Merchant, investment banking focus of CIA

by Paul Flemming

SBJ Staff

Robert M. Mahoney announced Jan. 15 the creation of Community Investment Alliance, a firm providing both merchant and investment banking services. Mahoney said the company will raise $10 million for investment.

The Springfield-based company derives from the purchase of the assets of Missouri Advisory Capital Inc. The company's first transactions include the acquisition of Select Impressions, Gared Sports Inc., Performance Sports Systems Inc. and the purchase of controlling interest in MetroPolymer Labs Inc.

In a release, Mahoney distinguished between the operation of investment banks and merchant banks. He said investment bankers raise capital for businesses, with investors who remain passive through the purchase of securities. Merchant bankers, however, take an ownership position in their investments and are active in the management of the firms.

"Often we see entrepreneurs with the ability and character to be successful small-business owners who need a little help," Mahoney said in a release. "This kind of help simply isn't available from traditional business financial outlets."

Community Investment Alliance will bring together people with money to invest and individuals seeking capital for startup ventures, or to add to existing operations. Investors will provide money, as well as expertise and leadership, a release said.

Mahoney is president and chief executive officer of Community Investment Alliance. He is the former chairman and CEO of a St. Louis investment banking firm. Former Springfield Mayor Mac McCartney, also a former consultant to Missouri Advisory Capital, will be in charge of daily operations.

Among the other principals and organizers of Community Investment Alliance are:

?Greg Spencer, former president of Missouri Advisory Capital Inc.

?Dimitrios Koukoulomatis.

?John R. Duggins, CPA and controller of Bass Pro Shops.

?Patrick J. Lee, former vice president and general manager of Syntex Agribusiness' Nutrition and Chemicals Division.

?Mel Hancock, former congressman from Missouri's 7th District.

?Marshall Gordon, former president of Southwest Missouri State University.

?Robert H. Luke, department head and professor of marketing at SMSU.

?Melissa S. Burnett, associate professor of marketing at SMSU.

?Gayle A. Runke, assistant professor of health, physical education and recreation at SMSU.

Mahoney said its inclusion of academic leaders brings an assortment of knowledge and expertise, particularly in marketing and financial skills, not available from existing banking services in the area.

"We intend to raise ten million dollars," Mahoney said. "Quarterly reports will provide an audited record of our accomplishments. When people see our results and understand our community mission, they will want to invest."

[[In-content Ad]]