Stonegate Capital Markets Research
Advisory Approach
Stonegate Capital Markets is an independent boutique investment banking and M&A advisory firm headquartered in Dallas, Texas, with deep expertise in lower and core middle market transactions. Founded in 1999, Stonegate operates with a core thesis: the best outcomes for sellers come from institutional-quality M&A processes combined with extensive access to a diverse buyer network. The firm specializes in creating competitive auction environments where multiple qualified buyers bid on transactions, driving superior valuations and optimal organizational fit.
The firm's approach is characterized by senior-led transaction teams composed of experienced investment bankers, analysts, and sales professionals drawn from their affiliate SRG Capital Partners. Unlike transactional advisory shops that run quick processes, Stonegate dedicates substantial resources to each engagement: comprehensive due diligence support, quality of earnings analysis, detailed marketing materials preparation, and targeted investor outreach across their 2,500+ institutional relationships.
Co-CEOs Scott Griffith and Jesse Shelmire lead the firm. Jesse has been with Stonegate since its founding in 1999 and has personally managed approximately 100 transactions across diverse industries. This institutional knowledge and relationship depth is a core competitive asset—Stonegate's investment bankers understand deal dynamics, buyer preferences, and market positioning from a quarter-century of M&A experience.
Sector Focus
Stonegate advises across a broad range of industries with particular depth in manufacturing, technology, healthcare services, business services, financial services, and real estate. Within manufacturing, they demonstrate capability in discrete manufacturing (as evidenced by the Military Fasteners acquisition they recently advised) and process industries. Their technology advisory work spans software, IoT platforms, and industrial tech solutions serving manufacturing and logistics.
In healthcare, Stonegate maintains an active M&A advisory practice serving healthcare services businesses, including physician practice management and provider networks. Their business services capability includes staffing, facilities management, and professional services firms. Financial services advisory work includes fintech, alternative lending platforms, and regional financial institutions. Real estate advisory covers commercial real estate services and property management businesses.
The breadth of sector expertise reflects Stonegate's positioning as a generalist lower middle market bank rather than a vertical specialist. This generalist approach allows them to serve founder-owned and family-backed businesses across multiple industries who need institutional-quality M&A guidance without committing to a banker with narrow vertical focus.
Process & Fee Structure
Stonegate runs institutional sell-side M&A processes designed to maximize value through competitive buyer outreach. The typical engagement structure includes initial business assessment and valuation analysis, comprehensive due diligence coordination, preparation of comprehensive marketing materials and management presentation, structured confidential information memorandum (CIM) development, and coordinated outreach to 50-150+ targeted buyers drawn from their institutional relationships.
The buyer targeting process is deliberate and strategic. Rather than a generic buyer list, Stonegate's team identifies strategic acquirers, private equity firms with the right thesis, family offices seeking add-on or platform acquisitions, and management teams seeking platform consolidation. Multiple bidders are actively encouraged—the competitive auction format is core to their value proposition.
Process timeline typically runs 6-12 months from engagement to close, depending on complexity. Stonegate provides hands-on support through negotiation, management team preparation for buyer meetings, data room organization, and closing coordination. While specific fee structures are not publicly disclosed, standard lower middle market M&A advisory fees apply, typically modified Lehman formulas or percentage-of-transaction-value structures, with retainers credited against success fees.
Buyer Network & Track Record
Stonegate's competitive advantage is institutional access. The firm maintains relationships with 2,500+ institutional investors including private equity firms, family offices, hedge funds, venture capital firms, and strategic acquirers. This network was built over 25+ years of transaction experience and ongoing capital markets outreach.
The firm has completed transactions totaling over $1 billion in aggregate transaction value. Jesse Shelmire's personal M&A transaction count of approximately 100 deals since 1999 provides confidence in execution capability and relationship depth. Recent advisory work demonstrates capability across deal types: the Military Fasteners acquisition advisory (with co-advisor The Lerson Group) shows ability to place lower middle market manufacturing businesses with PE buyers under favorable terms and strong cultural alignment.
