About Montgomery Street Financial Services, LLC

Montgomery Street Financial (”MSF”) is a privately owned investment banking company whose foundations lie in the world of highly structured finance. Founded by the senior leadership team from Bank of America Leasing & Capital Group in fall 2003 and based in San Francisco, MSF has focused its efforts in three business sectors.

ENERGY & ALTERNATE ENERGY

MSF works with development stage companies, entrepreneurs, manufacturers, and established corporations raising capital both at the corporate and project level. MSF takes an approach that is consistent and client focused, raising common and preferred equity for development stage companies and tax impacted financings at the project level for all stage companies.

MSF accepts a new client only when the client’s contemplated technology is economic when scaled. MSF has an aversion to the concept of “green for green’s sake.” Every alternative presented and every solution recommended by MSF is custom tailored. Fundamentally, MSF seeks to bypass a venture capital raise for early stage companies with the goal of retaining as much ownership as possible for the principals of their client companies.

The steps involved in MSF’s process is examination and due diligence on the technology as presented, creation of a business plan and associated complex financial model, and actual placement of the financing with qualified investors. MSF believes that financing timelines are best accelerated by personal presentations. The principals of the firm are involved in every financing with the credo, “We’ve been doing this for thirty years and are still doing it.” MSF has long and deep relationships with over 200 private equity investors and lenders in the US, Europe and Asia.

TRANSACTIONAL & PORTFOLIO ADVISORY WORK FOR CORPORATE CLIENTS

MSF completes work each year for banks and other corporate clients with investments manifested by complex documentation. Specializing in the arcane world of leveraged leases, MSF often reviews multiple intersecting closing documents and financial models as part of the original documentation to extract value through modification. MSF acts as a negotiating agent with and for issuers on behalf of institutions wishing to improve what would otherwise be an expected result from keeping the status quo. Most solutions improve a combination of tax, economic, and accounting results.

MSF principals believe that investments in structured financings should be systematically and periodically reviewed by the holder. Most structured investments are premised on the assumption that things will stay the same during a term of the agreement. However, they seldom do, particularly for long term instruments. An institution’s appetite for an Issuer’s credit, its ability to use tax elements of ownership on a timely basis, its assessment of the residual value of an asset, and other significant factors may change over time.

Despite the tax and accounting constraints which sometimes complicate transfer, MSF has developed strategies to maximize current and future value of structured assets for other institutions. This may involve restructuring, buying or selling, issuing options, or making other changes. MSF estimates approximately 100 domestic institutions currently hold investments in highly structured, long lived instruments which financed up to $500 billion of original equipment cost. MSF estimates that less than 1% of ownership interests are transferred each year, despite the potential to improve returns or reduce risk. MSF is currently developing a proprietary solution to facilitate the transfer of certain classes of leases. In light of the above, MSF is working with clients who own structured investments to maximize or accelerate returns and/or reduce risks.

HIGHLY STRUCTURED ASSET ENCUMBERED FINANCINGS

MSF has completed countless financings for middle market clients with financing needs for transportation, real estate, and energy assets. Ranging from a producer of dried fruit to an owner of unclaimed coal, from boats on the Mississippi River to a semiconductor manufacturing plant, MSF brings unparalleled structuring expertise and deep institutional relationships.

MSF has taken on assignments as far reaching as Delhi, India; Beijing, Peoples Republic of China; Jackson, Mississippi; Muenster, Germany; Pikeville, Kentucky; and Mexico City, Mexico. Since its formation, MSF has completed advisory and financing assignments in excess of $ 2.5 BN, covering a varied landscape:

• $240 MM of preferred equity for a development stage company with no current revenues
• Advisory negotiation on behalf of an international bank to maximize its tax indemnity claim in an airline bankruptcy
• Assembled syndicates of private equity and institutional lenders totaling $4.5 BN to purchase a targeted company’s assets and/or going concerns

The focus has been on businesses with “long lived” assets subject to contractual cash flows.