A new Chicago-based investment bank is looking for new investors to tap into its capital premium financing capabilities to help the city compete with a range of other top cities, including New York, Los Angeles, San Francisco, Washington and Boston.
Capital Premium Finance, which is based in Chicago and is one of several financial firms that specialize in capital markets, is building a new fund focused on the investment-grade capital of major cities across the U.S. It has already raised $6 million from investors including hedge fund Elliott Management, which was one of the top-rated financial firms in the world for the third consecutive year.
The Chicago-focused firm is the first in the country to launch a new capital premium fund focused entirely on the U, D.C., metro area.
The fund, which will launch in late September, will be managed by Chicago-area investor Jeff Ruch and his wife, Melissa Ruch, and will focus on citywide and region-specific capital markets.
Ruch said the fund will also have assets that include Chicago-listed companies and other financial institutions.
The Ruchs are looking to raise $10 million in a secondary offering, with an average annual return of 15 percent, to help fund the fund.
The pair have been part of a group of Wall Street veterans who have been helping to build Chicago’s city-wide capital markets portfolio over the past decade.
Chicago is a top choice for investors because of its size, according to Chicago Board of Trade economist Michael Ciminelli, who has led the city’s capital market team for over two decades.
The city is home to about 15 million residents and has become a center for the U-turn of the financial sector in recent years.
The national capital markets have been hurt by the collapse of the global economy and a slowdown in emerging markets, which have been growing at a faster pace than the U., D. C. The global financial system is expected to recover in coming months.
Chicago-specific assets in the capital premium portfolio include a portion of the Chicago Stock Exchange (CSE), which has been a major investor in the city.
Other assets include Chicago’s pension funds and local governments.
The firm has also been looking at other emerging markets.
Chicago and New York are also in the running for a new national capital market fund.
A national capital funds typically focuses on emerging markets and other countries.
But Chicago-oriented capital funds have a larger focus on Chicago than other emerging-market markets.
For example, Chicago has the highest percentage of U. S. companies in the U.-turn.
In 2017, Chicago-centric capital funds earned nearly three times as much as Chicago-only funds, according in the most recent report from the Institute of International Finance, a research organization that tracks capital markets performance.