Twenty years ago, Richard Bryant a senior and Ben Brooks a freshman, both NC State students and Sigma Chi brothers, met at party in Myrtle Beach. After Bryant's graduation a few weeks later, despite entering the same profession in the same city, they never saw or talked to each other again ... until Brooks gave Bryant a call last July.
Richard Bryant
Richard Bryant grew up part of a very successful family business known as Bryant Supply in Gastonia, North Carolina. He had two passions growing up, 1) to be president of the family business, and 2) to go to Carolina.
"I lived and dreamed Carolina Blue," Bryant laments. Because the business was vested heavily in electrical supplies for commercial contractors, he decided he could best serve the business by becoming and engineer. Thus, denying his deepest passion he forsook Carolina and entered NC State. "That just about killed me," he recalls.
It didn't take him long to realize that engineering was not his cup of tea. In fact, "I hated it," Bryant confesses. He did however find business courses to his liking and changed his major accordingly. After graduation he went to work for the family business as planned. Soon thereafter he had another realization. "I hated it too," Bryant sighs. "My dad put me in the warehouse. I was bored, over-paid and in a hurry to become a success," explains Bryant. "I got engaged, bought a house and drove a fancy car. But, I wasn't happy."
He went to his father and asked to work by his side. "Dad, I want to learn this business from you," he requested. His father told him he couldn't do that because he had two older brothers in the business. "Well, then I quit," he told his dad. In turn, his father agreed it was the smartest decision any of his children ever made.
In a matter of weeks Bryant, at age 22, called off his engagement, sold his house and moved to Raleigh. At the urging of a friend who was experiencing some success as a stockbroker, Bryant applied to work at the same firm. Yet, after passing his exams and working a short time at the firm, Bryant became unhappy with some of their business practices. So, he called the manager of Prudential-Bache, who just so happened to have lost two brokers.
"Do you have your licenses?" he questioned Bryant.
"Yes sir I do," Bryant confirmed.
"Can you leave for New York on Friday?"
"Yes sir I can," Bryant quipped.
By Friday, he was on his way to the Big Apple as a broker for Prudential. However, in a matter of months frustration set in again. Bryant was discovering he was not born and bred to be an employee; his destiny was to have his own company. At 23, he was green and gutsy enough to start his own investment, stock-brokerage company. But, he worried, "Who would put their faith in me? What would be my advantage?"
He discovered the answer one evening at T.K. Tripps on Wade Avenue when he met Bobby Edgerton. Edgerton was a solo, contrarian investment advisor who, at the time, was managing about $5 million. Bryant was amazed that Edgerton was averaging a 27% annual growth rate for his clients. The two were opposites; yet, the young, brash Bryant and the older, reserved Edgerton immediately hit it off.
With Edgerton's expertise, Bryant could have the unique product and competitive advantage he desperately needed to establish his business. He proposed a partnership and by selling Edgerton's expertise, a new business was born in a one-room office on Barrett Drive. Today, that company known as Capital Investment Companies has over one billion dollars under management.
Ben Brooks
After two years at NC State, Ben Brooks transferred to Carolina and subsequently graduated with a degree in political science. By the time he was 25, he was married, expecting the first of four children, running the commercial loan department of Guaranty State Bank, and working on an MBA at Duke. He remembers the day he looked into the mirror and saw, "The only person who was willing to work hard enough to make me wealthy."
Believing that a career in banking would not allow him to reach his goals in a reasonable time frame, he resigned from the bank and joined Wheat First Securities as a broker in December of 1991. Over the next five years, Brooks diligently studied his craft and built a sterling reputation for himself amongst individuals of high net-worth in the Triangle. He also noticed investment opportunities available in local companies that were being taken advantage of by out-of-state investors. It became one of his goals to develop a local infrastructure that would benefit both local investors and local companies.
In early 1997, Marion Bass, the founder of the investment company that bore his name gave Brooks a call requesting they meet for lunch. Bass shared his dream of building a regional investment firm that would cover, what he referred to as, the I-85 technology corridor from Atlanta to Richmond. The Triangle was his next strategic location to connect a Charlotte base and an Atlanta branch. He believed Brooks was the man to establish the company's presence in the region.
