In December, the closure of Citi’s public finance division marked a significant turning point not only for the firm but also for the entire municipal finance landscape. While many bankers swiftly transitioned to new roles, Archana Chandrasekhar chose a different path, opting to take a step back and contemplate her career trajectory. After dedicating 16 years of hard work in a high-pressure environment, Chandrasekhar’s decision to temporarily halt her rapid career pace allowed her to engage in a self-reflection process that ultimately led to a new venture.
Chandrasekhar’s introspection revealed a diverse skill set that encompassed both high-grade securities and complexities in project finance. Her extensive experience at Citi, particularly her work in higher education, healthcare, and social infrastructure, rendered her adept at navigating multifaceted transactions. By specializing in intricate deals—those that transcended conventional municipal finance—she found herself increasingly passionate about the project aspect of these ventures. Her desire to expand her knowledge in this area catalyzed the formation of a new investment firm, Full Moon Capital.
The establishment of Full Moon Capital represents a strategic pivot toward addressing the investment needs of specialized institutions such as colleges and hospitals. With a targeted approach, the firm is poised to focus on smaller and mid-sized educational and healthcare facilities often neglected by larger investment banking institutions. Chandrasekhar identified a crucial gap in the market—a gap where highly rated credit institutions faced significant growth opportunities despite lacking the necessary capital to realize those ambitions.
By concentrating on niche sectors within the municipal market, Full Moon Capital aims to capitalize on investment potentials that have remained under the radar for larger financial players. The firm plans to engage in various projects, including student housing, workforce accommodations, and energy facilities, catering to institutions aiming to offload their financial risks. This targeted investment model opens avenues for collaboration with developers, enabling Full Moon Capital to assemble comprehensive financing solutions tailored to the peculiarities of each project.
The foundation of Full Moon Capital is reinforced by a robust leadership team comprised of seasoned professionals from Rieth Jones Advisors. This collaboration brings a wealth of expertise encompassing market analysis, design, construction, finance, and operations. Chandrasekhar’s dual role as a managing director at RJA and founder of Full Moon Capital illustrates her commitment to both strategic vision and practical implementation. She is set on amplifying her impact in higher education, healthcare, and municipal finance through collaborative efforts and workforce synergy.
Chandrasekhar emphasizes that the investment opportunities are abundant in the realm of specialty schools and smaller hospitals, despite the challenges facing many private colleges. She predicts that, contrary to the trend of declining enrollments, there exist numerous strong credit institutions eager for support and capable of growth. The goal is to bridge the funding gap for these institutions that are often overlooked due to their size or specialization, thereby unlocking their potential for sustained growth.
Intriguingly, Chandrasekhar points to a significant volume of capital that currently remains untapped within the realm of social infrastructure projects. Reports suggest that a substantial portion—potentially one-third to one-half—of off-balance-sheet projects at universities and hospitals are financed through equity. This opens the door for various investors, including institutional and retail investors, as well as family offices, who are increasingly inclined to invest in socially impactful real estate developments.
The closure of Citi’s public finance division is not merely a tale of loss but a narrative ripe with opportunity. Chandrasekhar’s evolution from a seasoned banker to an innovative investor highlights the potential for specialized investment strategies that address the unique needs of smaller educational and healthcare institutions. By leveraging her skills and insights within this niche market, Chandrasekhar is poised to make significant contributions to the future of public finance—one project at a time.