Representing the Asset-Based Financing, Factoring & Supply Chain Finance Industries Worldwide Oct 18
The Risk Issue IN THIS ISSUE
FRAUD – THE OTHER “F” WORD – AN ILLUSTRATIVE AND CAUTIONARY TALE P12 THE EVOLVING NATURE OF RISK MANAGEMENT P14 UNDERSTANDING THE EVOLVING RETAIL LANDSCAPE P18 FEDERAL COURT IN NEW YORK ENFORCES “FLOATING” FORUM SELECTION CLAUSE P22
TSL INTERVIEW
D. MICHAEL
MONK
DISCUSSES HIS YEAR AS CFA PRESIDENT P26 THE 5 Cs OF TACTICAL RISK MANAGEMENT P24 DEPARTMENTS COLLATERAL CFA ANNUAL EXHIBITOR GUIDE WHAT WOULD YOU DO? THE CFA BRIEF
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They executed our deal with the kind of precision we need in the middle-market lending space. Howard Widra, Partner, Apollo Capital Management, L.P., and David Moore, Chief Financial Officer, MidCap Financial
WHOLESALE BANKING ASSET-BASED LENDERS FACTORS EQUIPMENT LEASING AND FINANCE COMPANIES OTHER SPECIALTY FINANCE COMPANIES
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Š 2018 Wells Fargo Capital Finance. All rights reserved. Wells Fargo Capital Finance is the trade name for certain asset-based lending services, senior secured lending services, accounts receivable and purchase order finance services, and channel finance services of Wells Fargo & Company and its subsidiaries. IHA-5315402
NOVEMBER 7-9, 2018 | MARRIOTT MARQUIS SAN DIEGO MARINA
CFA’s 74th Annual Convention
CFA
74
Top-Speakers Announced
FRIDAY LUNCH SPEAKER:
THURSDAY KEYNOTE SPEAKER:
THURSDAY LUNCH SPEAKER:
Beth Comstock, Former Vice Chair of GE
Robert Wescott, Ph.D, President, Keybridge
Brian Smith, Author of The Birth of a Brand and Founder of UGG®
CFA's Women in Commercial Finance are pleased to present Beth Comstock, former Vice Chair of GE and the first woman to ever hold that post. Over her career, Beth was responsible for leading innovation and change while building GE's global brand. She operated GE Business Innovations, which developed new businesses, markets and service models; and, as Chief Marketing officer, created GE's "Ecomagination" initiative and partnered to enhance GE's inventive culture. As President of Integrated Media at NBC Universal, she led the company's digital efforts, including the founding of Hulu. Beth was twice named by Forbes as one of "The World's 100 Most Powerful Women".
To date in 2018, the American economy has been posting impressive growth and it seems to have the wind at its back. But where is the U.S. economy heading in 2019, and what risks might be lurking around the corner? In this presentation, Dr. Robert Wescott, President of Keybridge, will lay out his views for the U.S. economy and financial markets in 2019, including his expectations for consumer spending, business fixed investment, corporate profits, inflation, and labor markets. Wescott also will explore key policy risks that he thinks financial markets need to pay attention to, including the risks of a trade war and the risks of potentially faster increases in interest rates in 2019 than markets are currently anticipating. In particular, he will share his views about the possible implications for the corporate debt market. Finally, Wescott will mention the “R” word and discuss the possibilities for a recession in 2019—including possible causes and consequences.
Brian Smith is Australian born and was raised with an enduring passion for surfing and the surf culture. After ten years as a public accountant, Brian felt a burning desire to do something that would fit his passion for surfing while looking for a business idea that would allow him to support himself. He turned in his resignation notice, got on a plane to the States, and became a regular at the classic surfing destinations up and down the southern California coastline. He called Malibu, Cardiff-by-the-Sea, and Swami’s Beach his “office.”
Who better to kick off our dialogue about disruption, innovation and the future of our industry than someone who has been at the center of such transformation? Beth Comstock navigates change. She prepares for it, inspires it, and considers it an essential part of the growth of individuals, organizations and industries.
Hear the incredible story of how his "office" lead to the idea of UGG® Boots, and how a $500 loan, plus undefeatable persistence, led to the UGG® brand exceeding $1 billion of international sales several times over.
YEAR AFTER YEAR THE CFA ANNUAL BRINGS TOP THOUGHT LEADERS, REGULATORS AND BUSINESS INNOVATORS TO BRING FOCUS TO THE OPPORTUNITIES AND CHALLENGES AHEAD, THE 74TH ANNUAL WILL BE NO DIFFERENT. With over 1,000 professionals involved in asset-based lending, factoring, appraisals/auctions/liquidations, software development, law, accounting, insurance, turnaround management, field examinations, search, filing and document retrieval coming together, our Annual Convention is a prime opportunity to network with your peers, learn about the newest industry trends, and develop new connections across the industry. The event takes place Nov. 7-9, 2018, at the Marriott Marquis San Diego Marina. Visit community.cfa.com/annual to see panel topics, activities and to register.
CFA’S 74TH ANNUAL CONVENTION: NAVIGATING CHANGE
REGISTER NOW AT WWW.CFA.COM
Volume 74, Issue 7
October 18
Representing the Asset-Based Financing, Factoring & Supply Chain Finance Industries Worldwide
Table of Contents 12 Fraud – The Other “F” Word – An Illustrative and Cautionary Tale Richard Haddad of Otterbourg P.C. recounts a case of fraud and the red flags every lender should keep in mind . By Richard Haddad
10
14 The Evolving Nature of Risk Management
Damon Dickens of Sallyport Commercial Finance discusses how technology can assist lenders in risk mitigation. By Damon Dickens
18 Understanding the Evolving Retail Landscape and the Need for Asset-Based Lending
Joe Nemia of TD Bank discusses the fast-paced changes in retail and how lenders can work with retailers to weather the frequent storms. By Joseph Nemia
22 Federal Court in New York Enforces “Floating” Forum Selection Clause
14 18
A federal judge in New York recently analyzed a “floating” forum selection clause under both federal and New York state law, and held that the clause was enforceable by an assignee against a Texas lessee with no ties to New York. By Marc Hamroff, Esq. and Robert Tils, Esq.
24 The 5 Cs of Tactical Risk Management Richard Hawkins of Atlantic Risk Management walks readers through the 5Cs of Tactical Risk Management, including Collateral, Cash, Conditions, Circumstances and Character. By Richard Hawkins
26 26 D. Michael Monk Discusses His Year as CFA President CFA’s 2018 president, D. Michael Monk, has been managing partner of Amerisource Business Capital since 1998. He has over 25 years of experience including senior leadership roles covering virtually all aspects of the commercial finance field, including credit, underwriting, legal, compliance, operations management, portfolio risk management, business development, marketing and public relations. He is also a past president of CFA’s Houston Chapter and currently serves on its board of directors. He is past president of the Houston Racquet Club. He also sits on a number of other private boards of directors and is involved with numerous trade associations and charitable organizations. By Michele Ocejo
DEPARTMENTS 6
Letter From Richard D. Gumbrecht, CEO of the Commercial Finance Association, discusses managing risk and navigating change.
8
Collateral The latest issues affecting the ABL and factoring industries, including company news and personnel announcements.
29 CFA Annual Exhibitor Guide 40 What Would You Do? In this edition of What Would You Do?, a borrower of Overadvance Bank requests that the Bank waive an event of default arising from the borrower obtaining a secured term loan without the Bank’s prior consent.
42 The CFA Brief 42 53 55
Among CFA Members CFA Chapter News Calendar
56 Advertisers Index
STAFF & OFFICES Michele Ocejo Editor-in-Chief & CFA Communications Director Eileen Wubbe Senior Editor Aydan Savaser Art Director
Editorial Offices 370 Seventh Avenue Suite 1801 New York, NY 10001 (212) 792 -9390 Fax: (212) 564-6053 Email: tsl@cfa.com Website: www.cfa.com
Advertising Contact: James Kravitz Business Development Director T: 646-839-6080 jkravitz@cfa.com
The Commercial Finance Association is the trade group for the asset-based lending arms of domestic and foreign commercial banks, small and large independent finance companies, floor plan financing organizations, factoring organizations and financing subsidiaries of major industrial corporations. The objectives of the Association are to provide, through discussion and publication, a forum for the consideration of inter- and intra-industry ideas and opportunities; to make available current information on legislation and court decisions relating to asset-based financial services; to improve legal and operational procedures employed by the industry; to furnish to the general public information on the function and significance of the industry in the credit structure of the country; to encourage the Association’s members, and their personnel, in the performance of their social and community responsibilities; and to promote, through education, the sound development of asset-based financial services. The opinions and views expressed by The Secured Lender’s contributing editors and authors are their own and do not necessarily express the magazine’s viewpoint or position. Reprinting of any material is prohibited without the express written permission of The Secured Lender. The Secured Lender, magazine of the assetbased financial services industry (ISSN 0888255X), is published 8 times per year (Jan/Feb, March, April, May, June, September, October and November) $65 per year non-member rate, and $100 for two years non-member rate, CFA members are complimentary, by Commercial Finance Association, 370 Seventh Avenue, New York, NY 10001. Periodicals postage paid at New York, NY, and at additional mailing offices. Postmaster, send address changes to The Secured Lender, c/o Commercial Finance Association, 370 Seventh Avenue, New York, NY 10001.
w
letter from THOUGHTS FROM CFA AND TSL STAFF
elcome to the Risk Issue of The Secured Lender. We in the secured lending and fi nance community are in the business of managing risk, of seeing around corners and fi nding ways to deploy the capital that fuels our engines of commerce. The skill and creativity with which we do so sets our industry apart from others and helps us continue to grow and thrive. The theme of this year’s Annual Convention, November 7-9, in San Diego is “Navigating Change”. We make a living finding solutions to the things that keep us up at night, which is why we’re excited to introduce, in conjunction with the Annual, an all-new members-only, roundtable interactive event targeted to mid-upper level professionals in distinct operating disciplines. Unlike other panel-discussion format meetings, this highly focused deepdive will feature peer-to-peer interactive conversations on relevant, high-impact issues moderated by leading experts. With five distinct tracks, a general session keynote speaker, a luxury yacht reception cruise with the CFA’s Board of Directors and countless crucial conversations, the CFA Idea Exchange is sure to be one of the most productive and memorable industry events of the year. Contact Kayla
Stypulkoski at kstypulkoski@cfa.com for more details. And speaking of navigating change, in June we announced that CFA’s Executive Committee unanimously decided to invest in rebranding the CFA. The decision to re-envision the CFA name and logo including our messaging and approach to visual expression between now and the Association’s 75th Annual Convention in NYC in 2019 reflects the board’s objective to make the CFA brand more relevant to its members and to ensure that the brand reinforces our strategic direction. We thank all of you who participated in the Rebranding Survey over the summer. Your feedback will create the foundation for CFA’s new image. Consistent with our rebranding efforts and to better understand the scope and impact of our industry, our Education Foundation has commissioned Ernst and Young to lead a comprehensive Market Sizing and Impact Study which commenced this month and will be completed in the fall. The findings of the landmark project will help us with advocacy, strategic planning and benchmarking and attracting capital. On the education front, CFA recently held its first ever Advanced Underwriting Workshop which was very well attended. Students learned invaluable lessons to assist them in making better credit decisions. The course examined current trends in the changing retail industry, and how to structure around some of the pitfalls when lending to retailers as well as the practical and legal perspectives of lending on in-transit inventory. Coming up next is CFA’s Factoring Fundamentals, November 27 to December 13, which is a distance learning program comprising six virtual workshops. Each “essential”
workshop provides a solid grounding of knowledge on a specific aspect of factoring. In these pages we’ll explore many dimensions to managing risk. To kick it off, Richard Haddad of Otterbourg P.C. recounts a case of fraud and the red flags every lender should keep in mind in Fraud: The Other “F” Word – An Illustrative and Cautionary Tale, on page 10. On page 14, in The Evolving Nature of Risk Management, Damon Dickens of Sallyport Commercial Finance discusses technology’s role in risk mitigation. On page 18, Joe Nemia of TD Bank discusses the fast-paced changes in retail and how lenders can work with retailers to weather the frequent storms, in Understanding the Evolving Retail Landscape and the Need for Asset Based Lending. A federal judge in New York recently analyzed a “floating” forum selection clause under both federal and New York state law, and held that the clause was enforceable by an assignee against a Texas lessee with no ties to New York. Marc Hamroff, Esq. and Robert Tils, Esq. provide readers with the details on page 22. Richard Hawkins of Atlantic Risk Management walks readers through the 5Cs of Tactical Risk Management, including Collateral, Cash, Conditions, Circumstances and Character on page 24. On page 26, don’t miss the interview with CFA’s 2018 president, D. Michael Monk, who discusses his tenure and CFA’s achievements in the past year. I hope to see many of you at CFA’s Annual Convention in San Diego, November 7-9.
“Consistent with our rebranding efforts and to better understand the scope and impact of our industry, our Education Foundation has commissioned Ernst and Young to lead a comprehensive
6
Market Sizing and Impact Study which commenced this month
Warm regards,
and will be completed in the fall.”
Richard D. Gumbrecht CFA CEO
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collateral INDUSTRY NEWS
THE INDUSTRY IN BRIEF
8
Bank Leumi Establishes AssetBased Lending Business, Appoints Mark Fagnani as Head Bank Leumi USA announced that it has hired Mark Fagnani to head its new asset-based lending (ABL) business, which will be based in its New York headquarters. In this role, Fagnani will be responsible for leading the establishment and growth of this critical business, including building a successful team that will have national client coverage. “Hiring Mark is a natural step for Bank Leumi as we continue to build the best boutique, relationship-driven bank for entrepreneurs,” stated Shawn McGowen, head of Commercial Banking. “Mark is a proven leader with unparalleled industry experience who will grow our Asset-Based Lending business and strengthen our client relationships throughout the country.” Fagnani worked for Congress Financial and its successor companies, First Union Business Credit, Wachovia Capital Finance and Wells Fargo Foothill (now known as Wells Fargo Capital Finance), for more than 30 years. During this period, Fagnani held a number of senior roles, including chief credit officer where he chaired the senior credit committee and helped manage $24B in commitments with more than 650 separate borrowers. He also helped to establish HVB Capital, a subsidiary of Hudson Valley Bank, and EverBank Business Credit, where he launched the firm’s Healthcare ABL practice. Fagnani earned his BBA in accounting and finance at Baruch College. Leumi’s Commercial Banking division specializes in serving select industries, products and asset types in the U.S. middle-market, including healthcare, media and entertainment, high tech, apparel and real estate. Its bankers focus on market areas with the most growth potential and work closely with a diverse roster of clients in each sector to develop custom solu-
tions that best support their business needs. Bank Leumi USA (Leumi) is a fullservice commercial and private banking institution providing financial services to middle-market firms, as well as a full range of private banking solutions to domestic and international clients. Leumi also offers a broad range of securities and insurance products through its brokerage subsidiary, Leumi Investment Services Inc.
CIT Names Chief Underwriting Officer for Commercial Finance CIT Group Inc. (NYSE: CIT) announced it has named Christopher M. McLaughlin as chief underwriting officer for the company’s Commercial Finance division. In his new role, McLaughlin is responsible for leading a team of underwriters and portfolio managers across a wide range of business segments, including healthcare, energy, capital markets, maritime, aerospace, entertainment and media, sponsor finance, commercial and industrial, communications and technology, asset-based lending and syndications. He will be based in Manhattan. “We are pleased to welcome Chris to CIT’s Commercial Finance team as we continue to focus on managing risk while pursuing growth opportunities,” said Jim Hudak, president, Commercial Finance. McLaughlin joins CIT from Capital One N.A., where he has worked in middle-market banking in positions of increasing management responsibility since 2009. His most recent role was as head of underwriting and portfolio management for middle-market banking. Earlier in his career, McLaughlin led underwriting teams at Merrill Lynch Commercial Finance Corp. and
DON’T MISS CFA’S ANNUAL CONVENTION IN SAN DIEGO, NOV. 7-9, WWW.CFA.COM
worked as a risk manager and underwriter at First Union National Bank. CIT’s Commercial Finance division provides lending, leasing and treasury management services to middlemarket businesses nationwide. The division’s core strength is leading complex transactions that demand deep industry knowledge and customized solutions to deliver successful results. Founded in 1908, CIT (NYSE: CIT) is a financial holding company with approximately $50 billion in assets as of June 30, 2018. Its principal bank subsidiary, CIT Bank, N.A., (Member FDIC, Equal Housing Lender) has approximately $30 billion of deposits and more than $40 billion of assets. CIT provides financing, leasing, and advisory services principally to middlemarket companies and small businesses across a wide variety of industries. It also offers products and services to consumers through its Internet bank franchise and a network of retail branches in Southern California, operating as OneWest Bank, a division of CIT Bank, N.A. cit.com.
