Veteran investment executive Stephen Gibson has joined Eppler Capital Funds in Philadelphia as Managing Director. Both Eppler and Gibson worked together for 4 years at Wealth Enhancement Group (formerly Hoover Financial Advisors).
At Wealth Enhancement, Eppler and Gibson dramatically increased the use of private investments and alternatives and reduced traditional fixed income in client accounts. That strategy proved timely in 2022, when bond indexes posted a historic loss of more than 15%. Based on that success, Craig Eppler founded Eppler Capital Funds in early 2023.
The fund is aimed at forming a collection of diversified, small niche income sources. Eppler Capital Funds offers this portfolio to private accredited investors. Accredited investors are individuals earning $200,000 or more, and/or couples earning $300,000 or more, and/or with a household net worth of $1 million, excluding primary residence.
The past five years have seen an explosion in private income investing, as changes to interest rates by the Federal Reserve have created volatility previously unseen in fixed income. An array of giant investment managers like Fidelity, Blackrock, and J.P. Morgan have acquired and expanded their alternative income products. In general, alternative investments now outnumber traditional mutual funds and ETF offerings.
The large investment firms have experienced rapid growth, but, due to their size, they must derive income from mid-size and large companies only. That size may lead to lower returns than smaller companies can offer. Eppler is specifically targeting smaller-sized firms and is offering the fund in a unique Promissory Note form.
“At WEG, Stephen and I teamed up to transform client portfolios by adding lower-correlation private income assets. The expectation is that stocks may face resistance due to high valuations, and bond funds seem to vary based on Fed policy. Our offerings may offer high income with a new source of diversification,” said to Craig Eppler, Founder and CEO of Eppler Capital Funds. “Many advisors are not comfortable with private investments, and only offer stock and bond funds. We believe that holding meaningful private assets is a key to achieving most financial plans.”
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