Sam McNeil, Managing Partner, River Capital Partners LLC
Invest: spoke with Sam McNeil, managing partner of investment manager River Capital Partners LLC, to discuss strategies that make for successful client relationships and outcomes, and how supporting small businesses is a key art of its scope. “We can introduce these businesses to sources of capital like private equity and debt funds and private family offices,” he said.
What have been the key milestones for River Capital Partners over the past year?
We completed over $80 million in a series of transactions in a complicated situation involving a variety of assets. We have gotten more selective with the clients we have taken on, and the ones we have are very good from both a business and character perspective.
How has demand for your services shifted recently?
Demand for quality assistance is always high. I feel cautiously good about the market now, although the inflation numbers are concerning. We’re industry-agnostic, so other than some retail and office real estate segments, we aren’t seeing a lot of weaknesses. But with small business, we see some concerns regarding owner confidence. A lot of banks, particularly the larger ones, aren’t always aggressive with lending to privately owned businesses. Recently the Fed announced that bank lending standards remained constant in late 2024, which is positive.
How important are ethics when assessing potential clients?
It’s hard to have 100% ethical certainty, and it’s critical to do homework on company owners and key officers, and any legal or other issues they may have. Interestingly, one concern from capital providers is how divorced male senior leaders make child support payments. We depend a lot on our relationships to get appraisals of potential clients.
What are the most pressing financing issues facing small businesses today?
I come from a financing perspective, and the fact is many small businesses don’t know what capital alternatives there are besides banks, and they don’t know how to access those resources. That is where River Capital Partners comes in. We introduce these businesses to sources of capital like private equity, smaller banks, debt funds and private family offices, and assist with structuring and due diligence.
How have technological innovations like artificial intelligence impacted the industry?
I already use AI quite a bit for things like processing legal documents, and I could tap into its potential even more. Frankly though, in my opinion, a lot of technology isn’t great because it gets wrapped up in massive enhancements while overlooking simple technical improvements to existing applications, such as basic functions with email and calendars. But at the end of the day, if one doesn’t embrace AI they are taking a big risk and getting behind. The challenge is whether companies are truly utilizing AI applications for effective outcomes.
What makes Charlotte an attractive place to relocate?
On average over 100 people move to Charlotte every day, and we have over 140,000 daily airport passengers. I look closely at the 20 to 40 year-old demographic, who are generally more apt to move to appealing locations. I have three kids that recently graduated college, and they and a bunch of their friends from all parts of the country have relocated to Charlotte. They love the vibrancy and job opportunities, and Charlotte is where many of their friends are going. I see that age group as being a key indicator of the future prospects of the city.
What is your assessment of the Charlotte business landscape?
Ten years ago, if you wanted to meet people to help your business in Charlotte, you often had to travel to another major city. Now, we have those people traveling here, and many want to move here, for both their business and family. This trend continues to feed on itself. I wasn’t this bullish on Charlotte even five years ago, but North Carolina has been very friendly to business, and that has helped the market to thrive.
What is your outlook over the next few years?
Optimistic but mindful of risk. Government deficits are too high, which could severely hamper capital markets unless appropriate action is taken. Alternative capital is now, literally, in the trillions of dollars and we think more business owners will access it. So long as owners are ethical and have good track records, we can help them access attractive capital.