Blank Rome Welcomes Experienced Corporate Finance Partner in Los Angeles Blank Rome LLP is pleased to announce that Shadi Enos Jahangir has joined the firm as a partner in the Finance, Restructuring, and Bankruptcy group and Financial Services industry team in the Firm’s Los Angeles office. At Blank Rome, Enos Jahangir’s practice will focus primarily in the areas of commercial lending and corporate finance. She joins Blank Rome from Buchalter where she was a shareholder in the Bank and Finance Law group. “Shadi is an accomplished and respected finance attorney with tremendous experience in asset-based
step in my career and to be joining such an elite group of attorneys at Blank Rome,” said Enos Jahangir. “I’m impressed by the firm’s collaborative approach to client service and the growth they have achieved over the past several years. I look forward to working with my new colleagues in the finance group and across all of the firm’s practices and offices to provide exceptional counsel to my clients.” Outside of her successful practice, Enos Jahangir serves on the board of The Financial Lawyers Conference and as editor of the Commercial Law Newsletter for the American Bar Association. She is also a member of the “Knowledge Central” subcommittee for the Commercial Finance Association. Additionally, Enos Jahangir serves as a member of the board of directors for The Center in Hollywood. Enos Jahangir earned her J.D., magna cum laude, at Loyola Law School where she was Order of the Coif. While in law school, she was an articles editor for the Loyola of Los Angeles Law Review, a Sayre MacNeil Scholar, and a recipient of the Eleanor Klein Merit Award presented by the Law Guild of Beverly Hills. She also served as a judicial extern in the U.S. District Court for the Central District of California. Shadi received her B.S., summa cum laude, in mathematics and economics from the University of California, Los Angeles. Blank Rome is an Am Law 100 firm with 13 offices and more than 600 attorneys and principals who provide comprehensive legal and advocacy services to clients operating in the United States and around the world. Our professionals have built a reputation for their leading knowledge and experience across a spectrum of industries, and are recognized for their commitment to pro bono work in their communities. Since our inception in 1946, Blank Rome’s culture has
been dedicated to providing top-level service to all of our clients, and has been rooted in the strength of our diversity and inclusion initiatives. www. blankrome.com.
Dan Tortoriello Takes on EVP Role at Gemino Healthcare Finance
INDUSTRY NEWS
lending and leveraged cash flow lending in the areas of technology and software, healthcare and life sciences, solar and renewable energy, and the wine industry,” said Lawrence F. Flick II, chair of Blank Rome’s Financial Services industry team. “Her practice will be an excellent complement to both our finance group and our Los Angeles office.” Enos Jahangir represents financial institutions, leading private equity sponsors, and corporate borrowers in middle-market debt financing and investment-grade credits. Her experience includes widely syndicated club and single-lender representation in connection with cross-border financings, restructurings, acquisition financings, recapitalizations, traditional asset-based lending facilities, and debt financings for technology companies. She represents clients in senior-secured, first-lien/second-lien, mezzanine, unitranche, and unsecured financing transactions. “Our finance group continues to experience steady and strategic growth across the country—most recently with the additions of Stephen Brodie and Julie Carvalho in our New York office,” said Alan J. Hoffman, Blank Rome’s chairman and managing partner. “Shadi has an excellent reputation and is highly regarded by a number of our clients in California and throughout the country. We’re thrilled to welcome her to our Blank Rome team on the West Coast.” In recognition of her professional achievements, Enos Jahangir was presented with the Commercial Finance Association’s inaugural 40 Under 40 award in 2016. Blank Rome Partner Heather Sonnenberg received the same award that year, followed by Blank Rome Of Counsel Kevin O’Malley in 2017. “I’m incredibly excited for this next
While continuing his role as executive vice president and chief operating officer at North Mill Capital, Tortoriello will also now be taking on the role of executive vice president at Gemino Healthcare Finance. “I look forward to the opportunity to work with a veteran staff at Gemino who has been working together in the healthcare field for over 15 years”, said Dan Tortoriello. “We will now look into expanding our new business endeavors to include asset-based lending facilities from $1 million to $20 million on a national basis at Gemino while continuing to grow North Mill Capital.”
THE SECURED LENDER OCTOBER 2018 9
Fraud
{The Other “F” Word} An Illustrative and Cautionary Tale BY RICHARD HADDAD Richard Haddad of Otterbourg P.C. recounts a case of fraud and the red flags every lender should keep in mind.
10
DON’T MISS CFA’S ANNUAL CONVENTION IN SAN DIEGO, NOV. 7-9, WWW.CFA.COM
An asset-based lender’s recurring nightmare is learning that a longstanding borrower, who never missed a payment, begins to act strangely and, upon closer examination, it is discovered that the borrowing base reporting is false, the inventory is non-existent, and the receivables fictitious. This is the story of one such event: the discovery; the attempted cover-up; the short and aggressive litigation; and the “friend of the borrower” bail-out resolution. What you are about to read is “true.” The names have been omitted to protect the innocent … and the guilty. Dramatis Personae 1. The Lender: An established middlemarker lender with extensive ABL experience. 2. The Borrower: An importer and wholesale distributor of home goods. 3. The Principal: The Borrower’s CEO and operator of the business, who also guaranteed the loan. 4. The Relative: A relative of the Borrower’s Principal, who operated a similar business, financed by a different lender – out of the same warehouse [Red Flag #1]. 5. The Field Examiner: A well-known third-party field examiner. 6. The Loan Structure: Fairly typical asset-based revolver; mid-sevenfigure line; borrowing base with a percentage of eligible inventory and accounts receivable; first liens on all assets; guaranteed by Borrower’s Principal. By all intents and purposes, this was a typical asset-based facility. Borrower imported the goods and sold them to national and regional retailers. The Borrower’s Principal ran the company and knows the customers and the suppliers. Invoices were issued and paid. Interest was paid. So, what happened? The problems began to surface during a regularly scheduled field examination. The Borrower and its Principal
manipulated and attempted to control the exam, which only led to a more thorough investigation and intervention by Lender, the Field Examiner and Lender’s counsel. That investigation revealed a widespread inventory and receivable fraud; and a clumsy attempt at a cover-up. The Borrower had a long record of asset-based financing, with Lender and prior banks, so Borrower knew (or thought it knew) what to expect from a field exam, and how the Lender would count the collateral and apply collections. This time, it was different. As the Field Examiner began to perform his tasks, he noticed a lack of cooperation and delays in getting the requested information. He also faced a Borrower that wanted to control the exam itself – participate in the phone verifications with account debtors and select the inventory for test counting. When the Field Examiner persisted with his inquiries, he learned that the Principal had reported (falsely) that the Field Examiner had harassed a female employee of Borrower. This was all it took to get the Field Examiner re-assigned and bought the Borrower a number of days to try to “fix” its problems before another examiner could be assigned. As the exam eventually proceeded, the separate receivable and inventory scams were exposed. Phone Verifications The Borrower first tried to control the phone verifications of the receivables. Rather than the regular practice of having the Field Examiner select the receivables to verify and then call the account debtors, here the Principal: (a) refused to allow certain selected receivables to be verified, claiming that the relationship was too delicate to be verified [Red Flag #2]; (b) demanded that he (the Principal) make the calls himself and speak to the supposed customer while the examiner listened in from a phone in another office after the call was placed [Red Flag #3]. Not surprisingly, every call placed
THE SECURED LENDER OCTOBER 2018 11
by the Principal resulted in a “confirmation.” When the Field Examiner, separately and independently, along with the Lender, made calls to the accounts payable departments of these selected customers, they were repeatedly told by the customer that nothing was due and, in many cases, the customer either never did business or had long ago stopped doing business with the Borrower. Invoice Payments Tracing the cash payments provided more evidence of the lengths to which the Borrower went to cover its tracks. Looking behind the agings and reports to the actual items paid, the Lender saw numerous instances of cashier or bank checks being deposited and credited to receivables [Red Flag #4]. In one instance, the Lender was able to confirm that the bank check had been ordered by the Relative. Rarely would a legitimate customer pay an invoice with a bank or cashier’s check – and certainly not multiple customers. Test Count Interference / Inventory Overstatement The Field Examiner reported problems locating, identifying and counting the inventory. The additional days following the false report of harassment may have given the Borrower time to try to “fix” its warehouse because it had a list of the inventory that had been selected for the count. But the dogged efforts of the Field Examiner revealed several discrepancies. Many items had new labels slapped on boxes, covering up older labels [Red Flag #5]; some labels referenced product different from what was in the box [Red Flag #6]; some of the requested items were supposedly placed too high on the rack to be reviewed, and the forklift operator was “not available” [Red Flag #7]. Thereafter, random test counts showed discrepancies up to 74% per item [Red Flag #8]. The fact that the Relative had his similar inventory in the same warehouse [supra Red Flag #1] suggests that the entities may have been using the same inventory to secure loans from different banks.
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What Next? As soon as the Lender was able to assemble the information, it appeared clear that the Borrower was engaging in fraudulent borrowing and did not have sufficient collateral or cash flow to pay the loan in full. The Lender found itself in the unenviable position of non-existent receivables, commingled or nonexistent collateral, uncertain ability to collect on the Principal’s guaranty and a possible fight with another lender over the same set of inventory. The Lender terminated the facility and undertook an aggressive litigation strategy to let the Borrower and its Principal understand that they faced significant personal risks if arrangements were not made to pay or settle the loan – a borrower caught committing a fraud and facing litigation may be in a precarious position of having to spend money to defend claims while balancing the risk of getting in deeper trouble should the Principal commit perjury or have personal wealth at stake. The Lender took several steps: (a) Sue Borrower in the state where the warehouse is located – remedies include replevin of collateral; (b) move for a temporary retaining order and seizure of the collateral; (c) Simultaneously sue the Principal in the Lender’s home state on his guaranty; and (d) Seek expedited discovery to increase the pressure and get access to books, records and testimony at the earliest opportunity. Results Faced with the pressures of being caught, cut off from funding, litigating in multiple forums, likely implicating relatives and their business (as well as other collaborators, including the individuals conspiring to falsely confirm receivables), the Borrower sought help from “friends”. Within a short period of time an acquaintance from the Principal’s community, with no apparent experience in home goods wholesaling, stepped forward to take out the Lender at an agreed amount, bringing the matter to a quick conclusion.
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Lessons • Don’t let borrower control or manage field examinations. • Don’t overlook or blindly accept borrower’s explanation of red flags. • If there is a shared warehouse, be certain there are proper controls and reporting in place. A related entity in the same warehouse is a red flag. • Validate payments received to confirm they are from the actual account debtor. • Act promptly and aggressively if you suspect fraud. Bring in counsel, compliance and reporting (if federally insured). TSL Richard. G. Haddad is chairman of the Litigation Department at Otterbourg P.C. He can be reached at rhaddad@ otterbourg.com or 212.905.3622
You know something called H.R. 1628 Section 112 might change everything.
N o one knows your business better than you. And with how quickly healthcare changes, you also know that you have to evolve with it. MB’s expanded healthcare team is here to offer your business creative ideas on how to stay on top of changing healthcare regulations and technology to better help the people you care for.
MB Financial Bank Member FDIC
The Evolving Nature of Risk Management By Damon Dickens Damon Dickens of Sallyport Commercial Finance discusses how technology can assist lenders in risk mitigation.
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THE SECURED LENDER OCTOBER 2018 15
In a rapidly changing world, having confidence in your risk-management system is critical. A dynamic, yet robust, risk-management framework ensures that we have the ability to target risk in our portfolios and can deliver what we promise, for our clients, our staff and our stakeholders. In the commercial finance world, being able to reinforce and adapt our risk- management processes and procedures is paramount; one way to do this is by utilizing technology to enhance and protect our offering. Technology in Risk Management Utilizing new technologies in account acquisition, portfolio management and workouts is critical to ensure we maintain a strong risk-management environment. As a lender, having dominion of funds is fundamental for the smooth running of a factoring/asset-based lending facility. In the instance where a customer collection is not paid directly to the lender, we would either catch this from our ongoing contact directly with the customer or during our review of the client’s bank statements as part of the monthly management reporting package. As an alternative to relying on clients to provide monthly bank statements, we have integrated with and have utilized a software, via a Fintech platform, (We use Finvoice, but there are several platforms out there dedicated to our industry) which allows for online, read-only encrypted access into our clients’ bank accounts (with their permission, of course). This is advantageous for several reasons: (1) We see the transaction in the account much faster than we would typically if we waited to receive a copy of bank statements a month or more after most transactions. Our reaction time is significantly reduced; the sooner we are aware of any problems, the sooner we can work on a solution. (2) The information is coming directly from the bank, so we can be sure
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that the transactions are bona fide: contrast this with PDF copies of bank statements sent directly from the customer, which can increase the risk of transactions/bank statements being edited or falsified. (3) Access is given to all bank accounts. We can view all accounts which the client operates, giving us a view of the whole picture of our client’s cash position, which helps us make informed decisions. (4) Parameters can be set so that certain transactions are highlighted immediately such as a reverse ACH (possibly indicative of a merchant cash advance loan), or large deposits, for example. (5) It reduces the workload for our clients. They don’t need to print-savesend their bank statements every month and email them over to us. Once the link is active, it remains active until terminated. We have seen the benefits of the system already; uncovering a large direct conversion of cash by one of our larger ABL clients within 48 hours of them receiving the payment directly. This allowed us to react quickly and ensure the payment was wired to us before it was spent! Without the real-time monitoring, we would have uncovered the payment several weeks down the line, making our chance of recovery much smaller. Portfolio Management Analytics As portfolios grow, being able to effectively scale with our risk-management procedures becomes critical. A portfolio of 10 clients can be monitored very closely, with each client and each debtor base having lots of hands-on monitoring; however, with a portfolio of 100 or 200 clients, this hands-on approach is unsustainable. Utilizing portfolio data integration and analytics software can help to target and pinpoint specific pockets of risk in the portfolio. This software does not replace our operating system where we manage our clients day-to-day,
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but rather sits on top of the operating platform and provides a further layer of risk management. The software can be used to manage by exception, utilizing pre-defined criteria and risk scores to highlight which clients may need further analysis. We can also set specific trigger events, add periodic reviews and monitor our overall debtor or industry/sector exposure. Some examples of how we have used the system as a tool to improve our enterprise-wide risk management: (1) Constructed a high-risk portfolio of clients (as defined by our own internal criteria). This allows for greater focus on the clients which we believe pose the largest risk of loss to our business. The criteria for high risk can be personalized. For example, it may be: — accounts with high or trending high dilution — accounts with a high or trending high DSO — accounts with changes of more than X to dilution or DSO — accounts with high concentration — accounts in arrears with their monthly reporting — accounts that are out of formula. (2) Operates as a centralized database which lists all required periodic reporting from clients. This could be common items such as the standard monthly reporting package from clients to less frequent items such as inventory appraisals, field exam requirements or insurance renewals. (3) Performing annual client reviews using pre-prepared templates in the system. This reduces the need to manually transfer the information from the operating system and reduces the likelihood of manual errors and saves time. (4) The system can be utilized for automated portfolio reports, these can help deliver insightful management information across the business at
a variety of levels, from Operations, Risk to Senior Management/Board level. As the saying goes: “What gets measured, gets managed.” Portfolio management software can allow us to become more analytical and data-driven and ensure that our risk-management resources and focus are allocated to the right areas. Using Technology in the Acquisition Process The acquisition process can be a critical time in the sales/underwriting process. Once an account has committed to your business, the time between due diligence and first funding should be minimized and as painless for the prospect as possible. That does not mean rushing a deal through underwriting and cutting corners, but in a competitive marketplace being able to close deals quickly, accurately, safely and efficiently is important. We have utilized a system in order to reduce this timeframe as much as possible. The system offers a variety of benefits to both the prospect and the lender. It allows for a direct online application, which means no e-mailing of paper applications with a reduced risk of manual error from misspelled words or illegible handwriting. It can produce a standard set of legal documents to be electronically signed, with risk tools to create an audit trail showing the IP address of the user’s computer. It can allow for direct access into the prospect accounting software, which reduces the risk of manipulation of the numbers, ensures the information is up to date and ultimately (once the business is fully onboard as a client) makes the monthly reporting requirements easy to manage. Additionally, parameters can be set such that the system will automatically send you copies of invoices generated over a predetermined dollar value or will upload a new AR aging to you once a week, for example. Furthermore, it can be combined with the bank account integration to provide a
seamless transition from prospect to client. Closing As always, the above should be caveated in that, use of technology in risk management is not a replacement, but an enhancement for our tried-and-tested methods. It is a useful tool which can make us more efficient and highlight trends to give us a better understanding of our portfolio so that we can act proactively to manage situations, rather than reactively. It helps to expedite and optimize due diligence to close deals faster. Technology and software will never replace ‘gut feeling’, and we should never abandon our prior experiences or existing relationships with clients. Technology can help us become more responsive to problems and more flexible with our solutions for clients. An early warning signal could prompt a telephone conversation or in-person visit to the client just before they become desperate enough to raise that fraudulent invoice or supply that fabricated financial statement. At the fine margins of portfolio management, use of technology in the right way can be the difference between stopping a loss altogether or turning a potential loss into a manageable situation. The key, as always, is striking the right balance. When you lend money, you can rest assured that at some point, someone will try to take some of it from you; a dynamic technology solution helps to keep the wheels on so that you can focus time and energy where it is needed most. TSL
field examinations and underwriting. Damon holds a BSc (hons) in Mathematics, Operational Research, Statistics and Economics from the University of Warwick, a BSc (hons) in Accounting and Finance from the London School of Economics and an MSc (distinction) in International Banking and Finance from Liverpool John Moores University. Damon can be reached by phone at 832-939-9450 or via email at ddickens@sallyportcf.com.
