36
Item 15: Custody ....................................................................................................................... 37
Item 16: Investment Discretion .................................................................................................. 38
Item 17: Voting Client Securities ................................................................................................ 39
Item 18: Financial Information ................................................................................................... 40
A.
Balance Sheet ............................................................................................................. 40
B.
Financial Conditions Reasonably Likely to Impair Advisory Firm’s Ability to Meet
Commitments to Clients .............................................................................................. 40
C.
Bankruptcy Petitions During the Past Ten Years ........................................................... 40
A. Optimal Capital Advisors, LLC
Optimal Capital Advisors, LLC (“Optimal Capital” and/or the “firm”) is a registered investment
advisor with the U.S. Securities and Exchange Commission (“SEC”) and is organized as a limited
liability company (“LLC”) under the laws of the State of Michigan. Optimal Capital was founded
in April 2006 and is owned and operated by Joseph Batcha (Founder & CIO). This Disclosure
Brochure provides information regarding the qualifications, business practices, and advisory
services provided by Optimal Capital.
B. Advisory Services Offered
B.1. Investment Management Services
Optimal Capital conducts business under the wholly owned affiliates of Optimal Family Office,
Optimal Advisor Partners, and Optimal Private Capital. Optimal Capital serves as Managing
Member of certain private investment vehicles described in Item 10 of this brochure.
Optimal Capital provides investment management services on a discretionary basis according to
the investment objectives of the client and in accordance with the terms and conditions of the
investment advisory agreement between Optimal Capital and the client. Based upon the client’s
stated investment objectives, Optimal Capital’s investment management constructs portfolios
utilizing a dynamic blend of strategic and tactical asset allocation, as described in item 8 of this
brochure.
For its discretionary asset management services, Optimal Capital receives a limited power of
attorney to effect securities transactions on behalf of its clients that include securities and
strategies described in Item 8 of this brochure. Based upon these portfolios, Optimal Capital will
invest client’s accounts in certain percentages amongst numerous asset classes (e.g. global
stocks, global bonds, commodities, private funds and related securities).
In addition to providing Optimal Capital with information regarding their personal financial
circumstances, investment objectives and tolerance for risk, clients are obligated to provide the
firm with any reasonable investment restrictions that should be imposed on the management of
their portfolio, and to promptly notify the firm in writing of any changes in such restrictions or in
the client's personal financial circumstances, investment objectives, goals and tolerance for risk.
On a quarterly basis, Optimal Capital’s reports to clients will remind clients of their obligation to
inform the firm of any such changes or any restrictions that should be imposed on the
management of the client’s account. Optimal Capital will also contact clients at least annually to
determine whether there have been any changes in a client's personal financial circumstances,
investment objectives and tolerance for risk.
B.2. Consulting and Financial Planning Services
Optimal Capital provides its clients with financial planning and consultation services, which
include but are not limited to the following:
▪ Review of goals and objectives
▪ Analysis and recommendations for cash flow planning
▪ Asset allocation/investment planning
▪ Income tax planning
▪ Wealth protection
▪ Estate planning
▪ Retirement planning
▪ Education planning
▪ Real estate/mortgage planning
▪ Succession and liquidity event planning
▪ Adaptive income distribution
▪ Charitable giving
▪ Foundation management
Optimal Capital gathers required information through in-depth personal interviews and
questionnaires. Information gathered includes a client's current financial status, investment
objectives, future goals, and attitudes toward risk. Related documents supplied by the client are
carefully reviewed, and a report is prepared covering one or more of the above-mentioned
topics as directed by the client.
B.3. Sub-Advisory Services
Optimal Capital provides advisory services acting as a sub-adviser to private funds selected by
third-party advisors on behalf of their clients.
B.4. Orion Services
Optimal Capital utilizes Orion Advisor Services, LLC (“Orion”), a third-party vendor that provides
multi-custodial household reporting, billing, trading, planning, compliance and client portal
software and services for the benefit of Optimal Capital and its clients.
B.5. Optimal Alternative Titans
Optimal Capital offers, through its Optimal Alternative Titans program, a diversified suite of
hedge funds available through a hedge fund platform sponsored by Crystal Capital. Optimal
Capital selects and allocates amongst the managers available on the Crystal Capital platform
based upon the client’s individual needs and circumstances. Crystal Capital provides
research, due-diligence, analytical, and administrative support.
Clients will receive disclosure documents for each hedge fund in which they are interested in
investing as well as be required to complete and sign a subscription document prior to
investing. There are strict minimum investor qualifications and minimum investment criteria that
apply. See Item 7 of this Brochure for additional conditions. In addition, please review applicable
disclosure and subscription documentation of the hedge funds made available through Crystal
Capital’s hedge fund platform.
B.6. Corporate Consulting Services
Optimal Capital may enter consulting arrangements with private companies, some of which may
entail investment opportunities for Optimal Capital and its clients. See Item 10.C.5 of this
brochure for additional disclosure regarding such arrangements. These consulting services
generally include the provision of guidance on business, organic growth opportunities, industry,
and strategy issues on an as-needed basis, including but not limited to acquisitions and general
market analysis of the applicable industry and any legislative issues involving same.
C Client-Tailored Services and Client-Imposed Restrictions
Each client’s account(s) will be managed on the basis of the client’s financial situation and
investment objectives and in accordance with any reasonable restrictions imposed by the client
on the management of the account—for example, restricting the type or amount of security to
be purchased in the portfolio.
D Wrap Fee Programs
Optimal Capital does not currently act as a portfolio manager to advisers on wrap program
platforms.
E Client Assets Under Management
As of December 31, 2023, Optimal Capital managed $ 116,624,038 of discretionary client
assets and $0 of non-discretionary client assets.