THE STORY OF CAPIS: PIONEERS IN COMMISSION MANAGEMENT

Capital Institutional Services, Inc. (CAPIS) was founded by Don Potts in 1977. Born out of the deregulation of brokerage commissions in the mid 1970s, CAPIS was a pioneer in creating the unbundled independent research model.

Don's vision was to create an alternative to the traditional bundled research model. He believed that independent, third-party research provided more value than bundled, proprietary research and was ultimately better for investors. Through this transparent model, managers and their clients knew exactly what they were paying for.

As managers learned of the ability to receive independent research through client commissions, CAPIS' business began to grow and additional asset classes were added to CAPIS' offering. In 1982, our bond desk was opened in New York. We were one of the first brokers to offer research credit on fixed income trades. And in 1998, CAPIS opened an international trading desk in London.

Over the years, our business model has faced many regulatory challenges. And with each challenge, CAPIS' model of providing independent research with client commissions has proven to be a completely transparent practice that benefits investors.

Today, CAPIS remains one of the few independent agency brokers. As a legacy to Don's vision over 35 years ago, his daughter, Kristi Wetherington, President and CEO, continues to guide the firm based on the principals upon which it was founded.

While a contrarian idea at the time, Don's determination and entrepreneurial spirit enabled him to start and grow his firm, compete against the Wall Street brokerages, and create a successful family business that continues to prosper today.

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