WHO WE ARE

Founded in 2000, InnoVative Capital is an independently owned mortgage bank and financial advisory firm.

As a committed industry leader in extending capital access to essential community facilities nationwide, we operate as a Registered MSRB/SEC Advisor, HUD Mortgage Lender, and USDA Financial Advisor. We modernize rural healthcare, expand affordable housing, enhance local economic development, and advise in public finance transactions.

With a transaction portfolio exceeding $1 billion, we draw on our extensive expertise in capital markets, project development, and federal funding programs to deliver tailored, complex capital solutions that meet our clients’ unique needs.

• CORPORATE AFFILIATIONS/MEMBERSHIPS

  Healthcare:

  • America Hospital Association
  • American Society of Healthcare Engineers
  • Committee on Healthcare Finance
  • Georgia Hospital Association
  • Healthcare Financial Management Association
  • Hometown Health
  • National Rural Health Association
  • Texas Organization of Rural and Community Hospitals

  Municipal and Public Finance:

  • Association of County Commissioners of Georgia
  • County Commissioners Association of Pennsylvania
  • Mortgage Bankers Association of America
  • Municipal Analysts Group of New York
  • National Federation of Municipal Bond Analysts

  Housing & Economic Development:

  • Housing Alliance of Pennsylvania 
  • National Association of Development Organizations
  • National Association of Housing and Redevelopment Officials
  • National Rural Economic Developers Association
  • Pennsylvania Association of Housing and Redevelopment Officials
  • Public Housing Authorities Directors Association

• CREDENTIALS/ROLES

  • HUD Licensed FHA Title II Lender
  • MSRB/SEC Registered Municipal Advisor
  • USDA Banker
  • Corporate Financial Advisor
  • Development Consultant

Our Founder

Alan P. Richman, President & CEO of InnoVative Capital, brings 40+ years of expertise in hospital finance, municipal advisory, real estate, commercial and international banking, public housing, and investment management. He has represented clients throughout the United States, its territories, and internationally.

Alan has established InnoVative Capital as a leader in rural hospital advisory and banking, expanding its services into public housing, senior living, and economic development.

Previously, Alan was the Head of Municipal Bond Research at The Vanguard Group and Vice President at T. Rowe Price Associates. He also held executive positions with two international banks, co-founding the U.S. Public Finance at Crédit Local de France and established the North America Public Finance Department for The Tokai Bank.

Alan is a recognized expert in healthcare and public finance, frequently contributing to industry matters through articles, case studies, and lectures at universities and educational forums. He has testified at federal, state, and local hearings and holds memberships related to hospital management, affordable housing, municipal finance, economic development, and public administration. 

Alan has professional licenses, including Series 6, 7, 50 (Municipal Advisor), 54 (MA Principal), and 63. He earned his M.B.A. in public finance and a B.S. in economics from the State University of New York at Albany.

History

• 2000 – 2005

  • 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 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.

• 2006 – 2010

  • 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.

• 2011 – 2015

  • 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 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.

• 2016 – 2020

  • 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.

• 2021 – Present

  • 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.

  • As Municipal Advisor for the Housing Authority of the County of Santa Barbara, InnoVative Capital executed the refinancing and substantial renovation of their Central Plaza Apartments, a 112-unit property in Santa Maria, California. The $31 million capital stack included, 4% LIHTC, developer equity, deferred developer fee, and permanent and construction loan.
  • As inflation and rising interest rates remain high, 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.