Andrea Sotgiu is the CEO and Founder of Lavan Financial Group LLC. He founded the Company following a 28 Year career in the financial industry largely on Wall Street.
With a strong portfolio of successes Mr. Sotgiu orchestrated start-up, growth and development across a variety of Capital Market businesses for top tier banks, both in Europe and North America. At investment Banks JPM, Deutsche Bank, HSBC, Macquarie Bank and BNP Mr. Sotgiu worked closely with Institutional clients: He structured billions of U.S. dollars of equity and debt capital funding for hundreds of institutions in the US, Europe and Asia, supplying capital to fuel their success.
The son of a restaurant owner, Mr. Sotgiu quickly understood cash flow and liquidity were something essential to his father’s business. He watched his father counting the takings, paying staff, purchasing kitchen stocks, repair costs for the Gaggia espresso machine; Cash flow, profit and loss, money in, money out and on occasion the cash flow slowed the Bank manager came to the rescue.
Latterly, knowing the terms and rates it was good business for the Bank, with a blanket lien including the freehold property for security and double digit variable interest. Over the years the restaurant survived the ups, and downs. With no working capital and without a bank manager to call, a business typically failed. The alternative capital sources to the banks at the time were dark places you didn’t really want to go, pawnshops or loan sharks. With no usury laws to protect unscrupulous lending practices business owners had very limited choices and would rarely be able to afford the “vig”.
Throughout his career on Wall Street Mr. Sotgiu provided capital and liquidity solutions to large institutions. While packaged differently and in greater $ value, essentially many of the debt and equity products delivered on Wall Street to large businesses are the same on main-street, a “loan”. Many striking differences exist between Wall Street and Main Street loans, which continue to evolve; Rates, terms, covenants, perpetual evergreen liquidity facilities and many more. All loan features are a result of the lenders assessment of risk to the underlying borrower. Less risky borrowers attract preferred terms and rates.
Very often though it is “The difficulty obtaining any Capital, or the time it takes to access at any price and terms that causes smaller business owners to miss great opportunities and or fail.”
Broad, Tailored Financing Solutions and Unique Value Proposition
Believing a gap in the market existed to better serve smaller business owners Mr. Sotgiu founded the Lavan Financial Group based on the following clear measurable objectives and principles:
- The predictable impact Capital Structure has on a business and the relative struggle each unique company has to obtain appropriate funding.
- The inequality of money flow, availability, terms and difficulty smaller business owners endure to gain access to Capital.
- How the system post the subprime mortgage crisis has handicapped Banks, hindering their ability to assist smaller business and slowing money supply.
- Why a different Commercial lending model would meet the needs of smaller businesses.
- How an advocate, and partner with the knowledge and experience to help navigate the storm and map a path to a healthy capital structure would accelerate small business success rates.
A team of highly experienced, certified finance consultants deliver tailored capital and liquidity solutions to businesses nationwide. Underpinned by capital rich, diversified funding partners they offer a very broad array of financing products. Correspondent relationships with Insurance investment conduits, to Family offices, Hedge funds, Investment Banks, Private Banks, CMBS conduits, Commercial Real Estate pools, Traditional Banks and other unique sources of private investment capital ensures a high success rate. Applying deep knowledge and expertise they meet the capital demands of a full spectrum of businesses and risks. Tasked to define the uniqueness of each business, expressed as proprietary risk factors, funding is derived efficiently by aligning to optimum pools of risk capital.
Mr. Sotgiu believes in advocacy for businesses, and being a partner who can empower a business with tools, knowledge and resources to access and manage the Capital essential to their success. While priority is always to address and solve for any urgent capital needs, he believes a company should be able to take advantage of the opportunities yet to come. Prepare for the capital before you need it and create a capital structure for success. The Lavan Financial Group was founded with the goal of changing the lending landscape for businesses needing a genuine helping hand.
“Our success is driven from relationships, which starts with a conversation. We invite you to call us or fill out some information on line so we can start to solve your capital and liquidity needs today.”
Andrea, his wife and 3 children reside in Greenwich, CT