Covert announced today the launch of Strandview Capital. Based in Los Angeles, Strandview Capital
has established the Strandview Growth Fund to provide growth equity capital to rapidly growing
companies in the financial services sector. The fund will be the fourth private equity fund that Mr.
Sekits has co-founded. Together, Mr. Sekits and Mr. Covert have over 50 years of combined
experience in private equity investing, investment banking, and founding and operating four prior
financial services companies.
Strandview Capital has made its first investment into InSellerate, a CRM mortgage technology provider,
and is proactively seeking additional investment opportunities in mortgage services, specialty insurance
and other niche financial services.
“We are following the same investing formula that I have used successfully over the past decade,” says
Mr. Sekits. “We provide growth capital to early stage companies with seasoned management teams
from within the financial service industry that are poised for rapid growth with established products and
revenue. As with my previous funds, we are cautious about the current economic environment and
often take a contrarian approach by investing in companies that should perform well in an economic
downturn.”
From 2006-2015, Mr. Sekits co-founded and managed three private equity funds aggregating $250
million for Jacobs Asset Management, where he was instrumental in developing and executing
investment strategies in industry sectors such as mortgage and management of distressed assets. Mr.
Sekits has been a highly proactive board member for nine companies which, at their peak, generated
over $400 million in aggregate revenues, managed $3.5 billion in assets and employed approximately
4,500 people. From 1999-2006, Mr. Sekits founded and built Sekits Capital, a merchant bank which
provided capital and strategic consulting to financial and consumer businesses. Previously, Mr. Sekits
worked in the financial institutions’ group at Bear Stearns and at private equity firm The Shansby Group
(now TSG Consumer Partners).
Mr. Covert is a veteran investment banker and entrepreneur who has co-founded and built two financial
services companies. He has extensive “hands-on” experience providing strategic advice and financial
services to early stage private companies. In 1999, Mr. Covert co-founded merchant bank Montgomery
& Co., which he helped build over 10 years into one of the leading Southern California investment
banks of its time. From 2009-2015, Mr. Covert launched and built Covert & Co., an investment bank
which provided equity financing and M&A services to early stage and public companies. Previously,
Mr. Covert was an investment banker at Credit Suisse and Salomon Brothers (now Citigroup) and
received his MBA from Stanford.
When asked how Strandview Capital differentiates itself, Mr. Covert answered, “We see a major gap in
the market between early stage venture capital and later stage private equity and are differentiated by
deep financial services industry expertise, growth equity stage focus, a highly proactive, hands-on
approach to building companies, and a long-term established presence in Southern California. Ideally,
we invest in companies where we are the last or near last capital into the business.”
The Strandview Capital team believes the financial services industry is a large and attractive market
that is undergoing dramatic change driven by regulatory change, a securitization/funding market in flux
and technology innovation. Technology tools can now substantially change how financial assets are
originated, processed and serviced, resulting in significant efficiencies and potentially meaningful shifts
in market share. These industry dynamics may benefit smaller more agile companies versus larger
participants.
The Strandview Capital team also believes that, while much attention is given to “the next big thing” and
the millennial demographic, there is a large, often overlooked opportunity to serve the aging
demographic which has significantly more financial resources and a greater need for financial services.
In the US, over 10,000 people per day turn age 62 and senior citizens now control over $1.0 trillion in
assets. Furthermore, the number of Americans aged 65 and older is projected to increase from 48
million in 2016 to 88 million by 2050, and yet few financial companies are actively courting these
customers. Mr. Sekits previously invested in five highly successful companies serving this aging
demographic and sees opportunities to replicate that success.
“Kevin and I are thrilled to join forces through Strandview Capital,” said Mr. Sekits. “The opportunity to
provide growth capital to smaller participants in niche financial markets has never been more attractive.
Our expertise in working with high growth companies and understanding of how technology can best be
applied to the financial services sector is a winning combination.” Sekits concluded by saying, “The
management teams we meet greatly appreciate Strandview Capital’s focused approach and experience
within financial services, which provides us with a significant competitive advantage in identifying,
negotiating and managing investment opportunities.”
About Strandview Capital
Strandview Capital is a private equity firm providing growth capital to rapidly growing companies in the
financial services sector. The company founders are Mike Sekits and Kevin Covert, two Industry
veterans with a combined 50 years of experience in the financial services and technology sectors.
Strandview Capital is following the same investment strategy employed by Mike Sekits in three
successful funds he previously co-founded: namely, financial services focus, lead investor role, and
active “hands-on” approach to building partner companies.