Damon Dickens is the vice president - risk and underwriting of Sallyport Commercial Finance, LLC. Damon was previously the risk officer of the Bibby Financial Services - Large Business Unit covering the Atlanta and Los Angeles offices. Prior to joining Bibby in the US in 2013, Damon worked for Bibby Financial Services in the UK, working in a variety of roles covering risk, audit,
THE SECURED LENDER OCTOBER 2018 17
UNDERSTANDING THE EVOLVING RETAIL LANDSCAPE AND THE NEED FOR ASSET-BASED LENDING
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By Joseph Nemia Joe Nemia of TD Bank discusses the fast-paced changes in retail and how lenders can work with retailers to weather the frequent storms. THE SECURED LENDER OCTOBER 2018 19
The retail industry is experiencing fundamental shifts as it combats the disruption brought on by changes in conventional shopping habits, consumer preferences and demand. This year has seen retailers filing for bankruptcy at record high rates and multiple store closings due to an increase in e-commerce that is anticipated to continue. To stay relevant and competitive, retailers need to make purchasing easy and seamless for the consumer. Asset-based lending can provide brickand-mortar stores the working capital needed to create the immersive shopping experience required to pioneer the revolution.
lenders need to understand the trends in today’s market and which are necessary for the retailer to integrate to meet consumer needs based on shopping expectations. Well-known retailers, including Nordstrom, Saks Fifth Avenue and Neiman Marcus, have expanded market reach by building more affordable brands such as Nordstrom Rack, Saks OFF 5TH and Neiman Marcus Last Call. These discounter brands create additional brick-and-mortar stores and broaden the consumer base, generating supplemental revenue opportunities. Retailers are also expanding their digital marketplace in response to companies like Walmart and Ama-
A debtor-in-possession “DIP” structure allows retailers to secure immediate cash and ongoing working capital, enabling them to “keep the doors open” as they restructure operations, which may include the selling and closing of unprofitable business lines and stores that are burdening the company’s financial stability. Throughout the evolving retail landscape, asset-based lending has proven to be a beneficial financial solution for companies looking to shift strategies, whether it be experiential retail and omni-channel development, or those in distressed situations. By providing secured revolving lines of credit and term loans that offer a combination of flexibility, convenience and competitive pricing, asset-based lending helps companies effectively navigate through critical transitions. Retailers’ Dilemma To stay competitive, brick-and-mortar stores are looking to implement multichannel strategies that not only expand their target market, but also increase their market share within the retail landscape. In order to best assist retailers with their financial needs,
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zon, which have forever altered the traditional shopping experience, as their consumers now expect competitive pricing, greater variety and free shipping, all from the comfort of their homes. Store locations are now serving as an extension of the brand experience. There is an emergence of stores such as Nordstrom Local, where customers can pick up or return items ordered online, but does not carry inventory. Other retailers, such as Target, are using technology to make hyper-local product recommendations to consumers when they are in-store. To stay competitive and survive in the evolving landscape, retailers need to adapt operating models and business strategies and are engaging with asset-based lenders to provide the financing needed to become more
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responsive to consumer demands. Be There for Every Stage of the Retail Lifecycle Asset-based lenders can provide support to retailers as they reshape business models and incorporate new strategies during all stages of the retail lifecycle. The flexible borrowing and repayment terms and less restrictive financial covenants position asset-based lending as an ideal financial solution as retailers navigate through growth, bankruptcy and restructuring. As retailers strategically invest in growth opportunities, whether through market and product development, acquisitions, or expansion, asset-based lending provides financial support for a company’s growth cycle. Adapting an omni-channel experience for the consumer requires seamlessly combining brick-and-mortar, e-commerce and buyer preferences. Working capital is essential for these new strategies and asset-based lending provides the ability to maximize liquidity by leveraging inventory to fund a revolving line of credit. This allows retailers to continue to build inventory and develop technological capabilities providing that all-encompassing shopping experience consumers demand. The challenge of keeping up with fast-changing customer demand may present financial pressure. In these situations, asset-based lenders can structure a financing solution to support a business that may need to file bankruptcy. A debtor-in-possession “DIP” structure allows retailers to secure immediate cash and ongoing working capital, enabling them to “keep the doors open” as they restructure operations, which may include the selling and closing of unprofitable business lines and stores that are burdening the company’s financial stability. Once a comprehensive restructuring strategy has been agreed upon, a Plan of Reorganization [“POR”] financing structure enables retailers to emerge leaner, both from an infra-
structure and financial perspective, more nimble, and ready to re-engage and compete in the new-age retail environment. Scalable for Companies of All Sizes and Scopes Not only is asset-based lending useful during any stage in the retail lifecycle, but it is adaptable for businesses of all sizes. Larger, more established retailers may find themselves in a stage of declining sales and heavy debt loads due to an evolving competitive landscape, as shoppers continue to turn to alternative retail sources. By engaging with an asset-based lender during preliminary discussions surrounding a pivot in the business model, lenders
majority of their business during the winter or Halloween stores that are limited to a three-month shopping window can utilize asset-based lending to keep their businesses afloat and to stock up on inventory ahead of their busy seasons. As the retail industry continues to experience disruption, lenders need to help retailers adapt to the everevolving consumer buying patterns by providing the financing they need to stay relevant and competitive in the marketplace. In order to navigate and be positioned for success, brickand-mortar retailers must continue to transform by providing an in-store extension of the brand’s overall experience, offering in-store conveniences
Convenient Bank. As aead of ABL, Nemia is a key member of the bank’s Corporate & Specialty Banking leadership team. He oversees a team of ABL lenders with experience in developing strong customer relationships by delivering solutions to meet its customers’ financial needs. ABL offers clients a flexible cost-effective financing solution by leveraging assets and maximizing liquidity. Nemia has more than 30 years of experience in corporate finance and is a graduate of Pace University – Lubin School of Business, BBA, MBA.
As the retail industry continues to experience disruption, lenders need to help retailers adapt to the ever-evolving consumer buying patterns by providing the financing they need to stay relevant and competitive in the marketplace.
will be able to help retailers effectively manage growth and development throughout the transition process. On the other hand, smaller retailers can respond and adapt quickly to changing buying patterns; but, as they master the new-age shopping experience, capital is needed to effectively compete with larger companies. Assetbased lenders can help generate the working capital or short-term cash that smaller retailers need by offering a borrowing structure that leverages the business’s collateral or accounts receivable to provide liquidity for investment in efficiencies and inventory. Asset-based lenders can also serve as a useful funding tool for retailers that have a niche consumer base or are reliant on seasonal products. For example, ski shops that conduct the
such as pre-purchased pickups and integrating with smartphone technology to understand buying patterns in order to provide discounts and recommend products. These investments require significant capital, and assetbased lenders can provide flexible customized financing that enables retailers to succeed in the new retail paradigm. In a time when retailers are faced with an increasingly complex retail environment, engaging with a trustworthy, committed financial partner that understands their business will enable companies to be better positioned to respond to the changes that continue to undulate through the retail market. TSL Joseph Nemia is head of Asset Based Lending at TD Bank, America’s Most
THE SECURED LENDER OCTOBER 2018 21
FEDERAL COURT IN NEW YORK ENFORCES “FLOATING” FORUM SELECTION CLAUSE A federal judge in New York recently analyzed a "floating" forum selection clause under both federal and New York state law, and held that the clause was enforceable by an assignee against a Texas lessee with no ties to New York. By Marc Hamroff, Esq. and Robert Tils, Esq.
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Forum selection clauses are favored by most courts in most jurisdictions, as a contractual mechanism to provide certainty with respect to where a litigation may be commenced in the event of a dispute between the contracting parties. However, not all forum selection clauses are created equal. One type of forum selection clause which courts have generally declined to enforce, are those which are deemed to be overbroad and, therefore, do not serve the statutory purpose of providing certainty as to where a litigation may take place. An example of such a clause would be one that allows one of the contracting parties to sue the other “in any court located in the United States”. Brooke Group Ltd. v. JCH Syndicate, 87 N.Y. 2d 530 (1996). Another type of forum selection clause that has not been universally enforced is the so-called “floating” forum selection clause. A floating forum selection clause is one which subjects a contracting party to jurisdiction and venue wherever an assignee of the other contracting party may be located, even if the assignee is unknown or unidentified at the time of the contract. Courts which have been critical of floating forum selection clauses have typically focused on the fact that at the time of execution of the agreement containing such a clause, at least one of the contracting parties does not know where a potential assignee may be located and, therefore, where they may be subjecting themselves to jurisdiction and venue. Preferred Capital, Inc. v. Power Engineering Group, Inc., 112 Ohio St. 3d 429 (2007). Nevertheless, floating forum selection clauses are widely used in the lending and finance industry and courts have recognized that the clauses serve a valid business purpose by making agreements more readily assignable (such as in capital markets, syndications or other similar credit facilities), which results in lower pricing to customers. IFC Credit Corp. v. Aliano Brothers General Contractors, Inc., 437 F. 3d 606 (7th Cir. 2006). Even courts that have refused to enforce floating forum selection clauses on state law public policy grounds have recognized their valid business purpose. Preferred Capital, supra. Recently, the enforceability of a floating forum selection clause under both New
York and Federal law was addressed by a Federal judge in the Southern District of New York in a case entitled Signature Financial, LLC v. Neighbors Global Holdings, LLC et al., 281 F. Supp. 3d 438 (SDNY 2017). In an Opinion dated December 19, 2017, the Court explained a prior “bottom-line Order” which had denied in its entirety the defendants’ motion to either dismiss Signature’s case against them for lack of personal jurisdiction, or, alternatively, transfer venue to the Southern District of Texas. The Opinion recognized that the question of personal jurisdiction was governed by New York State law, while the question of venue was governed by Federal law. Therefore, the Court was required to analyze the enforceability of the floating forum selection clause under both New York State law and Federal law. After a detailed analysis, the Court held that the floating forum selection clause is enforceable under both New York State and Federal law, subject to the traditional grounds for invalidating forum selection clauses generally, such as fraud relating to procuring the clause (which was not present in the Signature case). As Judge Rakoff stated when discussing the floating forum selection clause’s enforceability under New York State law: Floating mandatory consent to jurisdiction clauses are enforced in New York because they facilitate the loan assignment market by allowing lenders to assign loans to other lenders and still sue borrowers for non-payment of rent in their home jurisdictions. The purpose of the clauses is not to surprise or inconvenience defendants, but to lower the cost of servicing lease portfolios. Lenders with large books of leases bring many suits for non-payment, and they can manage these portfolios more efficiently if they can bring all such suits in one place. By enforcing these clauses, New York courts lower borrowing costs for lessees by expanding the pool of capital available to finance leases. Were New York courts to invalidate these clauses, financial institutions in New York might refrain from buying leases extended in other states, such as Texas, reducing access to capital for individuals and businesses in these areas. The negative effects may be particularly
pronounced in those areas with lower concentrations of banking assets. The opinion distinguished the “series cases arising out of the nationwide fraud perpetuated by a defunct firm call NorVergence … where the defendants were small, out-of-state, local businesses ill-equipped to litigate in New York”, and some courts refused to enforce floating forum selection clauses. However, where the party opposing enforcement of the floating forum selection clause is a “sophisticated business”, as was the case in the Signature matter, the Court found no reason to refuse enforcement of the clause. As a postscript to the December 2017 Federal court decision upholding jurisdiction to allow Signature to pursue its claims for its defaulted finance leases, on May 9, 2018, the Court filed a final decision in Signature v. Neighbors, which granted Signature’s motion for summary judgment in full on all counts. 2018 U.S. Dist. LEXIS 78428. The Summary Judgment Decision first analyzed the validity of the assignments of the subject leases from the original vendor of the equipment to the first assignee, EverBank, and then from EverBank to Signature. After finding the assignments valid, the Court then disposed of allegations of fraudulent inducement that Neighbors had made against the vendor in an effort to void the leases. Finally, the Court enforced the “hell-or-high-water” provision and waiver of defenses against assignees, noting that the leases expressly provided that, if they were assigned by the vendor, the assignees would have all of the vendors’ rights and benefits under the leases, but not its obligations. Therefore, any allegations of a failure to provide ongoing service or other obligations under the leases could not be asserted as a defense to Signature’s claims. The end result was an award to Signature of the full accelerated lease balances, possession of the leased equipment, and attorney’s fees and costs. TSL Marc Hamroff, Esq. is the managing partner and Robert Tils, Esq. is the co-chair of the Litigation Group at Moritt Hock & Hamroff LLP. Thank you to Kelly Schneid, Esq. and Lauren Bernstein, Esq. who assisted in preparing this article.
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The 5 Cs of Tactical Risk Management By Richard Hawkins Richard Hawkins of Atlantic Risk Management walks readers through the 5Cs of Tactical Risk Management, including Collateral, Cash, Conditions, Circumstances and Character.
