Daniels Corporate Advisory Co Inc (DCAC)

[10daytradehailchaser]

Are we seeing this? PCAP? From an article new CFO wrote in 15'



"PCAP combine the traditional and established features of PE with new provisions for investors and managers of the fund. PCAP provide a method to transform a private equity fund that relies on private capital from limited partners into a publicly funded and traded fund that relies on permanent capital raised in the public markets. A PCAP is a publically traded limited liability company formed by a PE management team. In conjunction with an initial public offering, the PCAP acquires controlling interests in operating companies on a diversified or roll up basis in a general industry.

The PCAP structure is highly flexible and provides several distinct advantages over other PE-like structures:

Availability of permanent capital without funding term restrictions.
Direct participation in a perpetual acquisition vehicle that is treated as a publicly traded partnership for tax purposes.
Complete liquidity for investors.
Lower cost of capital.
No regulation under the Investment Company Act or Investment Advisers Act.
Managers also benefit from the customary 2 percent fee and 20 percent profit-sharing structures.
Profits can be passed on to the investors who are investors in a public company.
Various tax advantages to all parties because the fund is a limited liability fund and passes on its income without paying taxes itself. The PCAP generates all of is income from dividends and interest on intercompany debt thereby qualifying the PCAP for flow-through tax treatment for investors.
Perhaps one of the most exciting benefits to come out of this new financing structure is that it can be used as an excellent holding company vehicle where even small and midsize companies can use it to roll-up similar companies. This allows the PCAP to go directly to NASDAQ capital markets, giving the PCAP almost unlimited access to new capital to grow all its subsidiary companies.

It really can become a cash cow roll-up machine!"

http://whartonmagazine.com/blogs/investors-eye-a-new-private-equity-opportunity/?platform=hootsuite