Dublin, Ohio --- Cornerstone Capital's core companies are into their eleventh year of business, says Andrew E. Kraus, Managing Director of Cornerstone Capital Corporation.
"We incorporated the main Cornerstone entities in the end of 1998, so we are into our eleventh year of business already. The time has passed more quickly than I imagined it would, but that is usually the case anytime you are as busy as we have been," Kraus said.
Kraus and Cornerstone Capital's CEO Peter Paras, Jr. worked together in real estate investment banking at Banc One Capital before they developed a plan to create Cornerstone Capital.
Paras and Kraus decided that Cornerstone Capital would be a great vehicle to deliver sophisticated debt and equity capital to the market, particularly in the real estate arena, after Bank One merged with First Chicago in 1998. Starting Cornerstone was not without risk, but Paras and Kraus had banking and finance experience and the support of some strong investors. Cornerstone started with the some of the same basic capabilities its principals exercised at Banc One Capital.
Cornerstone Capital provided structured finance, credit tenant lease lending, private placements and equity positions in sale leasebacks from day one. After its first year, Cornerstone Capital had successfully established its regulated securities firm and set up Cornerstone Funding Corporation for commercial paper funding. Soon after that, Cornerstone Capital completed its first equity investments and joint venture transactions. Sale-leaseback transactions, lending, securitization and related activities continued to keep the principals of Cornerstone busy while it expanded its acquisition and principal investment activities. Expanding into real estate development complemented the sale-leaseback, real estate financing and real estate acquisition activities at Cornerstone Capital. Principal investment in and acquisition of businesses, particularly those that are finance dependent or real estate intensive, provided further growth of opportunity for Cornerstone Capital.
"We have been able to broaden and deepen our business capabilities over this decade," said Kraus, "and we look to continue such expansion to increase our success in the future."