#1 - Who is SEVILLE Capital Partners

Hello potential GPs and LPs,

I hope this message finds you well. You are receiving this communication because you have expressed some level of interest in the activities of our investment firm. This medium is our choice for keeping everyone informed and up to date. There is no financial commitment or expectation of any binding obligation to our firm by simply reading what we are sending you. It is for informational purposes only.

WHO ARE YOU?
SEVILLE Capital Partners (SCPS) is an alternative asset investment manager founded in Bethesda Maryland in 2024.  The firm makes equity and debt investments in real estate across several markets in the South Eastern region of the United States.  SCPS specializes in middle market direct investments and joint venture partnerships in single family residential, multi family, senior housing, student housing, self storage, controlled environmental agriculture (CEA) and retail.

The person sending you this communication is me: Michael Gillespie

HOW DID WE GET HERE
Like many of you, I have invested in many things over the years, some good and some not so good. One of the best things I have ever done is invest in real estate. My first investment in real estate that was not my primary residence was about 16 years ago. For the past 25 years I have studied both the public and private markets as well as how wealth is created and the differences between the demographics. The creation of this firm is basically the result of that 25 year long case study and all of the things I have learned along the way.

THINGS YOU SHOULD KNOW
There are basically two types of investors according to the SEC:

Non-Accredited
Less than 1MIL in net worth (excluding primary residence) OR Less than 200,000 gross income per year (single) or 300,000 per year (married)

Accredited
More than 1 MIL in net worth (excluding primary residence) OR More than 200,000 gross income per year (single) or 300,000 per year (married)

Institutional Investors
Commercial Banks, Mutual Funds, Hedge Funds, Pension Funds, Insurance Companies, Endowment Funds

 “Americans must generally be “accredited” to invest in private companies and investments such as private equity and hedge funds.”

 _{REF: https://www.cnbc.com/2023/12/19/inflation-adds-millions-of-new-accredited-investors-sec-says.html}

THE MATH
Approximately 10% to 15% of American households qualify as accredited. Of those, only 1.3% are Black and 2.8% are Latinx. For someone, whose networks are largely rooted in Black and Latinx communities, that means less than 1% of the people “like them” are allowed to invest freely.

“What does invest freely mean?”

The accredited investor definition gives the SEC the authority to decide who gets to invest where: public markets for most, but public and private markets for those it judges to be worthy. <- KEY WORD !!!!
_{Reference: https://www.cato.org/testimony/sophistication-or-discrimination-how-accredited-investor-definition-unfairly-limits#the-accredited-investor-definition-is-fundamentally-unfair}

By effectively excluding middle and lower income individuals from many of the offerings in the private markets, the current regulatory climate limits the ability of such individuals to amass wealth, diversify holdings, and hedge certain risks. The accredited investor definition reinforces wealth gaps that exist in American society by reserving private market opportunities for the already wealthy.

The accredited investor definition also makes it harder for those who are not already wealthy to amass wealth by locking them out of private capital markets that are larger than the public ones and generate greater returns. As noted above, Regulation D offerings raise more money than all registered offerings combined. These markets are not only larger, but they also present more diverse opportunities for investors than investing in the public markets (i.e., the stock market)

SO WHAT NOW?

The investment manager’s primary focus is about we know best, real estate. It is not a VC fund, a hedge fund or a mutual fund. Our first offering will be a single family syndication in the DC Metro market. it is intended to be a vehicle for both accredited and non accredited investors to build wealth and passive income through direct equity investment in real assets across several markets and classes. Right now we are working on the following:

Finalizing the investment Thesis and Pitch Deck
Working with the securities attorney to finalize the PPM and LPA documents
Analyzing data on target markets to support initial capital investments
Finalizing web presence and marketing materials

Hopefully this wasn’t too much. There is a lot to be excited about. The fund will launch by the end of the year. In the next communication, I will explain in more detail about the fund’s objective, how we plan to execute and how YOU will make money. More to come………………..

v/r,

Michael Gillespie
General Info: [email protected] 
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