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n asset-based lending, we refer to “tactical risk management”, which sets this industry apart from other activities that are often referred to as simply “risk management.” We work on the basis that the challenge of manging risk across a portfolio of borrowers is that you need to take a multilateral approach, and this approach often leads to planning, action and execution. This view conflicts with the natural human condition to try to adopt a one-size-fits-all mentality. A clear example of this is the attempt to blend all the aspects of risk into a simple Risk Score: a 1 is Heaven and 100 is Hell scenario. The more elements that get poured into the mix,
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the blend tends to produce median results, i.e. everything ends up 40 to 60. We need to think about the risk that any borrower represents in context and sequence that determines both the significance and timing of risk that can be applied to any given situation. We have developed the 5 Cs Model based on working for and with lenders, which has been delivered many times as part of Commercial Finance Risk Management Training. The 5Cs are: Collateral, Cash, Conditions, Circumstances and Character. 1. Collateral Of course, we start with Collateral and for good reasons. It’s the stuff that secures and potentially repays the loan. It is, or certainly should be, the area where we have an abundance of expertise and knowledge. Our ability to understand the collateral provides a shop window to a whole variety of data and information concerning this and all of the other four elements. It is our ability to gain information through the
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nature of the ABL arrangement that puts lenders in a unique position to understand and control risk and is the main reason that impairment levels remain low even in challenging economic circumstances. It’s all about the collateral. 2. Cash – Short-Term Liquidity Conditions When we talk about cash, we are concerning ourselves with current liquidity conditions. The first question we seek to answer here: Does the borrower have sufficient resources to meet shortto medium-term liabilities? If the answer is no, the next question is: How long have we got? To find this out, we need a detailed assessment of time-critical liabilities and short-term cash-flow forecasts. We also need to consider the solvency question. The answer to “how long have we got?” and “how solvent is the borrower?” will determine the potential exit or recovery routes that are available. It works on the simple premise that, the higher the quality of the borrower, the longer it will take to
THIS IS WHERE WE FIRST INTRODUCE THE CONCEPT OF CLIENT /BORROWER TIME LINE THEORY. (SEE DIAGRAM 1) 1
TYPICAL CLIENT
2
QUALITY
3 4 5 6 7 8
TIME
fail and, more importantly, the more options a lender or other stakeholders have to avoid a crash and burn. Obviously, in extreme circumstances, where our assessment of liquidity suggests we are close to the end (less than 180 Days), we are forced to consider reactive measures. It is during this part of the timeline that borrowers are more likely to attempt to “Game the System.” But that is a subject for another day. 3. Conditions (Financial) This is where the analysts get to do their stuff. The importance and significance of financial conditions is the ability to use historic performance in order to attempt to predict future outcomes. It is important, though, that the use of financial analysis undertaken is commensurate with the circumstances of the borrower in that use of asset-based lending will make some ratios more appropriate than others. We advocate the use of common-size diagrams which provide a very visual picture of the balance sheet and, taken together with other key ratios, can recognize the real purpose of an ABL loan, understand the cushion provided by other creditors, isolate non-performing assets and identify key risks. 4. Circumstances – Business This is where we stand back and assess the borrower’s commercial
strength and consider its relative strengths and weaknesses. Here, it is often useful to use exiting models such as Porters 5 Forces and PESTE to determine the external and internal environment. Sometimes a SWOT is used at this juncture. The important thing here is to look at the borrower as a business. Here we are trying to work out if there is an intrinsic or enterprise value that can provide a sale of the business in whole or in parts. We also need to consider the capital and corporate structure and pay particular attention to other stakeholders. 5. Character - Management And by character, I mean management. Placing management at the end of the process where we often meet the most resistance. For a lot of lenders, this seems counter-intuitive. We have all heard, if we like the people and we like the business, we try to make the loan, which is fine until you decide you don’t like the people anymore. The problem with elevating our assessment of management higher up the food chain is this: It’s the area where subjectivity can override objectivity. As mentioned earlier, if lenders analyse the 5 Cs in the order suggested, by the time you get to management, you should have developed expectations in terms of the key determinants: ability and integrity. The most dangerous position is to
reverse this psychology and allow our initial thoughts about management to color and influence what should be objective and rational analysis. Through the utilisation and analysis of the 5 Cs of risk, we should have a comprehensive understanding of the threats and opportunities any borrower represents. This should be part of ongoing risk management and also in reaction to events and borrower requirements such as changes in the organizational structure, M&A opportunities and so forth. This leads us on to the Second Module in our Risk Management Series: The 6Rs of Exit Routes The 6 Rs - Exit Routes This module is where we consider the time line in relation to the 6Rs of Exit Routes: Re-Finance, Recovery, Rehabilitation, Reinvestment, Restructure, Repayment. I am sure there are other ways of working out, but for this exercise it has been suggested that, if things don’t go well, I could add Resignation or Retirement, which may be the outcome of bad choices and poor execution. Our experience shows that lenders get it horribly wrong when they pursue a recovery strategy that was never really available to them in the first place. A more detailed study of the 6 Rs will be published in a future issue. TSL Richard Hawkins is CEO & founder of Atlantic Risk Management Services, which he established in 1997. He has over 30 years of experience working with and for the asset-based lending industry and was at the forefront of developing asset-based lending techniques in the UK in the 1980s. He is a member of the CFA Education Foundation Research Committee. www.atlanticrms.com
THE SECURED LENDER OCTOBER 2018 25
D. Michael
Monk Discusses His Year as CFA President CFA’s 2018 president, D. Michael Monk, has been managing partner of Amerisource Business Capital since 1998. He has over 25 years of experience including senior leadership roles covering virtually all aspects of the commercial finance field, including credit, underwriting, legal, compliance, operations management, portfolio risk management, business development, marketing and public relations. He is also a past president of CFA’s Houston Chapter and currently serves on its board of directors. He is past president of the Houston Racquet Club. He also sits on a number of other private boards of directors and is involved with numerous trade associations and charitable organizations. Monk graduated from The University of Texas at Austin in the Honors Business Program with majors in Finance and Marketing and minor studies in Astronomy. He also received his MBA from the University of Texas at Austin in 1992.
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In your interview last year, you said expanding CFA’s membership and focusing on CFA’s chapters were your main priorities. Can you please update readers on these two areas? One of our major accomplishments at CFA this year was to be more inclusive and open our “national” membership to non-lenders and service providers who are deeply rooted and engaged in enabling capital finance and the deal cycle. Our “local” chapters have been open to non-lenders for many years, so this initiative also aligned CFA National’s membership policy with the policies of our local chapters. In our first year of this initiative, we exceeded our goal by over 25% for these new members, and the demand we are seeing continues to accelerate. Feedback from our lenders and non-lenders alike has been overwhelmingly positive thus far, and we are very optimistic about the future for this new segment of our membership. Connecting with our chapters and chapter leaders across the country was another top priority this year. Being a past president of the Houston Chapter (20022003), I know first-hand the challenges of running a chapter as a volunteer. I felt it was vitally important for our new CEO, Rich Gumbrecht, to obtain that perspective as well, by connecting with these individual chapters and their leaders. Rich and I set a fairly ambitious goal of visiting as many of our chapters as possible during my term as president. Together, we visited 19 chapters over this past year. It was a huge investment of time and work. But we both found the experience and interactions with our local leaders to be invaluable. Rich will tell you that seeing the energy, optimism and vibrance of our local chapter network was truly eye-opening and energizing for him. For me, it was a strong affirmation that the commitment of our grass-roots membership base is as robust as ever. We are using the feedback and intel gathered from these visits to enhance CFA National’s focus and efforts in assisting these chapters – including supporting their administrative needs and cooperating to enhance their programming, education offerings, membership retention and attendance at events.
What would you say was the most surprising aspect of being CFA president? I had many surprises, but my most pleasant surprise was the competence and ability of our new CEO, Rich Gumbrecht. We achieved alignment of our interests and objectives for this organization almost immediately. And Rich’s mastery of CFA’s financials and budgeting gave me tremendous confidence in the financial footing on which we stood. As a result, we were able to tackle high-return projects and strategic initiatives to move the CFA organization forward — projects like expanding our membership base to be more inclusive, engaging with the chapter members and leaders, initiating our first-ever Market Sizing and Impact Study to quantify our Association’s reach, and launching a complete rebranding effort to modernize our organization. These are all things we’ve needed to do for a very long time, so we feel like these efforts will have a lasting impact. I’m grateful for the opportunity to work with Rich, and I’ll remember and cherish our year together leading the CFA – the road trips, the after-hours phone calls, the breakfasts, lunches, and dinners, the tag-team networking, the multiple flights in a single day as we hopped cities to visit chapters. It was exhausting, yet energizing, because we knew we were accomplishing great things and moving the ball forward. And in the end, it was very rewarding. We have a first-class CEO in Rich Gumbrecht, and I’m excited about all the great things in store for our organization. As I pass the leadership torch to Dave Grende next year, I pray he will get to know Rich in the same way I have. CFA just held its third 40 Under 40 Awards celebration. What advice would you give to young professionals just starting their careers? Like any profession, our industry is about relationships. So Number One – take the time to get to know the senior folks in our industry. You can’t truly visualize the future until you understand the past. Our industry veterans possess a wealth of knowledge and experience. And, believe it or not, most are very eager to hear the perspective of the younger generation.
D. Michael Monk managing partner, Amerisource Business Capital
After all – in just a few years, Millennials will comprise the majority of professionals in the workforce. And Number Two – get involved! Attend your local chapter events. Join (or start!) a YoPro group in your chapter. Volunteer to serve on one of our national committees – there are a ton of committees and opportunities to serve. Getting involved will increase your connectivity to your peers and industry leaders alike, and it will reward your efforts many times over. Do you have any advice for incoming president Dave Grende? Having worked with Dave Grende on the Management Committee for the last six years, there isn’t much I can tell him that he doesn’t already know. We’ve been in the trenches together and have covered a lot of ground in moving the CFA forward to where it is today. Dave is well prepared for the job. He has been instrumental to this organization and was a trusted advisor and lieutenant during my term as president. He has tremendous energy and strength to contribute, and I have no doubt he will be a great president. He is a true friend. He’s got my cell number, and I stand ready to serve in whatever capacity he needs this year. TSL Michele Ocejo is director of communications for CFA and editor-in-chief of The Secured Lender.
THE SECURED LENDER OCTOBER 2018 27
IDEA EXCHANGE
Marriott Marquis San Diego Marina November 6, 2018
KEYNOTE LUNCH SPEAKERS
Crucial Conversations In Secured Lending The CFA is pleased to introduce our all-new members-only, invitation-only working session event targeted to mid-upper level professionals in distinct operating disciplines. Unlike other panel discussion format meetings, this highly focused deep-dive will feature peer-to-peer interactive conversations on relevant, high-impact issues moderated by leading experts. With five distinct tracks, a general session keynote speakers, a luxury yacht opening reception with CFA's Board of Directors and countless crucial conversations, the CFA Idea Exchange is sure to be one of the most productive and memorable industry events of the year. IDEA EXCHANGE TRACKS - Credit & Portfolio Management - Executive Sales & Marketing - Legal - Operations and Technology - President & CEO
Lunch with Two Economists How Trade Wars Will Hurt Financial Markets: Exploring the Important Linkages
Robert F. Wescott, Ph.D. President of Keybridge Research LLC
Elizabeth Rust, Macro Division at Keybridge Research LLC Only executives from CFA member companies and invited guests are eligible to participate in the Idea Exchange. TO INQUIRE ABOUT ATTENDING CONTACT:
visit community.cfa.com/ideaexchange to learn more
Kayla Stypulkoski, Program Coordinator Commercial Finance Association Ph: (212) 792-9395 kstypulkoski@cfa.com
MARRIOTT MARQUIS SAN DIEGO MARINA
CFA’s 74th Annual Convention
NOVEMBER 7-9, 2018
CFA
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{ Exhibition Guide 2018 } INTEGRATED SOLUTIONS TARGETED REACH POWERFUL RESULTS
CFA’S 74TH ANNUAL CONVENTION: NAVIGATING CHANGE
WWW.CFA.COM
74th ANNUAL CONVENTION EXHIBITOR GUIDE
LIST OF BOOTHS CURRENTLY TAKEN: 3i Infotech Financial Software Inc. (22)
112
AblSoft, Inc. (22)
113
Accounts Receivable Insurance (13)
108
Alleon Healthcare Capital (19)
114
Asset Based Lending Consultants, Inc.* (10)
205
aVeriFact, LLC (21)
211
Breakout Capital Finance, LLC* (8)(11)
104
CODIX* (22)
101, 200
Commercial Finance Consultants (28)
219
Cortland Capital Market Services (28)
203
Covarity (22)
217
CSC* (21)
100
Cync Software (22)
119
DAT Solutions (21)
209
Decipher Credit Solutions (22)
213
Dopkins ABL Consulting Services (10)
118
Equiniti Riskfactor* (22)
207
Finvoice (22)
106
Freed Maxick ABL Services (10)
107
HPD Software, LLC (22)
201
International Factoring Association (IFA) (28)
212
Park National Bank (4)
116
ProfitStars (22)
EXHIBIT HALL FLOOR PLAN
105, 103
RapidAdvance (8)
214
Richey May & Co (1)
204
Thomson Reuters (22)
102
UCCPlus Risk Management (13)
202
William Stucky & Associates, Inc. (22)
206
Wolters Kluwer - Lien Solutions* (22)
110
CODES: (1) Accountant (4) Bank Affiliated ABL (8) Entrepreneurial Finance & Factoring (10) Field Examination (11) FinTech (13) Insurance (19) Middle Market ABL (21) Search, Filing & Document Retrieval (22) Software (28) Other * Both Sponsor & Exhibitor
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EXHIBITOR LISTINGS
ALLEON 3i Infotech Inc., Booth #112 450 Raritan Center Parkway, Suite B, Edison, NJ 08837 Ramani Rajagopalan, Director – Enterprise Banking Solutions, (732) 662-6152 Email: ramani.rajagopalan@3i-infotech.com www.3i-infotech.com
Factor/SQL is a trusted name for over 30 years with companies offering commercial financing. It is the world’s premier solution and has been gainfully used by all sizes and types of commercial financing companies to manage portfolios, analyze risk, track commissions and optimize income. Factor/SQL helps financing institutions manage both factoring and asset-based lending clients in one consolidated platform enhancing their ability to easily and effectively manage loan balances and collateral. It is available on-premise or as a hosted solution offering high availability, scalability and dependability.
HEALTHCARE
CAPITAL
Alleon Healthcare Capital, Booth #114 1086 Teaneck Rd., Ste. 4D, Teaneck, NJ 07666 Ben Moyer, Vice President of Operations, (201) 340-6347 E-mail: benm@alleoncapital.com www.alleonhealthcare.com
Alleon Healthcare Capital (AHC) is a medical accounts receivable financing/factoring company. Alleon funds any medical provider that bills Medicare, Medicaid, commercial insurance, private insurance, no-fault/PIP, workers compensation and personal injury, I.E. doctors, DME/HME, chiropractors, orthopedic surgeons, MRI centers, drug/alcohol centers, home healthcare companies, labs, urgent care centers and more.
EXHIBITOR AND SPONSOR
ABLSoft Inc., Booth #113 840 Hinckley Rd., Suite 127, Burlingame, CA 94010 Nancy Lee, COO, (866) 632-7146 E-mail: nlee@ablsoft.com www.ablsoft.com
ABLSoft is the proud provider of RadarOne, an all-in-one Cloud lending platform for asset-based lending, inventory, invoice financing, purchase order, term loans and more. From pre-screening to trending, the RadarONE platform manages and monitors your entire portfolio with the utmost flexibility. ABLSoft, Inc. is a pioneer in the development of enterprise scalable Web-based solutions. For over 20 years, its software development team has provided innovative, yet flexible, browser-based solutions for companies ranging from venture startups to Fortune 500 companies in the financial, healthcare and telecommunications industries.
Accounts Receivable Insurance (ARI), Booth #108 1311 N. Westshore Blvd., Ste. 315, Tampa, FL 33607 Joel Freedman, Director of Marketing, (813) 288-8680 E-mail: joel@ariglobal.com www.ariglobal.com
ARI Global is an independent brokerage firm specializing in accounts receivable insurance. In business since 1996, ARI has over 150 years combined experience with offices throughout the United States. ARI accesses all accounts receivable insurance carriers – domestic and foreign – ensuring clients their best insurance value. Prompt, responsive service and customer satisfaction have earned ARI recognition as an “Elite Broker”, a distinction held only by the best agencies.
Asset Based Lending Consultants, Booth #205 1641 N. 71st Terrace, Hollywood, FL 33024 Dwight Clarke, Vice President, (954) 962-0099 Email: dwight.clarke@ablc.net www.ablc.net
For over 30 years ASSET BASED LENDING CONSULTANTS, INC. has been providing lenders across the United States, Canada, Europe, Australia and the Far East with a strong foundation to enhance their credit decision process. ABLC has been called upon by the leading lenders in the industry to provide the highest quality field examination services available by an independent firm. Led by Donald Clarke (over 35 years in the industry, 1993 CFA Instructor of the year, author and international lecturer on ABL disciplines) along with some 20 plus professionals worldwide. Asset Based Learning Consultants is a business built on a foundation driven by making a difference for its lender clients. With this same commitment, we offer a franchise program that is designed to be a great opportunity for a variety of candidate profiles, who have a mind for finance, an entrepreneurial mindset – and a desire to provide professional solutions to a growing client base. Whether you are an accountant, financial professional or someone who simply just wants to help build business in the local community, ABLC could be the fresh start you have been seeking.
