Westwood Capital Research
Advisory Approach
Westwood Capital is a specialized investment banking firm founded in 1995 that operates on a distinctive thesis: investment bankers should provide value-added, customized solutions to clients' capital markets needs rather than selling standardized financial products on a high-volume basis. This philosophy permeates every aspect of their practice. The firm's bankers are not merely transaction processors—they are creators of financial technologies and structures that have become widely accepted throughout the capital markets. With professionals averaging nearly two decades of experience each, Westwood brings deep expertise in developing novel solutions for unique financial challenges. Their approach is particularly valuable for complex situations where traditional one-size-fits-all banking products fail to capture the true value of underlying assets or business platforms.
Sector Focus
Westwood Capital has established itself as a leading advisor in non-bank financial services mergers and acquisitions. This is their core competency and primary differentiator. The firm has deep expertise working with asset-based lenders, specialty lenders, leasing companies, and factors—businesses that traditional investment banks often struggle to properly value and structure. Westwood's team understands the economics of origination and servicing platforms, the value of recurring revenue streams, and how to position these businesses to strategic buyers and private equity sponsors.
Beyond financial services, Westwood maintains significant capabilities in real estate, particularly in hospitality and gaming sectors where they have been involved in transactions ranging from $50 million to over $1 billion. Their real estate practice extends to self-storage, healthcare facilities, and specialty retail. The firm also applies structured finance techniques to project development, particularly for large-scale entertainment and recreation venues.
Deal Track Record
Westwood Capital has completed numerous significant transactions across its nearly three-decade history. Notable M&A advisory engagements include advising Adherence Technologies Corporation, a provider of voice-activated documentation systems for nursing homes, in its sale to Vocollect, Inc., the world leader in voice-directed work solutions. This transaction exemplifies Westwood's ability to position healthcare technology companies to strategic buyers.
In the structured finance arena, Westwood completed a groundbreaking $205 million securitization of receivables backed by Low Income Housing Tax Credit (LIHTC) properties in 2019—a transaction that Moody's rated A2 and that represented the first time syndicator interests in LIHTC properties had been used to back structured securities. Managing Partner Daniel Alpert described this as a "watershed in the history of the 33-year-old Low Income Housing Tax Credit syndication industry."
Other significant transactions include arranging $350 million in financing for the Hard Rock Theme Park in Myrtle Beach, structuring a $100 million revolving securitization facility for Hana Financial, completing a $29 million government credit-enhanced financing for the Aviator Sports and Recreation Complex in Brooklyn, and advising on a $50 million mezzanine financing for First Capital, a national commercial finance company. The firm also arranged $5 million in financing for Edgar Online, consisting of a $2.5 million term loan and $2.5 million revolving credit facility.
Westwood's professionals have been involved in creating several first-of-their-kind financial structures, including the first rated commercial mortgage-backed security issue backed by a pool of mortgage loans acquired from a distressed lender, the first rated CMBS backed by properties owned by a single borrower, and the first securitization of gaming revenues. These innovations demonstrate the firm's ability to develop "never-before-done" solutions that create new markets and unlock value.
Process & Fee Structure
Westwood Capital runs customized, relationship-driven advisory processes tailored to each client's specific situation rather than following rigid transaction playbooks. Their approach emphasizes deep involvement from senior professionals throughout engagements—going "shoulder-to-shoulder with clients, from beginning to end." This is particularly valuable in complex situations involving distressed assets, structured securities, or businesses with non-obvious valuation characteristics.
The firm's structured finance expertise allows them to design creative capital structures that maximize value while managing risk. They are willing to dedicate resources to multi-year assignments, particularly in project finance and real estate development, demonstrating a commitment to long-term client partnerships rather than quick transaction churn.
Fee structures are customized to each engagement based on complexity, duration, and the specific services required. While Westwood does not publish standard fee schedules, their focus on bespoke solutions suggests negotiated arrangements rather than standardized percentages.
Buyer Network
Westwood Capital has cultivated deep relationships across the financial services ecosystem. Their buyer network includes strategic acquirers in banking, financial technology, specialty finance, and business services sectors. The firm has worked with numerous private equity firms focused on financial services and has demonstrated success in identifying buyers who understand and will pay for the value of origination platforms, servicing capabilities, and recurring revenue streams.
In the gaming and hospitality sectors, Westwood has relationships with strategic operators, private equity sponsors, and real estate developers active in those industries. Their $100 million+ securitization transactions also demonstrate access to institutional investors and structured finance buyers.
Competitive Positioning
Westwood Capital differentiates itself through several key attributes:
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Structured Finance Expertise: Few investment banks possess Westwood's depth of knowledge in asset-backed securities, securitization, and structured products. This expertise is particularly valuable for financial services businesses where the value lies in future cash flows from originated assets.
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Financial Services Focus: While many banks claim financial services expertise, Westwood has built its practice around non-bank lenders and specialty finance companies. They understand the regulatory, operational, and valuation nuances of these businesses.
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Innovation Heritage: The firm's bankers have created multiple financial technologies and structures that became industry standards, demonstrating an ability to think beyond conventional approaches.
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Senior Professional Involvement: Clients work directly with experienced managing directors rather than being handed off to junior staff, ensuring institutional knowledge is applied throughout engagements.
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Distressed Situations: Westwood has demonstrated success where others have failed in disposing of distressed companies and asset pools at prices that recognize underlying platform value.
Not a Fit If
Westwood Capital is likely not an ideal fit for:
- Businesses seeking a limited process or quick sale without comprehensive buyer outreach
- Simple, straightforward situations that don't require creative structuring
- Companies looking for traditional bank financing without advisory components
- Transactions where the primary value driver is physical assets rather than cash flows, origination capabilities, or intellectual property
- Clients seeking standardized, commoditized banking services
Team
Westwood Capital is led by founding partners with decades of experience. The team includes:
Daniel Alpert - Founding Managing Partner with 30+ years of international merchant banking and investment banking experience. Alpert has led the first-ever rated commercial mortgage-backed security issue backed by mortgage loans from a distressed lender, the only REIT IPO involving simultaneous public offering and Chapter 11 asset acquisition, and the first gaming revenue securitization. He is widely quoted in major financial media outlets including The Wall Street Journal, New York Times, Bloomberg, and appears regularly on CNBC, Fox Business, and CNNI.
Jon Messersmith - Managing Director with over 25 years of corporate finance, restructuring, and investment banking experience. Messersmith focuses heavily on real estate and securitization practice, with clients and assignments in large-scale residential homebuilding, multi-family property development, hospitality, entertainment, gaming, and retail. He has worked on projects across the United States, the Caribbean, China, Vietnam, and Japan. He has been involved in one of the first music royalty securitizations and previously founded technology companies that were acquired. He holds a B.S. from Cornell University and an MBA from the Wharton School.
Robert "Rab" Ker - Principal, involved in the firm's management and operations.
The firm maintains approximately 7 senior professionals across its leadership team. Westwood's professionals average nearly two decades of experience each and have been engaged in the creation and popularization of many financing forms now widely accepted in financial markets.
Geographic Coverage
Westwood Capital is headquartered at 437 Madison Avenue, 24th Floor, New York, NY 10022, with phone (212) 867-3200. The firm is registered to conduct business in seven states: Arizona, California, Connecticut, Florida, New York, Ohio, and Pennsylvania. While based in New York, Westwood's practice has a national reach, with particular depth in transactions involving assets or operations across multiple states. The firm has also executed international transactions in East Asia, the Middle East, Eastern Europe, and the Caribbean, demonstrating cross-border capability.