After learning they shared a common vision and value system, Brooks opened the Raleigh office of Marion Bass on February 1, 1997. During the next three years, Brooks grew local revenues to $3 million and began handling financing rounds for Interactive Magic, SciQuest, C3, Research Triangle Commerce Inc., and other local companies.
By the time the calendar rolled over into the new millennium, the company was profitable. New clients and new brokers were seeking out the firm and the Raleigh branch moved into new offices on Edwards Mill Road. Then its fortunes rapidly changed. The market took a swift downturn, revenues declined, overhead increased, and in July of 2000 Bass suffered a stroke.
In October, Brooks reluctantly accepted the duties of CEO with a goal to stabilize the company and return it to profitability in 90 days. On day one Brooks cut one-third of the company's infrastructure by eliminating central office overhead. Rallying the remaining troops, the company returned to profitability by December 31.
Considering the health and interests of Marion Bass as well as his fiduciary responsibility to employees, Brooks began scrutinizing the financial landscape. Aware that larger firms had their eye on the Triangle, Brooks decided the timing was right to sell the firm. So, in February of 2001, just four years after opening the office, Marion Bass Securities was sold to Josephtal, Inc. of New York. Brooks stayed on as senior vice president and branch manager.
Although he had done the right thing to protect Bass and the employees, Brooks found himself frustrated with the whole financial services industry. Contrary to his vision, he witnessed the acquisition of several independent, regional brokerage firms by large corporate entities. Interstate Johnson Lane, Legg Mason, Scott & String Fellow, Wheat First, and now Marion Bass - all surrendered their independence. From Atlanta to Northern Virginia the regionals were disappearing.
Brooks still believing that local companies, local entrepreneurs and the locally affluent are best served by a local investment company that knows the community, the key players and how to leverage these relationships, began surveying the landscape once again. He came to realize that the new community banks cropping up presented both a need and a market opportunity. One, the popularity of the new community banks confirmed his belief that customers still craved the local touch and two, these banks need the services of a securities broker to handle stocks, bonds, insurance, estate planning, 401K plans, money management, and trust planning.
Brooks thought long and hard about starting his own firm when he ran into a former colleague and research analyst from Marion Bass, David Roper. Roper had joined Capital Investment Companies and recommended the firm to Brooks. Brooks looked into the firm and uncovered some exciting facts: Richard Bryant was his old fraternity brother from NC State, and the North Carolina Association of Community Banks recommends Capital Investment for back-room services to its member institutions. Brooks picked up the phone and gave Bryant a call.
The Combination
At their first meeting Brooks presented Bryant with seven points:
- To provide increased exposure to the regional market and to help build Capital Investment in a premier firm;
- To help build and enhance the community banking program;
- To help recruit new and top notch financial consultants;
- To bring the Southern Capital Venture Fund to a strong distribution network;
- To develop a strong wealth management program;
- To provide motivation and sales ideas to the brokers; and
- To assist the management team.
The meeting went so well that Bryant told Brooks, "We'll be working together in 90 days." Brooks, with his reputation for "thinking big" has great plans to assist the current principals, Bryant and Edgerton. Brooks intends to bring emerging opportunities to the firm through his privately-owned venture fund, Southern Capitol Ventures. With partners, Dave Murray and Jane DeGiacomo and a stellar local board of advisors, Brooks intends to fill the much-needed void in providing equity financing for early stage IT and life sciences companies. His network will help attract additional opportunities that have the potential to add significant value to the investment banking department within Capital Investment Companies.
Bryant has weathered the market storms and thus, has attracted some of the best advisors in the business. Brooks can only add to Capital Investment's growing and experienced brokerage force. With a platform of diverse services and assets, and a strong Southeast focus, they are competitive with major New York warehouses.
A truly powerful combination - Bryant, Edgerton and Brooks - hope to provide a network that will build a portfolio of $1 billion over the next five years. Edgerton is a hidden gem, especially as the economy faces challenging times. As a contrarian value manager, he is attracting significant money as investors look for "true" bargains in the market. A trio of such experienced operators is a testament of their commitment to the Triangle Region. They could all act alone, but they recognize the value that each brings to the table. The true spirit of entrepreneurism is alive and well at Capital Investment Companies and these three gentlemen are setting the example.