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74th ANNUAL CONVENTION EXHIBITOR GUIDE
aVeriFact, LLC, Booth #211 1402 S. Magnolia St., Ste. M, Hammond, LA 70403 Sandra Lovett-Tillman, Managing Director/Co-Owner, (800) 468-5818 ext. 102 Email: slovett@averifact.com www.averifact.com
aVeriFact, LLC is a licensed private investigation agency with 50+ years of experience providing high quality search products for Financial & Background due diligence: PreLending/Vendor-Supplier Prequalification, BSA/AML Risk Investigations, Recovery/Workout/Litigation, Asset & Liability and Employee Background. Key personnel have FDIC government security clearance; and are licensed private investigators. A certified Women’s Business Enterprise (WBE)/Woman Owned Small Business (WOSB) that starts searches where standard database services end. Using applicable databases to target our investigation, then search alternative databases, internet, media, Federal/State/County and physical records ensures accuracy.
EXHIBITOR AND SPONSOR
Breakout Capital, Booth #104 6862 Elm St., 3rd Floor, McLean, VA 22101 John Weaver, Marketing Manager, (571) 282-3937 Email: jweaver@breakoutfinance.com www.breakoutfinance.com
Built on the pillars of transparency, honesty, and doing what’s right for small business. And we mean that. We’re working for small businesses every day, providing responsible working capital solutions tailored specifically for your business. We know each customer carries a unique story, and with dozens of different forms of working capital available in the market, the “one size fits all” approach utilized by many of our competitors leaves many small businesses fighting an uphill battle with a product that doesn’t match their business. We also understand that capital alone isn’t enough, which is why we regularly produce important educational resources for you. But we don’t stop there; we are constantly working as your advocate, to ensure that small businesses across the country continue to have access to alternative forms of working capital that are transparent, affordable, and free of predatory practices. Our tagline says it all: Empowering Small Business. We want to put the financial control back into the hands of small business owners and allow you to focus on what you do best: running and growing your business.
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EXHIBITOR AND SPONSOR
CODIX, Booth #101 & 200 1230 Peachtree Street, Ste. 1900-PMB208, Atlanta, GA 30309 Billy Quinn, Managing Director, (404) 790-0998 E-mail: bquinn@codix.us www.codix.us
CODIX is a software solution provider with branches in USA, Canada, Mexico, Germany, Romania, Czech Republic, France, Spain, Bulgaria, Tunisia, & Vietnam. The product offering (called iMX) is a global, powerful and flexible eventbased IT solution that provides an all-in-one package for any kind of commercial finance activity: factoring (traditional/ reverse/international/etc), invoice discounting, ABL, supply chain finance, leasing, credit insurance. With full multilingual and multicurrency abilities, and based on the latest available technologies, iMX includes all the most advanced business functionalities to cover the needs of a commercial finance company. It also includes native integration of all the tools needed to improve global productivity like an Extranet, telephony, imaging and a decisional environment. CODIX also ensures all the implementation services provided by both business and technical experts, delivering turn-key systems that are totally customized to cover 100% of its client needs, with assurances around a fixed price/fixed time offer.
Commercial Finance Consultants, Booth #219 2500 Discovery Blvd., Suite 300, Rockwall, TX 75032 David Rains, President, (469) 402-4000 Email: dar@searchcf.com www.searchcf.com
Commercial Finance Consultants is the executive search firm of choice exclusively serving the ABL and factoring industry across North America. From presidents and senior management to BDOs, credit and operations, there is no part of asset-based lending and factoring we do not serve. Additionally, CFC enjoys the status of the only recruiting agency with the designation of “Endorsed Vendor” from the International Factoring Association. Established in 2002 by David Rains, CFC has placed over 1000 people in both ABL and factoring companies across the US and Canada.
the business behind business. We are the unwavering partner for 90% of the Fortune 500®, more than half of the Best Global Brands (Interbrand®), nearly 10,000 law firms, and more than 3,000 financial organizations. Headquartered in Wilmington, Delaware, USA, since 1899, we have offices throughout the United States, Canada, Europe, and the Asia-Pacific region. We are a global company capable of doing business wherever our clients are—and we accomplish that by employing experts in every business we serve.
Cortland - Part of Alter Domus Group, Booth #203 225 W. Washington Street, Ste. 2100, Chicago, IL 60606 Christian Nicklas, US Event Manager, (203) 487-4701 E-mail: cnicklas@alterdomus.com www.cortlandglobal.com
Cortland Capital Market Services LLC (“Cortland”) is a member of the Alter Domus Group. Cortland offers issuers and investors in credit and real estate assets a comprehensive suite of asset and portfolio solutions including fund administration, agency services, securitization services, and CLO Collateral Administration. Alter Domus is a fully integrated fund and corporate services provider, dedicated to international private equity & infrastructure houses, real estate firms, private debt managers, multinationals, capital markets issuers and private clients. For more information on Alter Domus, please visit: www. alterdomus.com or on Cortland: www.cortlandglobal.com
cync
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Covarity (Constellation Financing Systems) (22), Booth #217 602-30 Duke St. W, Kitchner, Ontario N2H 3W5 Samuel Davis, Business Development Manager (519) 590-3986 E-mail: sdavis@covarity.com www.covarity.com
Covarity is a leader in post-origination commercial loan monitoring and analysis solutions for financial institutions that offer working capital lending products. Over 20,000 working-capital loans representing more than $9 billion in outstanding balances are regularly monitored and analyzed using Covarity. Covarity is a solution that combines rich financial analysis with the ability to streamline and automate the complexities of calculating the borrowing base. Covarity is well positioned to monitor small to large commercial loan portfolios requiring frequent and detailed reviews of collateral and financials. By providing the insight and control that lenders need to profitably grow their portfolio – while reducing risk and enhancing client service – Covarity enables lenders to enjoy improved competitiveness, reduced costs, and richer client experiences.
EXHIBITOR AND SPONSOR
CSC, Booth #100 251 Little Falls Dr., Wilmington, DE 19808 Kristen Hunter, Event Marketing Specialist – Strategy & Brand Marketing, (800) 927-9801 ext. 64075 E-mail: kristen.hunter@cscglobal.com www.cscglobal.com
CSC® is the world’s leading provider of business, legal, financial, and digital brand services to companies around the globe. From keeping your business in compliance and streamlining operations, to protecting and promoting your brand online, we use our expertise and personal approach to help your business run smoother. We are
Cync Software (14), Booth #119 3505 E. Frontage Rd., Ste. 175, Tampa, FL 33607 Lydia Taylor, Sales Director, (727) 538-2250 X311 E-mail: ltaylor@cyncsoftware.com www.cyncsoftware.com
Cync Software, a brand of NDS Systems, is a SaaS or on-site application for providing loan monitoring and servicing for the commercial lending market in real time and with accurate information. Cync automates the exchange of information between borrowers and lenders in the commercial lending market to improve the accuracy of data submitted, and to increase the efficiency and productivity of both borrowers and lenders. With our deep software domain expertise, we seek to develop innovative software products by leveraging the latest technologies in Cloud, mobility and analytics. The Cync Software suite provides a diverse collection of software financing solutions that covers a vast range of accounts receivable financing, factoring, working capital loans, asset-based lending and related credit services. By streamlining, standardizing and automating the collection and analysis of borrowers’ financial information, the Cync Application suite provides a complete solution for commercial finance companies, national, regional & community banks, asset-based lenders, A/R financing companies, and factors to track and monitor all aspects of their commercial lending portfolio. Our smart and dedicated team of professionals is committed to delivering the best quality solutions, customer service, support and efficient processes to the commercial lending community. We value our clients and will continue to enhance our product and reputation by providing sophisticated, cutting-edge monitoring tools for our clients’ commercial portfolios.
DAT Solutions, Booth #209 8405 SW Nimbus Ave., Beaverton, OR 97008 Kim Anderson, Events Manager, (503) 672-5114 E-mail: kim.anderson@dat.com www.dat.com
DAT Solutions provides asset-based lending services to Fortune 500 companies and other businesses, including banks and other financial institutions, legal advisors, and other parties involved in the transfer of transportation assets from one legal entity to another or in refinancing an asset portfolio by adding liens. DAT Solutions, a subsidiary of Roper Technologies (NYSE:ROP) has been serving the transportation industry since 1978.
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74th ANNUAL CONVENTION EXHIBITOR GUIDE
Decipher Credit Solutions, Booth #213 10411 Motor City Dr., Suite 750, Bethesda, MD 20817 Raul Velarde, Managing Director, (301) 710-5447 E-mail: raul@deciphercredit.com www.deciphercredit.com
Decipher Credit Solutions is a team of finance professionals and risk mitigation enthusiasts with more than 40 years of combined experience in finance, technology, and credit management. What sets us apart is our ability to service factoring and commercial lenders with an insider’s point of view. Our solution is designed by lenders for lenders. Our team members have a diverse background and have successfully operated within the industries we serve. We use best industry practices coupled with our revolutionary software and business credit information to decipher customer portfolio risk and speed up the lending process so you can take on more customers.
Dopkins ABL Consulting Services, Booth #118 200 International Drive, Buffalo, NY 14221 Joseph Heim, Partner, (716) 634-8800 E-mail: jheim@dopkins.com www.dopkins.com
Dopkins ABL Consulting specializes in performing pre-loan surveys, recurring collateral field examinations, monthly recurring revenue collateral examinations, and other due-diligence procedures to the ABL industry. Led by Certified Fraud Examiners and licensed CPA’s, the firm is strategically located throughout North America with fulltime, experienced field examiners. Dopkins understands that every borrower or prospect has unique credit risks that need to be evaluated, and will work with clients to develop an appropriate scope to ensure clients get the insight necessary for an effective evaluation of the credit. Frustrated by poor report turnaround, inexperienced examiners or the lack of value-added information? Learn how the professionals at Dopkins ABL Consulting Services have helped asset-based lenders deal with these issues when outsourcing field examinations.
helps lenders with compliance frameworks. In the UK 90% of commercial lenders choose EQ Riskfactor and the software is employed in over 90 global installations and has over 5,000 users worldwide. To discuss your risk management needs and to book a demo please contact Leigh Lones, Director, North America.
Finvoice, Booth #106 1225 Fulton Street, San Francisco, CA 94117 Andrew Bertolina, Chief Executive Officer, (310) 951-0596 E-mail: andrew@finvoice.com www.finvoice.com
Finvoice provides easy to use, modern lending software to the factoring / asset-based lending industry with advanced analytics and state of the art data integrations that allows lenders to onboard borrowers and process them in minutes. Finvoice is a Silicon Valley-based company with a team from Cambridge, Stanford and Harvard.
Freed Maxick ABL Services, LLC, Booth #107 800 Liberty Building, Buffalo, NY 14202 Howard Rein, President, (716) 847-2651 E-mail: howard.rein@freedmaxick.com www.freedmaxick.com
Freed Maxick ABL Services, LLC is one of the nation’s largest providers of ABL field exam and other outsourcing services to asset-based lending, private equity and other financial institutions that have granted loans, increased credit lines, reduced credit lines, or reduced loan loss exposure. Our objective is to assist lenders in evaluating the integrity of their customers’ collateral and performance by conducting pre-loan surveys, rotational collateral monitoring field examinations and due diligence. Our service is designed to help supplement your department with high level expertise and manpower on short-term notice, so as to assist the lender in protecting its assets and collateral. Communication is maintained with the lender throughout all phases of the fieldwork. We have a national footprint of examiners with extensive industry experience and industry exposures.
EXHIBITOR AND SPONSOR
EQ Riskfactor, Booth #207 Kemps Farm, London Road, Balcombe RH17 6JH, UK Leigh Lones, Marketing Manager, 01444 819460 E-mail: leigh.lones@equiniti.com www.equinitiriskfactor.com
Leading the way in risk management EQ Riskfactor is the market-leading accounts receivable and ABL risk management software for the global commercial finance industry. Our unique risk metrics enable lenders to quickly detect and prevent fraud. The EQ Riskfactor software enhances existing risk management processes and clearly highlights high risk accounts. At the same time it delivers operational efficiencies and 34
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HPD Software, Booth #201 735 Tank Farm Road, Ste. 185, San Luis Obispo, CA 93401 Pam Froman, Office Manager, (805) 544-5821 E-mail: pam.froman@hpdsoftware.com www.hpdsoftware.com
Banks and finance providers in more than 50 countries trust the HPD LendScape® invoice finance platform to manage over 50,000 clients. As specialists for finance providers, we ensure that our experience and understanding of invoice discounting, factoring and asset based lending is at the core of our R&D. Our technology is built to support multiple products, countries, languages, currencies and time zones to help
you deliver the best customer experience while managing risk more effectively. The LendScape SaaS offering allows companies of any size to deliver branded, customized working capital solutions that grow their business and can be easily accessed by clients via both desktop and mobile devices. www.hpdsoftware.com
International Factoring Association (IFA), Booth #212 6627 Bay Laurel Place, Ste. C, Avila Beach, CA 93424 Bert Goldberg, Executive Director, (805) 773-0011 E-mail: bert@factoring.org www.factoring.org
The International Factoring Association (IFA) is the world’s largest and most respected association serving the factoring and receivable finance industry. Founded in 1999, we have grown to over 460 finance companies as members. Some of the services that we offer are training courses, meetings, conferences, magazines, legal consulting, lead generation, membership discounts, job board, advocacy, legal compendium, certifications, and networking.
Park National Bank, Booth #116 140 East Town St., Columbus, OH 43215 Jack Arthur, AVP, (740) 352-3013 E-mail: jarthur@parknationalbank.com www.parknationalbank.com
For more than a century, our bankers have helped local families, businesses and communities achieve financial success with confidence and ease. Our heritage is firmly rooted in values of service, integrity and local community commitment. We’re proud of our history of financial strength, and we know our success is a result of a steadfast focus on truly personal service. Delivering extraordinary service is what we do, what makes us who we are, and what makes us the right choice for so many of our neighbors. Our associates are dedicated to our unique style of community banking – delivering all the resources you want with the attention you deserve. We base our service on the simple promises of providing sincere attention, giving trustworthy guidance, and being a reliable expert, partner and friend. Today our clients enjoy access to full-service banking at every office, as well as convenient electronic banking. We offer a complete menu of deposit accounts, loan options, and trust, wealth management and investment services.
ProfitStars, Booth #103 & 105 1025 Central Expressway South, Allen, TX 75013 Jay McKinney, Opertions Director, (972) 359-5500 E-mail: jmckinney@profitstars.com www.profitstars.com
ProfitStars® is an industry-leading provider of digital commercial lending solutions that help financial institutions and alternative finance companies expand commercial credit, and increase their spread through higher returns. Our dynamic Commercial Lending Center Suite™ incorporates all-digital loan origination, decisioning and portfolio management workflows that save time, improve accuracy and improve the overall borrowing experience. Learn more at profitstars.com/lending-solutions
RapidAdvance, Booth #214 4500 East West Highway, Bethesda, MD 20814 Jeff Schubert, Director of Strategic Partnerships, (770) 714-9000 E-mail: jschubert@rapidadvance.com www.rapidadvance.com DECLINING DEALS DUE TO COLLATERAL SHORTFALL OR CREDIT? OVER-ADVANCE REQUESTS FROM CLIENTS? UNSUBORDINATED INSTRUMENTS IN THE WAY OF CLOSING DEALS? RapidAdvance, a leading provider of subordinated, non-collateralized working capital financing, can help you with inadequate/unacceptable collateral and weak credits. Assetbased finance partners utilize our gap financing to obtain new customers and expand existing relationships. We provide funding for mobilization, work in progress, inventory, purchase orders, supplier deposits, as well as bonded, third party medical and consumer A/R. Direct lender of over $500 million to tens of thousands of business owners. Funds within 7 days. BBB accredited and A+ rated. Win more customers. Extend relationships. Generate additional revenue. Contact us to learn more. Someone’s waiting for a “yes”.
