Southridge Capital Take on the Intersection the Boosting American Entrepreneurship During Trump’s Beaming Economy

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American economy is thriving under the current Presidency. The unemployment rate is at a strikingly low 3.9 percent, with the unexpected hiring boom coming mainly from the return of factory jobs. Manufacturing is growing, with 37,000 added manufacturing jobs in July of this year alone. Overall figures for April and May are a boasting 224,000 added jobs, while June brought another 157,000 openings. The manufacturing sector has added a total of 300,000 over the last twelve months. The economy is strong, with the DOW continuing its record run that has been on a steady climb since January of 2017. Also, an estimated three million Americans are awaiting bonuses due to the tax cuts and even more will see increases in pay. Add to that the fact that millions of Americans have dropped food stamp enrollment, and it is safe to say that the Nation’s economy is beaming. It is also safe to say that by doing so it is setting an example for the rest of the world. Now more than ever, the American entrepreneur could benefit from diversified financial holding companies such as Southridge Capital to increase their company’s odds of success that much more.

President Trump’s current term is from 2017 – 2021. A Republican, he is the 45th United States President. The focus of his economic plan is to “make America great again.” His current approval rating is 51 percent following a six-point surge. Only 36 percent of Americans are disapproving of the President, which is following a six-point drop in March of this year. These latest approval results were gathered via the CNBC All-America Economic Survey. In addition to more than half of Americans approving the president, an estimated 54 percent Americans feel that the economy is either good or excellent, which is the highest recorded percentage by CNBC in the last decade of the survey. The survey also highlights that the recent immigration headlines did not affect the President’s ratings. The upward scale of President Trump’ approval ratings is in part due to the fact that he has undoubtedly stayed true to his promise to take steps toward enhancing America’s economy. This has affected all areas of economy, and in particular the technology sector. Since his election into office, 40 major job announcements were made and plans of an additional more than 250,000 U.S. jobs are in the works. The President has also highlighted that an example of this is Apple announcing its $350 billion investment into America’s economy as well as its plans to create 20,000 jobs.

Overall, there is no doubt in President Trump’s incentive and involvement in the aforementioned job market improvements as well as economic growth.

Along those lines, the economic upswing and an improved business ecosystem driving entrepreneurship means more companies will be formed and thus more entrepreneurs could benefit from financial advising services that can offer financial solutions that are particularly powerful during a business’ beginning stages. Southridge Capital is one such company can help public company owners reach financial fulfillment as its mission is to offer financial solutions to public companies. The team at Southridge is cognizant of their clients’ many different needs, and it focuses on finding innovative ways to address them with dedication as well as diligence. This is particularly true during the current presidency that is all about adding jobs while at the same time making the lives of American entrepreneurs much easier.

Let us go back to the President and his actions once more. Three reasons have been proposed as to why the tech industry is creating jobs and President Trump is to be credited. These are (1) Cutting rules, (2) Tax reform, and (3) Bully pulpit.

In terms of cutting rules, the President has put a stop to more than 400 cumbersome rules ever since he took the oath of office and thus demonstrated that the government is siding with both business growth and job creation. The focus is on its responsibility to ensure a clean environment and safety in the workplace along with minimizing and/or completely eliminating cumbersome rules and procedures. Overall, the move makes the lives of American entrepreneurs much easier as they do not experience the difficulties of prior rules and they are no longer experiencing financial strains as they do not have to hire lawyers. All of this results in innovators and manufacturers being able to establish more companies and create new jobs. Overall, President Trump has made it so that the federal government is doing all it can to support American entrepreneurs as they give rise to new innovations as well as jobs.

Furthermore, he President’s enactment of the tax reform has been well received by the tax community. The effect of the historic tax legislation that Trump placed on the stock markets is already evident, and it is only a matter of time until enterprises of all sizes feel the benefits as well. These are prognosticated to be largely twofold: while large multinational corporations have already begun to create more job opportunities in the US, small enterprises will be much abler to create as well as maintain their business. Overall, this will result in the domestic economy as well as innovation seeing an increase in investment.

