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Allegiancy Files $50 Million Offering Under New Reg A+ Rules

Allegiancy, a commercial real estate asset management firm based in Richmond, Virginia, filed a $50 million offering with the Securities and Exchange Commission under the new Reg A+ rules.

Allegiancy will use the capital to make significant investments in its proprietary technology platform, consummate new acquisitions and expand its employee base to handle the intended growth.

“A new era of the democratization of capital is here and for Allegiancy we are poised to be at the forefront of this financial revolution,” said chief executive officer Steve Sadler. “We have charted a bold future at Allegiancy and have worked vigorously toward today’s filing, which we believe is just the start of a rapid acceleration of our proven business model.”

Under the 2012 Jumpstart Our Business Startups Act, or JOBS Act, companies can raise up to $50 million in equity from investors — including non-accredited investors — under what’s known as the new “Reg A+” rules. Previously, companies were limited to raising $5 million under the past Regulation A rules.

Last year, Allegiancy benefited from a $5 million capital raise under Regulation A prior to the new rules becoming effective. The injection allowed the company to roll out programs to accelerate organic growth and doubled in size. In June, Allegiancy doubled its assets under management again when it closed its first portfolio asset management transaction with a Houston, Texas firm.

With the new capital, the company intends to acquire additional companies, secure asset management contracts, hire employees and continue to improve its proprietary technology for property owners and investors.

Last month, The DI Wire reported that the company appointed Dennis Irvin, the former chief executive officer of the Rockefeller Group, to its board of directors

Allegiancy is an asset management firm for commercial real estate owners and investors with a technology-enabled operating platform and focus on serving as the owners’ advocate. Since 2014, the company has expanded its assets under management by 400 percent with a combination of organic growth and corporate acquisitions.