Richey May & Co., Booth #204 9605 S. Kingston Ct., Suite 200, Englewood, CO 80112 Nick Ward, Audit Senior Manager, (303) 721-6131 E-mail: nick@richeymay.com www.richeymay.com
Founded in 1985, Richey May provides assurance, tax and business advisory services to clients throughout the Denver metropolitan area and the United States. The firm specializes in the financial services, alternative investment, mortgage banking, and real estate industries, and offers a wide range of tailored solutions to meet the needs of successful privately-held companies and their owners. WWW.CFA.COM I 35
74th ANNUAL CONVENTION EXHIBITOR GUIDE This specialized approach allows us to serve our clients at a high level. We don’t try to be everything to everyone. We pour ourselves into the industries we serve and are recognized nationally in those industries for our depth and experience. At Richey May, we are proud to have many long-standing client relationships built upon trust and quality service. Our knowledgeable staff is dedicated to identifying new and innovative ways to exceed our clients’ expectations and help them achieve their personal and professional goals. We tirelessly look for ways to add value to our clients – it’s what drives us.
Thomson Reuters, Booth #102 610 Opperman Drive, Eagan, MN 55123 Barb Maslowski, Client Coordinator, (651) 687-7000 E-mail: barb.maslowski@tr.com www.legalsolutions.thomsonreuters.com/law-products/ solutions/clear-investigation-software
Thomson Reuters provides a full-spectrum suite of solutions to address the most pressing fraud prevention and risk mitigation issues present in today’s marketplace CLEAR makes it easier to locate people, assets, businesses, affiliations, and other critical facts. With its vast collection of public and proprietary records, investigators are able to dive deep into their research and uncover hard to find data. Additionally, CLEAR helps you save time by streamlining your research, gathering investigative content into a single, intuitive, customizable environment allowing you to search data and view results in a layout that matches your work method. Live gateway access and Real-time Incarceration Arrest records provides you the most reliable, comprehensive, and up-to-date data for your investigative and due diligence needs. Additionally, the millions of records are always cited and sourced for full transparency to help you analyze your research. Court Express helps you uncover a deeper legal history through document retrieval and due diligence services. Promptly retrieving key documents that are not available online— from anywhere in the US—to perform through and complete due-diligence background checks.
UCC Plus Insurance Fidelity National Title Group, Booth #202 10 S. LaSalle St., Ste. 3100, Chicago, IL 60603 Gary Zimmerman, Senior Vice President, (847) 691-5012 E-mail: gary.zimmerman@fnf.com www.uccplus.com
Fidelity National Title Group’s UCCPlus Risk Management Program provides lien perfection and first priority collateral protection for secured lenders. Commercial lenders view UCCPlus Insurance as a credit enhancement for their commercial loans. The issuance of a UCCPlus Lender’s Policy of Insurance reduces operational risk (and a potential related loss) caused by inadequate documentation, perfection and priority defects, and omissions and errors in the search and filing process. This results in increased credit quality, 36
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reduced secured lender risk, and greater transaction transparency. UCCPlus insures the secured lender’s security interest in commercial loans and loan portfolios for validity, enforceability, attachment, perfection and priority. Most importantly, a UCCPlus Policy protect against fraud, forgery, documentation defects and search office errors and omissions. A UCCPlus Policy includes all necessary UCC search and filing functions. Like all insurance, a UCCPlus Policy provides for cost-of-defense in the event of a third-party challenge to the insured secured lender’s lien perfection and priority.
William Stucky & Associates, Inc., Booth #206 1 Embarcadero Ctr., Ste. 1330, San Francisco, CA 94111 Rosanne Doyle, Vice President, (415) 788-2441 E-mail: rosanne.doyle@stuckynet.com www.stuckynet.com
For 40 years William Stucky & Associates, Inc. (WSA) has produced the most widely used ABL software in the industry. As the industry and technology evolve so do WSA’s solutions, resulting in our signature product: ABLM.NET. Our newest features include The A/R Wizard – an easy to use aging import and analysis tool, as well as a Bought Participation module and an AP Import / Contra Calculation tool - can be seen this year. Our full product line includes ABLM.NET and StuckyNet-Link.NET, NovaCS.NET Factoring System, Stratus. NET Factoring System.
EXHIBITOR AND SPONSOR
Wolters Kluwer, Booth #110 111 8th Ave., 13th Floor, New York, NY 10011 Alexis Jacobson, Sr. Marketing Specialist- Lien Solutions, (713) 533-4658 E-mail: Alexis.Jacobson@wolterskluwer.com www.liensolutions.com
Wolters Kluwer’s Lien Solutions is the leading technology and service provider of comprehensive lien management, debtor due diligence, monitoring, and risk management solution, to financial professionals. Through unmatched industry expertise and a service-oriented culture, we use the iLien suite of products – addressing solutions for asset-backed loans, real-estate, and vehicle title processing and management – to simplify complexity in lien lifecycle management, resulting in more confident lending decisions. Servicing clients across North America, Lien Solutions enables more secured transactions than any other company in the United States. Lien Solutions is a product suite of Wolters Kluwer, headquartered in Houston, Texas. For more information, visit the Wolters Kluwer Lien Solutions website, or follow @ CTLienSolutions on Twitter.
Asset Based Lending
Equipment Finance and Leasing
Brian Schwinn
Vincent Belcastro
617-757-5417
973-232-8400
brian.schwinn@santander.us
vincent.belcastro@santander.us
www.santanderbank.com
Member FDIC
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special advertising section
CONVENTION SPONSORS & EXHIBITORS
THE SIGNS OF FRAUD Leigh Lones, US Director of Equiniti Riskfactor, looks at the Top 5 signs that show something is going wrong with a credit facility, how to spot them early to limit potential losses, and the role robust controls, systems and staff training have in mitigating risk. 1. Fully drawn facilities. There are many good reasons why a business may need to regularly draw everything that is available to them. Periods of fast growth for example or the fundamental cash flow dynamics of their industry. Temporary labor suppliers working on tight margins borrow heavily to meet weekly payroll costs for example. However, heavy utilization may just be to cover losses, and where this isn’t enough, frauds can start. Where a fraud is in progress, full utilization is a common feature, with new borrowing used to repay falsified invoices. 2. Increased Credit Notes and fall in collections This can be a sign of deteriorating product or debtor quality, which is concerning in itself. The underlying causes should be carefully assessed, as the real reasons could be fictitious invoices being credited out before they are overdue. Typical levels of credit notes and collections can be assessed over time for each client and benchmarked against other similar clients in the same sector. Deviations should be investigated, and individual credit notes checked.
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3. Late submission of monthly returns Frauds tend to come in a limited number of forms. In addition to false invoicing, these will include diverting collections to another account, moving aged balances into current months, non- submission of credit notes and misallocation of receipts. Because one knows that sales ledger manipulation will be spotted when the month end returns are submitted, the fraudster will do whatever they can to delay submission. Timescales for submission must be clear and enforced and particular care taken in the analysis of late returns. 4. Cancelled or delayed field exams The Field Exam gives the lender the opportunity to see at close quarters how their Client’s business operates and to sample check transactions. Because of the depth of the testing and the need to see original documents the fraudster has every reason to think he will be uncovered. Field Exams are a powerful deterrent to a fraud starting, and the tests are designed to spot one in action. So, the fraudster will do what they can to avoid it, or thwart it while it is in progress. Look out for last minute cancellations, unavailability of key files or people on the day or attempts to divert attention to irrelevant areas. 5. Staff turnover or change in management behavior Generally, it is the business owner who will start the fraud and make sure it continues. But usually they cannot do this without help. Others – with no stake in the business – become involved. Often, they will leave rather than be drawn into criminality or be dismissed on a pretext if they refuse to help. As the fraud continues – probably
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closely linked to trading losses and creditor demands – pressure mounts and management behavior will change. Further staff turnover may follow, but watch out for complaints, lack of information or cancelled meetings. Often behavioral signs are more telling than what the reports are saying. To successfully combat the risk of fraud losses, the lender needs well trained and experienced staff but above all systems to spot unusual trends in client facilities. An overarching set of documented risk polices, including reporting requirements, escalation procedures and management oversight is also essential.
Leading the way in Risk Management EQ Riskfactor provides market-leading Accounts Receivable and ABL risk management software for commercial lenders. In the UK 90% of lenders choose EQ Riskfactor. The unique risk algorithms enable lenders to quickly detect and prevent fraud, whilst also delivering operational efďŹ ciencies. Book a demo today and ďŹ nd out how we can improve your risk management. Please contact Leigh Lones, Director, North America Email: Leigh.lones@equiniti.com Tel: 404-660-8933 equinitiriskfactor.com
what
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WOULD YOU DO?
n this edition of What Would You Do?, a borrower of Overadvance Bank requests that the Bank waive an event of default arising from the borrower obtaining a secured term loan without the Bank’s prior consent. The Bank is willing to grant the waiver subject to, among other conditions, execution of a satisfactory intercreditor agreement with the term loan lender. However, the term loan lender is unwilling to cooperate with this condition, and the borrower is requesting that the Bank drop the intercreditor requirement, given the Bank’s prior perfected security interest. Is Being First Good Enough? A few years ago, Overadvance Bank extended a $50,000,000 senior secured revolving credit facility to Mismanaged Machinery Inc., a manufacturer of specialty computer parts. Last year, Mismanaged announced plans to expend into specialty car parts, and approached the Bank about providing Mismanaged with a term
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loan to finance the equipment needed to manufacture the specialty car parts. The Bank’s credit committee had several concerns with the request, including a general reluctance to increase the Bank’s exposure to Mismanaged. As such, the Bank denied the request and suggested that Mismanaged might want to solicit proposals from third-party lenders. Of course, the Bank reminded Mismanaged that any third-party financing would require the Bank’s prior written consent under the loan agreement (and, naturally, Mismanaged promised to keep the Bank fully informed of its efforts to obtain thirdparty financing). Six months later, while reviewing the results of its quarterly lien search against Mismanaged, the Bank discovered that an “all asset” UCC-1 financing statement had been filed against Mismanaged by Equipment Lender Inc. The Bank called the CFO of Mismanaged to inquire about the filing, and was told by the CFO that Mismanaged had just closed a $7,500,000 term loan with Equipment Lender to finance the newly created line of specialty car parts. The CFO said he had planned to solicit consent from the Bank in advance of closing, but because the transaction closed so quickly, it “slipped his mind”. The CFO apologized for his oversight, and requested that the Bank waive the resulting event of default under the loan agreement. The Chief Credit Officer is less than thrilled that Mismanaged’s CFO is asking for forgiveness, rather than permission, for obtaining secured financing from Equipment Lender. Nevertheless, the Chief Credit Officer is generally comfortable with the credit overall, and therefore indicates a willingness to grant the waiver, subject to certain conditions, including
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execution and delivery of a satisfactory intercreditor agreement with Equipment Lender. A few days later, the CFO of Mismanaged calls the Bank to discuss the Bank’s requirement for an intercreditor agreement with Equipment Lender. Despite Equipment Lender having filed an all assets UCC-1 financing statement, the CFO says that he would rather avoid the cost and expense associated with the negotiation of an intercreditor agreement, and that Equipment Lender does not think an intercreditor agreement is even necessary, as it accepted its junior lien status vis a vis the Bank when it closed the term loan. The CFO tries to persuade the Bank that it should nevertheless be “OK” because the Bank’s “all asset” UCC filing predates Equipment Lender’s “all asset” UCC filing by almost two years. As such, the CFO requests that the Bank waive the requirement for an intercreditor agreement from Equipment Lender. If you were the Chief Credit Officer of Overadvance Bank, what would you do? Pursuant to Section 9-322 of the Uniform Commercial Code, the first secured creditor to file a financing statement covering collateral or otherwise perfect a security interest in collateral will generally have priority over a competing security interest in the same collateral. Here, Overadvance Bank filed its UCC-1 financing statement against Mismanaged years before Equipment Lender filed its UCC-1 financing statement against Mismanaged. As such, under the express terms of the Uniform Commercial Code, Overadvance Bank’s security interest will have priority over Equipment Lender’s security interest in all assets other than the specific equipment financed by Equipment
what would you do?
“For example, under the Uniform Commercial Code, even a junior secured creditor has a right to dispose of or foreclose on collateral following an event of a default. Absent an intercreditor agreement with a remedies standstill provision, Equipment Lender would have the right under the Uniform Commercial Code to liquidate junior lien collateral post-default. Of course, the senior lien creditor’s security interest would continue in any collateral sold by the junior lienholder without the consent of the senior lienholder, as well as in proceeds realized by the junior lienholder from postdefault dispositions of the collateral.”
Lender. As the priority of Overadvance Bank’s security interest vis a vis Equipment Lender is already established by operation by law (i.e., the Uniform Commercial Code), Mismanaged’s CFO is correct that Overadvance Bank does not need an intercreditor agreement to re-iterate that priority. However, the Chief Credit Officer of Overadvance Bank is well aware that lien priority, while perhaps the most important point, is but one of many rights and protections typically addressed in an intercreditor agreement. For example, under the Uniform Commercial Code, even a junior secured creditor has a right to dispose of or foreclose on collateral following an event of a default. Absent an intercreditor agreement with a remedies standstill provision, Equipment Lender would have the right under the Uniform Commercial Code to liquidate junior lien collateral post-default. Of course, the senior lien creditor’s security interest would continue in any collateral sold by the junior lienholder without the consent of the senior lienholder, as well as in proceeds realized by the junior lienholder from post-default dispositions of the collateral. However, as the senior lienholder, Overadvance Bank would presumably want the exclusive right, or at least the first chance, to control the liquidation process of its collateral. And that issue is typically addressed with a remedies standstill provision in an intercreditor agreement. Similarly, the Uniform Commercial Code also allows a junior secured creditor to collect directly from account debtors. Further, in certain instances, the junior secured creditor may be entitled to retain the proceeds of those collections free and
clear of the senior security interest. That possibility is also typically addressed in an intercreditor agreement. It is also not unusual for a revolving loan lender to condition or restrict payment to other lenders, such as by conditioning payment on satisfaction of minimum availability thresholds or other financial covenants. Those conditions could, of course, be included in the loan agreement between the revolving loan lender and the borrower. However, unless the other lenders agree to be bound by those conditions, such as through an intercreditor agreement, the revolving loan lender will not have recourse against the other lenders should its borrower make payments to such other lenders in violation of the payment conditions. For all of these reasons, the Chief Credit Officer is unwilling to waive the condition for an intercreditor agreement with Equipment Lender. While he appreciates that neither Mismanaged nor Equipment Lender shares his desire for an intercreditor agreement, Mismanaged is in default of the Bank’s loan agreement, and he thinks that both Mismanaged and Equipment Lender will prefer an intercreditor agreement, as opposed to the alternative of the Bank having to enforce its senior lien rights against the collateral. We hope you enjoyed the column and, of course, are always interested in your feedback. As such, if you have any scenarios you would like to see discussed in a future column, please let us know at Dfiorillo@otterbourg. com or Jcretella@otterbourg.com. TSL Dan Fiorillo and Jim Cretella are Members of the law firm Otterbourg P.C.
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the cfa brief AMONG CFA MEMBERS
CFA NEWS IN PRINT
Axiom Bank, N.A. acquired Dallas-based Allied Affiliated Funding, L.P. (Allied). This acquisition adds a lender finance line of business, scalable factoring and an asset-based lending platform to Axiom. In addition, bringing together two companies with complementary strengths and cultures will provide a platform to extend Axiom’s business banking solutions across a larger market area. Clay Tramel, chief executive officer at Allied Affiliated Funding, added, “Axiom is a Florida-based nationally chartered bank with a strong entrepreneurial spirit that is focused on maximizing clients’ potential. Combining forces helps us to deliver on a shared vision with greater creativity by offering new exciting products, including asset-based lending, in the marketplace.” Tramel will remain CEO at what will now be known as Axiom Factoring. Gen Merritt-Parikh will be in charge of the day-to-day operations as president. Acquisition is a pillar of Axiom Bank’s ongoing growth strategy, which also includes branch expansions (the most recent of which is located in Orange County’s growing Hamlin development); the launch of AxiomGO, a cutting-edge mobile banking app; and the addition of staff with specialty expertise. Axiom was also recently approved as an SBA preferred lender, a designation that allows the bank to independently approve and underwrite SBA 7(a) loans.
