Customized Financial Solutions
Delivering Low-Cost Capital
Customized Financial Solutions
Delivering Low-Cost Capital
About Us
InnoVative Capital prides itself as an industry leader in providing capital access to critical access and community hospitals.
Founded in 2000, InnoVative Capital, LLC is an independently owned, mortgage banking and financial advisory firm, operating as a HUD Mortgage Bank, USDA banker, and Registered MSRB/SEC Advisor.
With client transactions exceeding $1billion, we executes complex funding stacks tailored to the specialized needs of our unique clients. Our engagements are enhanced by our knowledge of the capital markets, project development, federal funding programs, public finance, operational enhancements strategies, and community affairs.
Our representation extends to hospitals, housing and economic development authorities, senior living providers, developers, local governments, municipal entities, and community-based organizations.
Our core practice emphases the preservation of healthcare in rural America.
Our Founder
Alan P. Richman founded InnoVative Capital in 2000, and currently serves as its President and CEO. With more than 40 years’ experience in hospital finance, Municipal Advisory, real estate, commercial banking, public housing, international banking, and investment management, he has represented clients in more than forty-five states and territories as well as worldwide.
Previously, Alan was the Head of Municipal Bond Research at The Vanguard Group, and Vice President at T. Rowe Price Associates. Additionally, he held executive positions at two international banks, with achievements including co-founding the U.S. Public Finance and banking operations of the French government-owned commercial bank, Credit Local de France, and establishing the North America Public Finance Department for The Tokai Bank.
With diverse financing and managerial experience, coupled with topical healthcare and housing expertise, Alan has been instrumental in branding InnoVative Capital as a leader in rural hospital advisory and banking, as well as directing its expansion into public housing, senior living, and economic development.
As a frequent contributor on industry matters, Alan has authored articles, presented case studies, lectured at prestigious universities, and led industry educational forums. As an industry expert, he has testified at local, state, and federal hearings and debated public policies. Alan maintains industry memberships and affiliations related to hospital management, public housing, municipal finance, economic development, and local government administration, where he has served in various capacities. He has held numerous professional licenses, having passed the Series 6, 7, 50, 54 and 63 tests, and is an MSRB/SEC-Registered Municipal Advisor and Principal. Mr. Richman received his M.B.A. in public finance and a B.S. in economics from the State University of New York at Albany.
Management
InnoVative Capital’s directors and officers draw upon accomplished resumes, including investment, commercial and mortgage banking, public finance, healthcare lending, hospital consulting, certified public accounting, municipal research, risk management, senior living, housing, international finance, and nonprofit leadership. InnoVative Capital is majority controlled by its employees who are stakeholders in InnoVative Capital’s success. An accomplished minority group of equity investors lend their expertise in real estate and healthcare law, as well as asset management.
History
InnoVative Capital, LLC is founded as an independently owned, HUD-licensed, FHA mortgage bank, USDA banker, and financial advisory firm.
InnoVative Capital’s launches its InnoVative Capital Funding Delivery System®, a registered platform for capital financing, which incorporates its proprietary CFO HELPER® Credit Analytics, a benchmarking and forecasting tool that optimizes financial performance and delivers funding options.
As the originating FHA Mortgagee, InnoVative Capital receives HUD’s initial FHA 242 mortgage insurance commitment for a Critical Access Hospital (CAH). Shoshone Medical Center, a 25-bed CAH in Kellogg, Idaho, becomes the recipient of a $19 million loan to fund the construction of its 48,000 sq ft. replacement facility.
InnoVative Capital is Financial Advisor to The Memorial Health University Medical Center in the $50 million municipal bond financing through the Chatham County Hospital Authority of its new cardiac tower.
InnoVative Capital consults on the conversion of North Valley Hospital into a Critical Access Hospital and thereafter, employs the InnoVative Capital Funding Delivery System® to underwrite HUD’s first FHA 242 loan to a “Necessary-Provider” CAH, in financing its $34 million replacement Planetree hospital.
InnoVative Capital obtains a “AAA” rating from S&P for the $50 million FHA 242 mortgage insured, tax-exempt bond financing of Matagorda Regional Medical Center’s 66-bed greenfield, replacement facility.
Amid the historic collapse of the U.S. mortgage markets, InnoVative Capital underwrites a $40 million GNMA collateralized FHA 242 direct loan to The Memorial Hospital of Craig, Colorado for its new 25-bed CAH relocated to a new medical campus.
InnoVative Capital closes its largest FHA 242 hospital loan to date, an $85 million financing of a new healthcare campus and replacement hospital for Meadows Regional Medical Center in Vidalia, Georgia.