Beyond M&A advisory, Stonegate demonstrates institutional capital markets connectivity through 80+ public offerings as placement agent, raising over $800 million for clients. This capital raising capability benefits M&A clients—the firm understands both the equity and debt financing landscape and can advise on optimal capital structures post-transaction.
Competitive Positioning
Stonegate differentiates through several dimensions:
Independence: As a boutique independent firm, Stonegate has no conflicts of interest with PE sponsors or strategic buyers. This allows unflinching representation of client interests in negotiations.
Longevity & Relationships: 25+ years in business with stable leadership provides continuity and deep institutional relationships. Jesse Shelmire's quarter-century with the firm, paired with his ~100 completed transactions, demonstrates consistency and relationship capital.
Senior-Led Teams: Unlike larger investment banks where junior analysts drive process, Stonegate dedicates Partners and Managing Directors directly to client engagements. Scott Griffith and Jesse Shelmire's personal involvement in transaction leadership sets expectations for senior attention.
Institutional Process: Stonegate emphasizes rigor and institutional-quality process management. Quality of earnings support, comprehensive due diligence coordination, and professional buyer interactions distinguish the firm from transactional brokers.
Capital Markets Connectivity: The combination of M&A advisory expertise with equity research platform (Stonegate Capital Partners covers 40+ small-cap public companies) and capital raising (80+ public offerings) creates a comprehensive capital markets resource.
Not a Fit If
Stonegate typically serves businesses seeking institutional M&A processes and competitive buyer auctions. They decline engagements where:
- Clients prefer speed over auction process (Stonegate's value is in comprehensive outreach and competitive bidding)
- Businesses are extremely specialized and require vertical-specific banking expertise
- Sellers are unwilling to invest time in process rigor and management preparation
- Deals are distressed or require crisis restructuring (this is outside their wheelhouse)
Team
The firm has approximately 10-15 investment banking professionals across M&A advisory, capital raising, and investor relations support. Key leadership includes:
Scott Griffith, Co-CEO, Partner — Senior investment banker with deep experience in M&A transaction leadership. Co-leads the advisory practice alongside Jesse Shelmire.
Jesse Shelmire, Co-CEO, Partner — Founder-era veteran with 25+ years at Stonegate. Managed approximately 100 transactions since 1999. Holds FINRA Series 7, 24, 63, 79, 99 licenses. Primary point of client contact for M&A strategy and process leadership.
Preston Graham, Partner — Senior banker contributing to transaction execution and client relationship management.
Dennis Dobson, Managing Director — M&A advisory professional supporting transaction execution and due diligence coordination.
Justin Martin, Managing Director — Investment banking professional with FINRA registration. Active in transaction execution and buyer outreach.
Zach Amrein, Managing Director, Head of Business Development — Primary business development and client acquisition lead. Contact: 214-987-4121, Info@stonegateinc.com.
Paul Whitley, Strategic Advisor — Advisory resource for strategic planning and transaction strategy.
Andrea Hedrick, Managing Director of Originations — Leads capital raising and origination for new advisory mandates.
Louise Shelmire, Compliance Advisor — Compliance and regulatory oversight since 2018.
Maximus Alexander-Nino, Analyst — Research and analytical support.
Geographic Coverage
Headquartered in Dallas, Texas (500 Crescent Court Suite 370), Stonegate serves clients nationwide. The firm's investor network extends internationally through relationships with multinational PE firms, strategic acquirers with global operations, and family offices with international investment mandates. Primary focus is US-based lower and mid-market transactions, with capability to facilitate international buyer access and cross-border transactions.
Institutional Standing
Stonegate Capital Markets is registered with FINRA (Member FINRA/SIPC) under CRD# 6376 and SEC# 8-17359. The firm operates under strict regulatory oversight and maintains compliance infrastructure supporting broker-dealer registration. Multiple team members hold FINRA securities licenses (Series 7, 24, 63, 79 registrations), ensuring appropriate regulatory standing for investment banking activities.