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Axiom Bank, N.A. also announced it was recently named a “Preferred Lender” by the U.S. Small Business Administration (SBA). This designation allows it to expedite the loan-approval process for commercial customers. To achieve this designation, Axiom Bank was required to meet specific metrics demonstrating its expertise and ability to handle a large volume of SBA loans. The bank maintains dedicated resources to SBA. Its VP, SBA manager is Scott Amatuccio. Achieving Preferred Lender status is part of Axiom Bank’s ongoing growth strategy, which also includes acquisitions; branch expansions (the most recent of which is located in Orange County’s Hamlin development); the launch of AxiomGO, a checkless checking account with a cutting-edge mobile banking app; and the addition of staff with specialty expertise. Bank Leumi USA: Dan O’Donnell was hired as the new head of credit, based in its New York headquarters. In this role, O’Donnell will be responsible for overseeing portfolio management and underwriting functions, while ensuring strong credit quality as the commercial banking business continues to grow. He will report to the head of Commercial Banking, Shawn McGowen. O’Donnell has more than 25 years of banking experience in both lending and credit environments, primarily covering large and mid-corporate and middle-market segments in a variety of industries. Prior to joining Bank Leumi, O’Donnell was a senior vice president and senior credit officer with Fifth Third Bank, where he was responsible for national coverage of the $15 billion corporate banking segment. Prior to Fifth Third, Dan spent nearly 10 years with Wells Fargo Bank and was focused on general commercial and industrial
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lending in the Northeast and managing a portfolio with credit exposure of $2 billion. O’Donnell has a B.S. in finance from Rutgers University and an MBA in Finance and International Business from NYU’s Stern School of Business. Capstone Capital Group, LLC: Thomas J. Ingrassia was promoted from corporate finance manager to vice president of due diligence and underwriting. David B. Culotta earned a promotion from senior associate to corporate finance manager and Jessica Grille was promoted from due diligence analyst to senior analyst. Ingrassia joined Capstone in 2008 and is currently the vice president of underwriting and due diligence. His primary responsibilities include the management and review of due diligence materials submitted by prospective clients, the underwriting of new accounts into Capstone, purchase order and factoring account management and internal risk management. In addition, Ingrassia works with investors to provide information about financing opportunities with Capstone, develops advanced financial models for both internal and external applications on an ad-hoc basis as well as manages the internal information technology infrastructure and databases. Prior to joining Capstone, Ingrassia managed the Prime Brokerage Operations team for Goldman Sachs Group Inc. which had employees in New York City, Salt Lake City and Bangalore, India. During his tenure he executed trades and managed collateral positions for all of the hedge fund client’s accounts with the firm throughout the financial crisis. Culotta has been with Capstone since 2010, most recently serving as a senior associate. Culotta’s current responsibilities include operations management, business development, policy and procedure oversight, due
diligence and risk management, client relationship management, marketing, and employee recruitment. Culotta serves on Capstone’s Credit Committee and specializes in financial modeling, financial statement analysis and preparation, credit and collections, operations analysis, and digital marketing. Culotta has held various managerial roles and has more than 14 years’ experience in the accounting industry including public and private sector as well as in the finance and banking industries. He graduated from Canisius College with a Bachelor of Science degree in accounting and is currently pursuing his Certified Managerial Accountant (CMA) certification. In her current role, Grille is responsible for credit analysis, credit approval, due diligence analysis for clients, client relationship management, and social media marketing. Prior to joining Capstone last year, Grille was busy with her studies at Pace University. Grille earned the cum laude designation upon graduation after earning a Bachelor of Business Administration in finance with a minor in economics. CIBC: Mike Williams joined as managing director, CIBC Bank USA, in Chicago responsible for business development in the Midwest for asset-based lending. Williams brings 20 years of asset-based lending related experience. Most recently, he served as managing director of originations in the Midwest Region for middle-market, asset-based and cash-flow transactions for Regions Business Capital in Chicago. CIT Group Inc. announced it is expanding its Business Capital team with the addition of two business development officers to help support growth initiatives for business technology solutions. Aaron Kaplan joins CIT as vice president of sales and business develop-
ment in technology for CIT’s Equipment Finance unit with focus on the vendor channel. Kaplan has a background in technology sales and experience growing mid-market and small business finance volume through the reseller community. Kaplan was instrumental in the development and rollout of programs at Dell EMC and Hewlett Packard Financial Services. Also joining CIT is Mike Hampton as vice president of business development in technology for CIT’s Equipment Finance unit with focus on the OEM space. Hampton is based in Silicon Valley but covers the entire U.S. with particular focus on manufacturers looking to leverage financing options to grow their business. Hampton brings deep experience in financial services in the OEM captive environment with positions at Cisco Capital, Apple and Juniper Networks. Separately, Business Capital is also expanding the role of Chris Wren, vice president of business development franchise strategy, to encompass consumer-facing, multi-unit businesses in restaurants, hospitality and other franchised segments. In this role, Wren will leverage his 17 years of experience at Yum Brands, parent company for KFC, Taco Bell and Pizza Hut. During his tenure at Yum, Wren worked in positions of increasing responsibility roles in domestic and international finance, strategy, franchising and business development. His prior experience also includes working for Dine Brands Global, parent of IHOP and Applebee’s, where he led their international franchising and development efforts. CIT Group Inc. also announced that Randy Kaploe was appointed to the senior leadership team of CIT’s Rail division. Kaploe joins as senior vice president and will lead the Rail division’s sales efforts along the U.S. Gulf Coast,
in Mexico and in Western Canada. In addition, he assumes responsibility for managing sales involving the plastic hopper and tank car leasing platforms. Kaploe succeeds Jeff Lytle, who became president of the Rail unit in April. Kaploe comes to CIT from Trinity Rail, where he was most recently employed as sales director. He has also served as a senior account manager, portfolio manager and quality leader at GE Capital Rail Services. He is a veteran of the U.S. Army, in which he served as a commissioned officer, and is a member of the Midwest Association of Rail Shippers and the Chicago Traffic Club. CIT Group Inc. announced that it has added a senior leader to its Communications & Technology Finance team in its Commercial Finance division. Jason Cha joins CIT as director of originations, with primary responsibility for expanding its existing coverage network to better serve technology-oriented private-equity sponsors, including those based on the West Coast. The Communications and Technology group provides financing solutions to middlemarket software, technology-enabled services and hardware businesses nationwide. “Focusing on asset growth is a priority for our Communications & Technology Finance business. We are pleased to add Jason’s significant experience in leveraged finance for technology sponsor portfolio companies,” said Thomas Westdyk, managing director and group head for Communications & Technology Finance. “I am confident Jason will be a valuable contributor as we aim to increase our assets and expand our coverage nationally.” Cha began his career with the Leveraged Finance group at Lehman Brothers/Barclays Capital, where he focused on raising acquisition and other leveraged financings for leading technology private-equity sponsors.
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Joerg Obermueller was named the managing director of the Supply Chain Finance business within CIT Group’s Commercial Services division. In his new role, Obermueller will be responsible for assembling a team, building new client relationships, developing strategies to address new target markets and ensuring outstanding customer service and satisfaction. Obermueller joins CIT from Deutsche Bank AG New York, where he had been head of supply chain finance sales, North America. Earlier in his career, he also worked in supply chain finance and factoring at Postbank, later acquired by Deutsche Bank. CIT’s Commercial Services business is one of the nation’s leading providers of credit protection, accounts receivable management and lending services to consumer product companies, manufacturers, dealers, importers and resellers. Crestmark announced several staff promotions and appointments in its East Division, which represents the eastern half of the United States and includes Crestmark’s offices in Florida, Michigan and New York. Eva Chaleff was promoted to assistant vice president, underwriter, from underwriting officer. Based in Boynton Beach, FL, she reports to John Trendell, senior vice president, underwriting manager for the Midwest region. Chaleff began her Crestmark career in 2015 as a field exam intern, and later served as a staff field examiner. She was promoted to junior underwriter in 2016. She earned a bachelor degree in business administration from Florida Atlantic University. Adam Colley has been promoted to first vice president and East Division underwriting team leader from vice president, senior underwriter. Based in Troy, he reports to John Trendell, senior
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vice president, underwriting manager for the Midwest region. Since joining Crestmark in 2006, Colley has served as a client analyst, field examiner, and underwriting analyst; and in early 2013, he was promoted to assistant vice president, underwriter. Later that year, he was again promoted to vice president; and in 2014, was promoted to senior underwriter. He earned both a master degree and a bachelor degree in finance from the Walsh College of accountancy and business administration. Lolita Edwards has been promoted to account executive, officer, from client services representative, officer. Based in Boynton Beach, FL, she joined Crestmark in 2001 with the company’s acquisition of the factoring company Westgate Financial, where she started as an office manager in 1994. Jean Hellmann has joined Crestmark as vice president, senior account executive for the Midwest region. Based in Troy, she reports to Jeff Silverstein, senior vice president, portfolio manager. Previously, Hellmann has served as a personal banker for Flagstar Bank; as vice president, relationship manager for Bank of America; as vice president, portfolio manager for Wells Fargo; as assistant vice president, commercial loan manager for NBD Bank; and field examiner and audit manager for National Bank of Detroit. Hellmann earned a bachelor degree in accounting from Michigan State University. Jacob Holmes has been promoted to vice president, account executive, from assistant vice president. He is based in Boynton Beach, FL, and reports to Jeff Silverstein, senior vice president, portfolio manager. Holmes joined Crestmark in 2012 as field examiner for the Southeast region. Holmes earned a bachelor degree in business administration (business/finance/accounting) from Northwood University. Brian Kwiatkowski has been pro-
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moted to joint venture analyst officer in Crestmark’s Troy location, which houses the Joint Ventures Group, under the direction of Larry Pearce, executive vice president and Joint Ventures Group president. Kwiatkowski joined Crestmark in 2013 as an invoice analyst, and in 2015 he became a junior field examiner; and then joined the Joint Ventures Group as a joint ventures analyst in 2017. He earned a bachelor degree in finance from Oakland University. Benji Sarjoo has joined Crestmark as assistant vice president, account executive for the Trade Services Division. Based in New York, he has more than 30 years of commercial finance experience. Previous roles include: supervisor at Best Match Corp; credit analyst at Milberg Factors; accounts receivable specialist at Webster Associates Development; senior loan administrator and receivables specialist at HSBC Business Credit; and senior accounts receivable specialist at Bank of New York. Sarjoo earned a bachelor degree in accounting from Lehman College. Damion Taylor has rejoined Crestmark as vice president, account executive for the Midwest region. Based in Troy, he reports to Jeff Silverstein, senior vice president, portfolio manager. Taylor previously served as senior vice president and portfolio manager for Sterling Commercial Credit; vice president, relationship manager for PNC Business Credit; first vice president, portfolio manager and vice president, account executive for Crestmark from 2006-14; with previous mortgage, loan, and credit experience at Charter One Bank, Washington Mutual, Fifth Third Bank, GMAC Business Credit, and Bank One (formerly NBD Bank). Taylor earned a master degree in business administration, finance from Wayne State University and a bachelor degree in accounting and finance from Central Michigan University.