Lastly, the Bully pulpit rule that has been enforced by President Trump has eased many burdens for CEOs across the nation as he has given them the opportunity to reconsider the meaning of responsible leadership. They are no longer weighed down by the former definition of morality being one of legality as well as the complexity of rules that are associated with it. Entrepreneurs can now focus on how they can promote good via their brand, voice as well as platform. They essentially have the right to speak up when they believe the federal government is not acting in favor of the economy and the nation, which is a powerful way to foster more of a conversation rather than just a monologue between the government and the business sectors.

Taking into consideration the aforementioned, the importance of companies like Southridge becomes even more apparent. At a time when the voices of enterprises have so much power to be heard within the world of politics, it is even more important for them to have the best financial advising support they can get.

Southridge’s success in offering a full spectrum of innovative financial solutions while serving its diverse repertoire of clients is in large part due to its leadership. The company prides itself on its core executive team that has a deep and intuitive understanding of the marketplace as well as its expertise in curating as well as tirelessly and unfailingly executing financing plans for clients. A group of highly competent and professional executives that possess advanced skills and an in-depth understanding as well as intuition of the field makes sure their clients receive all the help they need. Southridge is unique as it has a team that has worked together for over two decades. This not only highlights an automatic strong sense of teamwork, but also experience doing what they are doing during several presidential terms. The Southridge team has guided clients for over two decades, which means they not only have the expertise, but also the experience to adjust to different political climates.

Furthermore, the team has directly invested a total of $1.8 billion into growing companies globally since 1996. Having financed over 250 public companies, Southridge is aware of the concerns that every growing company faces, and the team has the skills and expertise to consult on most corporate issues starting from becoming a public company, to individualized financing techniques to optimized balance sheet management.

Five people make up the management team of Southridge. Stephen M. Hicks is the Founder and CEO who founded the company in 1996. He has been actively involved in the investment sector for over 30 years. His many varied fields of expertise include financial structuring, derivatives, risk arbitrage and investment banking. Among other members of the Southridge team are Narine Persaud who is the Controller and CFO. She has been with the company for over a decade, and her responsibilities include fund accounting and cash management. She joined Southridge following several executive roles at other reputable firms. Laurence J. Ditkoff, CFA, CPA is the Director of Research, who has been with Southridge since 2000. His responsibilities include investment evaluation and selection, due diligence and transaction structuring. Furthermore, Henry B. Sargent, JD, CFA is the COO and General Counsel who has been with the firm since 1998. He is responsible for investment selection, deal structuring and monitoring, workouts as well as reorganization. Lastly, Linda Carlsen is a member of the portfolio management team, and she is responsible for portfolio management and administration as well as supporting the marketing efforts of the team. She originally joined Southridge in 2006 working within the company’s broker/dealer as well as Asset Management groups, where she held her Series 7 and 79 licenses.

The services the Southridge offers to its clients are twofold, namely advisory and structured finance.

Under the advisory umbrella, Southridge offers services that cover all the bases. This includes Financial Analysis, whereby the company designs highly detailed, projected financial statements that are in line with financial and operational assumptions. The firm also offers Balance Sheet Optimization, which is based on helping companies maintain an appropriate balance between debt and equity as well as access to mechanisms that will yield desired results. Southridge’s services in regards to Mergers and Acquisitions procedures entail access to merger candidates whose business models are aligned well with an existing portfolio client. In terms of Restructuring Analysis, Southridge helps their companies take the best actions for the best restructuring outcomes. Bankruptcy Advice entails negotiations as well as structuring to help companies emerge from bankruptcy. Finally, Southridge’s Legal Settlement services are focused on helping with settling litigation by clearly defining all of the legal requirements and minimizing both time and expenses incurred by its clients.