Through the course of a five-year consulting assignment, InnoVative Capital works to restores Effingham Hospital of Springfield, Georgia to operating profitability. To subsize Effingham Hospital’s indigent care burden, InnoVative Capital lobbies and procures a thirty-year Intergovernmental Agreement to provide county financial support of $3.6 million per annum. Thereafter, serving as FHA mortgage banker to Effingham, InnoVative Capital originates and closes a $31 million HUD 242 loan funded with Recovery Zone Economic Development Bonds at a then record low net interest rate of 3.63%.
As FHA mortgage banker for Morehead Hospital of Eden, North Carolina, InnoVative Capital executes a unique FHA 223 (a)7 refinancing of its outstanding tax-exempt bonds with a Ginnie Mae collateralized taxable loan, which generates both immediate and near-term interest and cash flow savings exceeding $5 million.
InnoVative Capital serves as FHA mortgage banker for Knox Community Hospital of Mount Vernon, Ohio, in structuring a unique two-part FHA 242 debt refinancing and new-money loan, combining an advanced refunding of outstanding revenue bonds and the financing of Knox’s capital project. This structure realized $8 million in interest savings through an overall reduction of the loan rate by 75 basis points.
InnoVative Capital expands its consulting practice to incorporate client revenue enhancement services including capital grant writing, foundation fundraising, lobbying, and local government advisory.
InnoVative Capital receives a USDA commitment for a 2.375% 25-year, $35 million USDA direct loan to finance the replacement of Morgan Medical Center of Madison, Georgia, a 25-bed CAH. With an overall project budget of $38 million, MMC raised $3 million through a successful foundation-led fundraising campaign. In addition to the USDA commitment, InnoVative Capital managed other elements of this complex transaction as its municipal advisor: 1) structured the public sale of rated tax-exempt bonds for hospital interim construction, 2) lobbied and received County financial support through a 25-year Intergovernmental Agreement that pays MMC $1 million per annum for the life of the loan, 3) negotiated a clinical collaboration with a neighboring health system, 4) obtained successful receipts of a CON and Georgia Bond Validation, and 5) oversaw a land donation which facilitated the hospital’s relocation to a major thoroughfare.
InnoVative Capital receives its designation as an MSRB/SEC Registered Municipal Advisor in accordance with the Dodd-Frank Wall Street Reform and Consumer Protection Act.
InnoVative Capital announces the formation of its new public housing and economic development Municipal Advisory practice, and its selection by the Tulsa Housing Authority and Metropolitan Development Housing Authority (Nashville, Tennessee) to undertake corporate advisory and portfolio reviews.
At the culmination of its three-year CFO HELPER® consulting engagement, InnoVative Capital receives an historic 2.25% 35-year USDA Direct Loan commitment for Ferrell Hospital of Eldorado, Illinois to fund a $35 million modernization project of its 1928 facility. Ferrell Hospital is a 25-bed nonprofit CAH, which is an affiliate of Evansville-based, Deaconess Health System.
As Municipal Advisor to the Metropolitan Development Housing Agency, InnoVative Capital completes the tax-increment financing for a major Nashville mixed-use, office, residential and commercial development project (Fifth + Broadway). InnoVative Capital leads developer negotiations and restructures the debt issue, which generates overwhelming investor interest, and lowered borrowing costs for the MDHA and the city of Nashville by approximately $6 million.
InnoVative Capital completes its year long, review of MDHA’s outstanding TIF portfolio, and in public meetings recommends refinancing the bulk of MDHA’s outstanding loans with projected savings of over $10 million.
As Municipal Advisor to the Tulsa Housing Authority, InnoVative Capital closes two FHA 221(d)(4) collateralized, tax-exempt bond transactions in combination with 4% low-income tax credit (LIHTC) investments to fund public housing renovation projects and restore quality housing to its residents in North Tulsa.
Continuing in its role as THA’s Municipal Advisor, InnoVative Capital executes the financing of Phase I of THA’s HUD Choice Neighborhoods River West Project. This mixed-income development was financed with a multi-tiered funding stack that included a Freddie Mac Forward, construction bridge lending, 9% LIHTCs, borrower equity, borrower debt, and grants.
InnoVative Capital served as Municipal Advisor to the Housing Authority of the County of Santa Barbara in the placement of tax-exempt bank bonds in conjunction with the procurement and sale of 4% LIHTCs.
Despite the challenges of the pandemic, inflation, and rising interest rates, InnoVative Capital manages a rapidly growing financial advisory and banking practice.
InnoVative Capital remains a leader in the financing of critical access hospitals and expands its rural and community representation to include health system rural affiliations, as well as acquisitions.
Whether in direct engagements with Housing Authorities, or in partnership with independent developers, InnoVative Capital’s housing and economic development practice continues to plan, develop, and finance transformative redevelopment projects.