An Interview with the Founder of SPP Capital Partners

Stefan Shaffer is the Founder and Managing Partner of SPP Capital Partners LLC - a New York-based investment bank dedicated exclusively to the US private capital markets. Mr Shaffer also serves as Managing Partner and member of the Investment Committee of SPP Mezzanine Partners, SPP’s direct lending platform.

Previously, he’s served as the President of SPP Hambro, the US subsidiary of Hambros Bank plc. Prior to his tenure at SPP, Mr Shaffer was Vice President in the Private Placement Group at Bankers Trust Company. He began his professional career as an attorney with the White & Case law firm. We caught up with Mr Shaffer to discuss raising debt and equity in the private capital markets.

Tell us a bit more about SPP Capital Partners and the typical transactions you work on.

For over 28 years, SPP Capital Partners has maintained a consistent and active practice structuring and raising private debt and equity for our corporate and equity sponsor relationships.

Over the course of our history, we have completed approximately 500 transactions, representing more than $23.6 billion of capital. During the last twelve months alone, we have been mandated on and/or closed more than $1 billion of capital.

We maintain extensive relationships with more than 700 institutions that span every major lending and investing constituency in the private capital markets and source capital through professionally managed, competitive auctions that are tailored to achieve the client’s particular capital objectives.

We believe the consistency of our deal flow and our extensive relationships with a wide variety of capital providers offers our clients:

  • Competition among, and within, all investor constituencies;
  • True “market auction” terms;
  • Access to key decision-makers; and
  • Introductions to groups that go significantly beyond our clients’ existing relationships.

Since 2010, we have tracked each bid we’ve received on every deal the firm has marketed. Today, the SPP analytics database is comprised of approximately $15 billion of bid data. The strong reliance on empirical data has resulted in an average oversubscription rate in excess of 6.0x for SPP led transactions, which provides our clients with both certainty of closing and an extensive menu of options on any given capital raise.

Over the course of our history, we have completed approximately 500 transactions, representing more than $23.6 billion of capital.

In addition to our Investment Banking practice, we have a direct lending platform, SPP Mezzanine Partners. SPP Mezzanine Partners is a privately-held investment management firm founded in 2003 to provide subordinated, second lien, and unitranche debt, along with equity co-investments, for established lower middle market companies with proven business models, stable cash flows and strong management teams.

What business sectors have you worked with in 2019?

SPP’s practice covers consumer goods, restaurants and retail, business services, industrial goods, basic materials, financials, healthcare, manufacturing, conglomerates, technology and utilities.

Our practice over the course of the last decade has become increasingly equity sponsor centric. To date, we have raised debt and equity capital for more than 60 leading private equity firms and their portfolio companies. Our successful transaction history and demonstrated value proposition have often led to multiple transactions with these clients. In some cases, equity sponsors have executed “Omnibus Agreements” with SPP to manage 100% of their financing needs ranging from existing portfolio companies to acquisition candidates.

Most of the deals we worked on in 2019 included restaurant groups, aeronautics component manufacturing, commercial flooring, charter schools, medical products, industrial transportation and staffing.

What projects is SPP Capital Partners working on in 2020?

We are starting the new year with transactions in cellular services, and healthcare transportation services.

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