Southridge’s structured finance aspect of services entails Securitization, Credit Enhancing, and Financing Solutions. The team at Southridge is aware of the fact that companies that are in need of financing do not take advantage of all of the opportunities they may have. As part of its “outside the box” thinking, one of the Securitization solutions that Southridge offers is monetization of a company’s existing asset base via loans against insider shares, capital or an array of other assets. Furthermore, Southridge collaborates with companies’ creditors directly as means to eliminate debt in favor of common stock and as such helps companies increase their creditworthiness. The Southridge structure is implemented based on the existing level of liquidity in the company’s stock, without the need of a registration statement and minimal market impact – this benefits companies. Southridge also takes care of its portfolio companies when it comes to fiscal issues, buy curating solutions in accordance with the contexts. Southridge also offers their Equity Purchase Agreement (EPA) that enables companies to raise capital based on their wishes and desires alone, regardless of the market conditions. Loans against common stock, convertible debentures and convertible preferred stock are some of the other products that Southridge offers its clients.

In addition to the powerful team, the success of Southridge is also in part due to their loyalty toward their clients as well as the quality of services they deliver. Southridge views every client as a stakeholder, which is why they focus on fostering lasting working relationships. Furthermore, Southridge prioritizes customer service that is of highest quality, and as such the company demonstrates to their clients that they will do all they can to meet their needs. This has resulted in Southridge having maintained many long term clients while still attracting new ones.

There is no doubt that politics has always influenced the industry and economy sectors – however, the two have never been as affected as under President Trump’s administration. This is particularly evident in the power of the President’s twitter messages. One of his tweets has enough power to swerve markets one way or another. This, in turn, has changed the behavior of the American entrepreneur. Now more than ever, companies are becoming politically involved in ways that they would not have otherwise. At the same time, they are taking into consideration the needs, desires as well as interests of the demographics and groups they serve.

Given the ways in which the President has helped push the American economy as well as the job market forward, it is clear to see how Southridge Capital aligns with all of it to help well established as well as freshly formed businesses with their newly acquired rights and broadened powers within the political sector.

In addition to helping businesses thrive, Southridge Capital is also focused on making a positive change within the communities they serve. The Southridge team is involved in both formal and informal philanthropy, and as such the company demonstrates that it is cognizant of and nurtures its social responsibility. Southridge promotes volunteer work, community leadership and giving. These are examples of the team’s beliefs that those are ways to improve, strengthen the firm and to have a positive impact not just on communities but also society at large. As such, the company focuses on endeavors that provide support and strength for fellow citizens as well as enhance efforts carried out by non-profit organization and faith-based charities nationwide. Together with his wife Mary, Stephen Hicks began the Daystar Foundation that supports several charitable organizations. Both dedicate time as well as monetary resources to the improvement of our society as ways to make a direct impact and difference in the lives of those in need.

Together with the Daystar Foundation, Southridge has provided financial support for several organizations including the LounsBury House, the Ridgefield Fountain Landmark, Bradford Peterson Memorial Scholarship Fund, Eric B. Huss Memorial Scholarship Fund, the Ridgefield Community Center, Western Connecticut Health Network Foundation/Danbury Hospital, the Ridgefield Visiting Nurses Association, Save a Child’s Heart Foundation, Walnut Community Hill Church, Christ and St. Stephen’s Episcopal Church (NYC), the Bridgeport Rescue Mission, Beit Issie Shapiro Organization and the Ridgefield Sunrise Cottage, to name just a few. According to Hicks’s statement on the company website, “Through the Daystar Foundation, Southridge has been committed to charitable giving for decades. Supporting meaningful causes is not only a personal mission that we find extremely fulfilling, but also a corporate and social responsibility. We hope to make a significant impact in people’s lives and offer an example of what giving back can accomplish.”

Overall, it is more than clear that the Trump administration has been focused on not just improving the American economic ecosystem, but making it the best it has been in a long time. The abundance of jobs points to the many businesses that are doing well, and those, in turn, point to the fact that they could benefit from the services of diversified financial holding companies such as Southridge Capital whose primary focus is to devise a plan and execute without fail. Overall, given the current positive economic climate, who would not want to increase their odds of entrepreneurial success as much as they can?

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