Rucker Capital Advisors Current Offering – Rucker Capital

Rucker Capital Prudent Speculators I, Inc.

Rucker Capital Prudent Speculators, Inc. (“Rucker Prudent Speculators I”) is a distressed focused newly formed blank check company that is raising capital for the purpose of entering into a turnaround transaction with a distressed company. (“Initial Distressed Funding Transaction”).

We are raising capital through the sale of Class A Stock and through a sale of Class B Stock. The proceeds from the sale of our Class A Stock will be placed into the Class A Escrow. If our Class A Stockholders choose not to participate in our Initial Distressed Funding transaction, Class A Shareholders can get their money back by requesting their pro rata share of the proceeds from the Class A Escrow through our Class A share redemption process. Class B Stockholders do not have such rights.

We will be seeking to consummate distressed transactions that are from approximately $3,000,000 to $150,000,000. Our efforts in identifying a prospective target business or other Distressed Funding Transaction will not be limited to a particular industry. Given that the transaction is larger than the amount of capital that we are raising, we will likely have co-investors made up of our sponsors’ network of private equity firms and institutions.

We believe that by having capital readily available that we will have:

  • An opportunity to negotiate a potential transaction with distressed companies.
  • Syndicate a transaction with financial partners such as private equity, institutional investors, private equity partners and large family offices.
  • Bring in experienced management teams with industry expertise that can restructure the target company.

Our Thesis

Our thesis is based on our belief that high debt levels increase the overall volatility of highly leveraged entities and increases the likelihood that these highly leveraged institutions will become distressed. This will provide opportunities for prudent speculators focused on distressed opportunities. We have observed that debt levels are high and are likely to increase under the new Presidential Administration.

We have observed the following:

  • Given high current asset and stock valuations there is a substantially higher probability that asset values (including stock prices) will decrease rather than increase which may make companies with high debt levels become distressed.
  • Global Debt to gross domestic product (“GDP”) has increased since 2007—Mckinsey & Co. reported that worldwide debt has increased by $57 trillion since 2007.
  • U.S. Total Public Debt to GDP has increased to 105%.
  • Non-financial corporate liabilities as a percentage of GDP is 96% which is one of the highest percentages since 1945.
  • U.S. Federal government debt is expected to increase under the new Presidential Administration.
  • China’s debt is much higher than the 2007 financial crisis which will limit its financial flexibility.

Our Sponsors

We are being sponsored by Rucker Capital Advisors, LLC (“Rucker Capital”). Rucker Capital’s key professionals are experienced financial services professionals that have worked at leading Wall Street investment banks and a national valuation firm. Rucker Capital’s professionals have provided advisory services on over $100 billion of financial transactions for Fortune 1000 and middle market corporations and their boards of directors. These transactions have included merger and acquisition transactions, debt and equity capital markets related transactions, initial public offerings (“IPOs”), and distressed restructuring transactions.

We believe that our Sponsors’ extensive network in the financial, legal, and corporate markets will be instrumental to us in originating an Initial Distressed Funding Transaction. We believe that in times of market turmoil, our Sponsors have an ability to identify attractive opportunities through its networks. For example, during the last financial crisis that began in 2008, our Sponsors used its network to identify, take a capital position, and raise capital for a start-up company with no revenues, Reliant Asset Management. By 2014, Reliant Asset Management was generating over $85 million of revenues and was ranked by Inc. Magazine as the third fastest growing company in America.

There are no assurances that we or our Sponsors will be able to identify similar or successful opportunities in the future for us. There are no assurances that past performance is an indicator of future performance. Rucker Capital believes that periods of financial crisis creates exceptional opportunities for speculators that are bold enough to take risks when others are seeking safety.

Our Sponsor will use a value investor approach to attempt to identify opportunities whose current market price is less than its stabilized intrinsic value. Our Sponsor will seek opportunities in companies and sectors that are currently out of favor and experiencing financial and/or operational distress.

Why Do We Call Purchasers Of Our Securities Speculators Rather Than Investors?

We and our Sponsors, Rucker Capital Advisors, LLC, believe it is very important to know the difference between investing and speculating. We and our Sponsors believe the best definition of investing was given by noted value investor, Benjamin Graham. Benjamin Graham defined an investment as an operation is one which, upon thorough analysis, promises safety of principal and an adequate return. Operations not meeting these requirements are speculative. Restructuring distressed businesses involve a high degree of risk and there may not be safety of principal. Thus we believe, our operations are speculative and purchasers of our securities are speculators.

Purchasers of our Class A Stock and Class B Stock are speculating and are speculators—not investing or investors.

Apply and request a copy of our private placement memorandum.

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Call (201) 855 9142