. Largely, the limited partnership structure was replaced by the non-traded REIT structure. Some private real estate programs are structured as Limited Liability Companies (LLC’s). This is just a different legal structure, where the underlying investment is the same- private real estate. This is another area where investors have limited, if any options to sell their shares. CMG has provided liquidity options for Limited Partnerships and LLC’s for many years. If you’re stuck with such an investment, we can help.
Private company shares
While less frequent in our experience, from time to time we will encounter investors who own shares of a private company, other than real estate or banks. We have been involved in private companies in a wide range of industries including equipment leasing, technology, biotechnology, oil & gas, financial services and telecommunications just to name a few. If you are looking to sell shares in a private company in any industry, we may be able to help you with a solution.
Non-traded community banks
There is a very large number of small banks across America, generally referred to as “Community Banks”. Typically, these are banks that operate in a fairly small geographic area, often with less than 5 branches. Community Banks are almost always formed by means of small private stock offerings sold to investors in that bank’s community, thus the name. Again, these bank stocks are most often not publicly traded. In most cases, the shares can only be bought and sold when interested sellers can be matched to an interested buyer. Sometimes the bank itself helps to coordinate this process. However, due to the small number of shareholders in most community banks, the ability to sell the shares can be limited. CMG has been a buyer of community bank shares for many years. If you have private bank shares that you are looking to sell, we can either provide you with an offer, or if not, we can refer you to alternative sources for non-traded bank shares. We’d like the opportunity to help.