Express Trade Capital, Inc.: Helen Ku was promoted to senior vice president and client portfolio manager. The announcement was made by Mark Bienstock, managing director. “We are extremely pleased to recognize the significant talents that Helen has exhibited during her tenure at ETC. Her client-centric approach, attention to detail, and ability to recognize and react to all client and prospect-related challenges in a timely and creative manner, uniquely qualifies Helen for this significant promotion. At ETC we emphasize recognizing and promoting talented individuals while empowering them with the authority to achieve goals as a team.” FSW Funding: Anthony Fortunato was hired as underwriting manager. Fortunato will oversee the underwriting process as well as manage the asset-based lending portfolio. “Anthony and FSW have a long history and we are excited to have Anthony join our team again. He brings over 21 years in the factoring and asset-based lending industry which is a huge asset to FSW as we continue to grow,” Robyn Barrett, founder and managing member of FSW Funding, said. “Anthony will be a key player as we continue to expand our reach and help finance more companies throughout the U.S.” Fortunato attended Arizona State University where he focused his studies on business management at the W.P. Carey School of Business. After college, he began his career in factor financing as an account manager with a Bay Area factoring company in northern California, and quickly moved up the corporate ladder to the position of business development officer. He then relocated to Utah, joining Summit Financial Resources where he was hired as assistant vice president. After two years in Utah, Fortunato returned to Arizona to help
launch Landmark Business Capital LLC. Prior to joining FSW Funding, Fortunato worked for Rexford Funding as senior vice president of operations and Bibby Financial Services serving as vice president of underwriting. Gibraltar Business Capital: Jessica Moyer has been promoted to senior vice president of marketing and operations and Agnes Falconer has been promoted to vice president of operations. Gibraltar also welcomes Diane Jankowski as the new vice president, loan restructuring officer. In her new role, Moyer will expand upon her previous role as SVP, Marketing to oversee the newly created Operations Team. “We are fortunate to have a leader like Jessica and believe she is uniquely qualified to lead our new operations team,” stated Gibraltar CEO Scott Winicour. “Since joining Gibraltar two years ago, Jess has improved our business in so many ways. Her broad financial services expertise, strategic thinking strengths, and general business acumen allow her to shape our strategy as we continue to expand. She’s an incredible asset to our team.” Moyer will leverage 20 years of diverse financial services experience including over 10 years in leadership positions with Discover Financial Services, Sears Financial Services, and Merrill Lynch Business Financial Services. Falconer joined Gibraltar in 2009 as an account executive and then became a portfolio manager in 2013. In her new role as VP of operations, she will lead operations and credit analysts and report directly to Moyer. “Agnes has a proven track record at Gibraltar and she is well prepared to take on this new leadership role,” said Winicour. “She will oversee the performance and growth of credit analysts while identifying opportunities to gain
efficiencies and creating opportunities for members of her team to learn other areas of the business. She is an integral part of Gibraltar and shares our commitment to excellence.” Jankowski joins Gibraltar from TCF Inventory Finance, where she specialized in underwriting floor planning transactions for over 10 years. Prior to her inventory finance career, Jankowski spent 12 years with American National Bank’s asset-based lending group working in various credit roles. She has been eager to get back into the asset-based lending space and found Gibraltar to be an ideal fit with her aspirations and experience. Gordon Brothers: Duncan Ainscough has joined the team in Europe to head up the Valuation and Industrial Division. Ainscough has deep knowledge and understanding of used equipment markets, having held senior management roles with leading global surplus asset management and valuation firms. Ainscough will be based in the London office, but will serve the market across Europe, building on the existing valuation platform and expanding the industrial practice. Across all industrial sectors he will look to acquire obsolete or surplus assets, providing risk-free, guaranteed and immediate capital for companies during restructuring or M&A processes. Heinz Weber, president of Gordon Brothers in Europe said, “We are very excited to welcome Duncan to the team. He brings over 25 years’ experience in commercial and industrial assets and we are keen to see how our capital can be put to work in acquiring and selling machinery and equipment across Europe.” Gordon Brothers offers robust liquidity solutions against the full spectrum of industrial assets. Ainscough will focus on expanding the firm’s European
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commercial and industrial activity, complementing the firm’s industrial operations across Brazil, Australia, Japan, the U.S. and Canada. Gordon Brothers Finance Company: Peter Jaffe has been appointed as managing director to lead its financing platform in the U.K. and Europe. Gordon Brothers Finance Company is a commercial finance company focused on middle-market lending worldwide. The company originates asset-based loans across a wide spectrum of industries. Since its foundation in 2014 it has deployed approximately $700 million of financing for 40 companies across a range of industry sectors. Gordon Brothers Finance Company maintains an ongoing relationship with Gordon Brothers, which enhances Gordon Brothers Finance Com-
pany’s deep understanding of assets. “We have financed a number of U.K. and European-based middle-market companies over the past several years and felt we needed to have a senior, well respected finance professional on the ground to ensure we are strategically well placed for this significant market opportunity,” stated Gene Martin, CEO of Gordon Brothers Finance Company. “We are delighted to welcome Peter to the Gordon Brothers Finance Company family.” Larry Klaff, senior managing director of Gordon Brothers Finance Company, added, “I have covered the U.K. and European market for the past six years and strongly believe that middlemarket companies need more financing options and choices. By having Peter in London, we will be able to provide inno-
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vative solutions in a proactive manner.” Jaffe brings significant experience to Gordon Brothers Finance Company’s European proposition as it seeks to add to its portfolio of assets from its London base. He has over 20 years’ experience across the European financing markets. From 1997 to 2013, Jaffe held various roles at JPMorgan across leverage finance and credit, including as a managing director and Head of the Restructuring Group. From 2013 to 2017, Jaffe was a founding partner of Grovepoint Credit, an alternative debt provider. “Banks and other capital providers have neglected the many middle-market companies across Europe that need innovative capital solutions to grow and contribute towards the economy. Gordon Brothers Finance Company is ideally placed to provide these types of capital solutions to meet these requirements,” Jaffe stated. “I am looking forward to working with this marketleading team to continue building their European presence.” Hitachi Capital America Corp. (HCA): Chuck McKay has joined the company as vice president of corporate development, responsible for managing business planning, strategic marketing, and acquisition targeting across HCA. McKay brings over 25 years of financial services experience including significant strategy, marketing, and corporate development roles at GE Capital, MasterCard, and most recently Prudential. At GE Capital, McKay had leadership roles in corporate development, including leading a multi-year initiative to build a business in Japan; strategy, including leading GE Capital’s annual strategic planning process globally; and marketing, including leading go-tomarket execution for middle-market energy lending. He began his career at Accenture where he led strategy, transformation, and technology projects for
major financial institutions including Nikko Securities, Goldman Sachs, and Chemical Bank. “We are thrilled to have Chuck join HCA. He brings a unique combination of important functional capabilities across a broad range financial services sectors with particular depth in specialty finance, and he has significant experience living and working internationally, including Japan,” said Mark Duncan, executive vice president, commercial finance & corporate development. “Chuck will be instrumental in driving the identification, evaluation, and implementation of corporate development initiatives as HCA seeks to achieve its strategic growth objectives.” MidCap Business Credit: Lisa Lepri will be responsible for managing the operations and collateral department. Lepri has been in asset-based lending for 30 years and has worked for several financial institutions. Most recently employed with R B International as a collateral officer where she supported several different types of lending for 14 years. Lepri has helped develop collateral and operating systems as well throughout her career. Peter Rutigliano, EVP / chief risk officer stated, “We are excited to have added Lisa to the MidCap team. Her deep knowledge and experience of operations and asset-based lending will allow MidCap to continue its steady growth pattern going forward”. North Mill Capital and Gemino Healthcare Finance are pleased to announce that Justin Williams has joined Gemino Healthcare Finance and will also be working with North Mill Capital. Williams will be focused on marketing and loan origination in the southwest. “I am very excited for the opportunity to join such a strong organization with a rich history of success,” said
Williams. “Gemino is leading the charge in healthcare finance and I look forward to contributing to the team.” “We look forward to Justin joining the team and expanding our presence in the southwest,” said Dan Tortoriello, executive vice president. “He brings an energy and enthusiasm to get deals done.” Williams can be reached at: D: (770) 321-4033 Ext. 201; C: (210) 284-2260; Justin.Williams@gemino.com. Opus Bank (Opus): announced further expansion of its Commercial Banking team in the Los Angeles metropolitan region with the hire of two senior bankers. Jennifer Foster, a 25-year banking veteran, and Nicole Nilos, a 13-year banking veteran, both joined Opus as managing director, senior client manger, and are responsible for expanding Opus’ commercial and corporate client base in the San Fernando Valley and Santa Clarita Valley regions of Los Angeles County. Jim Haney, executive vice president, head of Commercial Banking, stated, “We are proud to have both Jennifer and Nicole join Opus’ Commercial Banking team to further expand our Commercial Banking client coverage in the San Fernando Valley and Santa Clarita Valley regions. Jennifer and Nicole are highly regarded bankers, each with a wealth of experience structuring and delivering asset-based, acquisition, SBA, and term financing; treasury management services; and owner-occupied real estate lending solutions to entrepreneurs, business owners, and lowermiddle and middle-market companies in the Los Angeles metropolitan area.” Foster joins Opus most recently from City National Bank, a subsidiary of Royal Bank of Canada, where from 2017 she served as vice president, senior relationship manager. While at City National Bank, Foster focused on
developing client relationships with business and commercial clients and professional services firms in the San Fernando Valley and Santa Clarita Valley regions of Los Angeles County. Foster’s 25-year banking career includes serving as vice president, relationship manager at MUFG Union Bank, where she was responsible for managing and growing a portfolio of middlemarket commercial clients in the Los Angeles metropolitan area; serving as vice president, senior relationship manager with Chase Bank, where she focused on owner-occupied real estate, working capital lines of credit, assetbased, acquisition, and SBA 504 and 7A financing, as well as depository and treasury management opportunities in the San Fernando Valley; serving as vice president, senior relationship manager with Comerica Bank, where she was responsible for managing and growing a portfolio of asset-based, senior term, commercial real estate, working capital, and SBA loans; and in commercial banking business development roles with Santa Barbara Bank & Trust and Wells Fargo Bank. Nilos joins Opus most recently from City National Bank, where from 2016 she served as vice president, senior relationship manager. While at City National Bank, Nilos focused on developing new client relationships with lower middle-market companies and originated working capital lines of credit, asset-based, commercial real estate, trade finance, and SBA senior debt transactions. From 2010 to 2014, Nilos served with US Bank, most recently as vice president, commercial banking relationship manager and was responsible for managing and growing a portfolio of middle-market commercial clients in the San Fernando Valley and Santa Clarita Valley regions. Nilos’ earlier roles at US Bank include serving as vice president, sales branch man-
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ager; regional business banking officer; and District Small Business Specialist. During her tenure with US Bank, Nilos ranked as one of the bank’s Top Performers for five consecutive years. Nilos began her banking career in 2005. Nilos is active in the community, serving as Career Pathways Committee Member and Chancellor’s Circle Member at the College of the Canyons, and Chair of the Education Committee of the Valley Industry Association, where she received the Valley Community Leadership Award and was nominated as Business Volunteer of the Year. Jim Wullschleger has joined Opus as director, business banking team lead. Wullschleger, a 41-year banking veteran, is responsible for expanding Opus’ Business Banking client base, as well as for leading, managing, and growing Opus’ Business Banking division’s impact and presence in Los Angeles County. Wullschleger joins Opus most recently from Umpqua Bank, where from 2017 he served as senior vice president, business banking manager, led the expansion of its Business Banking division into Southern California, and built and managed a team of business bankers to service the market. From 2014 to 2017, Wullschleger served as senior vice president, business banking credit manager at City National Bank, where he directed a team of credit officers in three states responsible for underwriting, structuring, and managing a $700 million portfolio comprised of operating lines, term loans, letters of credit, owner-occupied and investment real estate credit, and asset-based lending products. Wullschleger first joined City National in 2008 and initially served as senior vice president, director of business banking focused on the development and implementation of the division’s sales strategy, managing a portfolio of $3 billion of deposits and $600 million of loans outstanding,
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and leading the reorganization of the division’s sales efforts by creating, hiring, and managing a new Business Banking sales team comprised of over thirty bankers and 200 banking officers. From 2001 to 2008, Wullschleger served as senior vice president, commercial banking officer at First Bank, and subsequently as senior vice president, manager of Business Banking Center, where he led a team of relationship officers and credit officers responsible for underwriting business credits, coordinating sales of all business banking products, and developing new business opportunities via direct marketing for all branches in California. From 2000 to 2001, Wullschleger served as vice president, business banking manager at Manufacturers Bank, where he led a team of credit officers and managed a portfolio of business credits for companies with revenues up to $20 million. From 1993 to 2000, Wullschleger served as vice president, business banking manager at Sanwa Bank, where he led a team of commercial bankers in the underwriting and management of the bank’s commercial loan portfolio, and hired and managed its SBA Department, and its team of thirty employees. NXT Capital Inc.: ORIX Corporation USA (ORIX USA), the U.S. and Latin America business hub for Tokyo-based ORIX Corporation (ORIX), and NXT Capital Inc. (NXT Capital) announced they have signed a definitive agreement under which ORIX USA will acquire NXT Capital. The acquisition combines the financial strength and innovative capital solutions of ORIX USA with NXT Capital’s leadership position as a provider of structured financing to the U.S. middle market. “The addition of NXT Capital will accelerate our position as a hybrid middle-market lender and asset manager, allowing ORIX USA to expand our
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participation into larger, more strategic investments and strengthen our competitive advantage as a top-tier provider of capital to middle-market companies and real estate investors.” Based in Chicago, NXT Capital provides a full range of structured financing solutions on a direct basis through its Corporate Finance and Real Estate Finance groups. NXT Capital manages capital for third parties through its asset management platform and offers investors proprietary access to primarily first lien senior secured loans that are not broadly traded or otherwise generally available without a loan origination platform. “We look forward to partnering with a company that has a track record for innovation and growth,” said Robert E. Radway, NXT Capital chairman and CEO. “All of our stakeholders—including sponsors, asset management clients and our employees—will benefit from ORIX USA’s global platform, leadingedge approach to business development and financial strength. We’re pleased with the confidence that ORIX USA has shown in our platform and employees, and are poised for a new chapter in our company’s history, focused on continued growth and delivering strong results for our asset management clients.” NXT Capital will become a subsidiary of ORIX USA, with Radway continuing to serve in his current role as Chairman and CEO. Radway and the current management team will continue to operate NXT Capital under its existing brand and will remain headquartered in Chicago. The acquisition is expected to close in August 2018, subject to customary closing conditions and regulatory approvals. Advisors for ORIX USA on the transaction included Houlihan Lokey Inc. as financial advisor and Davis Polk & Wardwell LLP as legal advisor. For
NXT Capital, J.P. Morgan Securities LLC served as exclusive financial advisor and Kramer Levin Naftalis & Frankel LLP as legal advisor. Since 1981, ORIX USA has provided innovative capital solutions that clients need to propel their business to the next level. ORIX USA and its subsidiaries—Boston Financial Investment Management, Lancaster Pollard, Mariner Investment Group, RB Capital and RED Capital Group—include a team of more than 900 employees spanning more than 30 offices across the U.S. and Brazil. ORIX USA and its family of companies have $57 billion of assets under management, administration and servicing (including $8.6 billion held by the company and its subsidiaries). Its parent company, ORIX Corporation, is a publicly owned international financial services company with operations in 38 countries and regions worldwide. ORIX Corporation is listed on the Tokyo Stock Exchange (8591) and New York Stock Exchange (IX). For more information on ORIX USA, visit www.orix.com. NXT Capital is a leading provider of structured financing to the U.S. middle market. Since its formation in 2010, the company has originated approximately $20 billion in total financing volume spread over 600+ transactions. With approximately $12 billion of committed capital at its disposal, NXT Capital provides a full range of structured financing solutions on a direct basis through its Corporate Finance and Real Estate Finance groups. NXT Capital manages capital for third parties through its asset management platform and offers investors proprietary access to primarily first lien senior secured loans that are not broadly traded or otherwise generally available without a loan origination platform. Investment offerings include levered and unlevered funds, separately managed accounts and CLOs. NXT Capital’s investor base includes public
and private pension plans, insurance companies, endowments, foundations and other institutional investors. NXT Capital Investment Advisers LLC, a subsidiary of NXT Capital LLC, is registered with the SEC as an Investment Adviser. With approximately 120 professionals, NXT Capital is based in Chicago with offices in Atlanta, Dallas, Los Angeles, Nashville, New York and Phoenix. For more information on NXT Capital, visit www.nxtcapital.com. People’s United Bank, N.A.: Gregory Russano was hired as senior vice president, regional manager for People’s United Business Capital. Russano will be responsible for a new business team covering New Jersey and Pennsylvania and will be based in Iselin, NJ. Russano brings more than 25 years of secured lending experience to People’s United Business Capital. His prior roles include various new business development and relationship management positions with Santander Bank, Bank of America and National Bank of Canada. He is an active member of the CFA, TMA and ACG. Russano received his Bachelor degree in accounting from Franklin & Marshall College, and an MBA with a concentration in corporate finance from Fairleigh Dickinson University. “Russano brings a proven track record and an extensive network to People’s United Business Capital, which will support efforts to build and grow the bank’s asset-based lending business in the NJ Metro area,” said Mike Maiorino, executive vice president of Specialty Lending, People’s United Bank. Sallyport Commercial Finance expands their underwriting department by hiring William Garcia as underwriting analyst. William Garcia born in Southern California, holds a (BS) in Finance from California State University, Chico.
He brings experience from multiple summer internships in the factoring/ asset-based lending industry, working in both operations and underwriting. William has recently relocated from Southern California to Houston, TX to assist in underwriting at Sallyport’s corporate office. “I am delighted to have William join our underwriting team. Our ability to attract and develop new talent entering the finance industry is key to our longterm growth and aspirations. We are excited to have William begin his career in finance with Sallyport Commercial Finance with his can-do attitude and strong work ethic, we believe William has all the tools needed to be successful and develop a strong career in Commercial Finance.” – Damon Dickens, VP, Risk and Underwriting. Sterling National Bank announced key additions to its Commercial Banking and Commercial Finance business units. In its New York Metro Market, Sterling welcomes two new team members. Paul Keshian joined as senior managing director and senior vice president, responsible for commercial real estate and multifamily relationships. Keshian most recently served as vice president with Santander Bank. Jeffrey Ackerman joined as managing director and vice president, focusing on middle-market commercial loans and deposit relationships. Ackerman also joins Sterling from Santander Bank. Collectively, they bring diverse experience in servicing the needs of middle-market clients in the greater New York metropolitan area. In the Westchester market, the bank added Steven Silverberg as managing director and vice president, responsible for managing commercial loan and deposit relationships. Silverberg joins Sterling from Customers Bank. Joining in the New Jersey market, Sterling welcomes James Meicke as
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managing director and vice president. Meicke will focus on commercial real estate financing opportunities. Meicke comes to Sterling from Amboy Bank. “We are very pleased to welcome such talented new colleagues, who bring deep expertise in commercial and asset-based lending,” said Tom Geisel, Sterling’s senior executive vice president and president of Corporate Banking. “These are bankers who have strong business acumen and offer rich backgrounds in client service. The addition of these colleagues will augment the growth aspirations of Sterling, and continue our focus on driving our clients’ businesses forward.” Triumph Business Capital: Carrie Jenkins has joined as vice president, business development officer to their sales team. Jenkins’ primary function will be to provide cash flow solutions through invoice factoring services to businesses on the West Coast. Jenkins reports to Blaine Waugh, senior vice president, business development. Jenkins has more than 27 years of experience in the finance industry and has closed more than 500 transactions in both factoring and asset-based lending. Before joining Triumph, Jenkins spent two years with Crestmark Bank sourcing asset-based loans. Her other positions have included: 14 years with UC Factors as a business development manager; vice president for the Lawrence Financial Group; vice president, lending officer for Capital Business Credit, and portfolio officer in both the Business Recovery and Small Business Lending Divisions of Foothill Capital Corporation. “Having known Carrie for over 20 years, both as a colleague and competitor, I’m very excited to have her join the Triumph team,” said Waugh, senior vice president, sales at Triumph Business Capital. “Carrie brings with her a wealth
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of knowledge, from factoring to ABL, as well as an extensive network of referral sources that she’s cultivated over the years, which will be integral to growing the Triumph footprint across the West Coast.” Carrie holds a bachelor degree in psychology from California State University, Northridge, where she was active in student activity programming. She sits on the board of directors of the Commercial Finance Conference of California (CFCC), and is a moderator/group leader of the All Cities Networking Group. Carrie is also an active member of the Turnaround Management Association, the Association for Corporate Growth, and many other financial networking organizations. Carrie tutors students in English and mathematics, and is a California Notary Public. Triumph Commercial Finance: Kristin Martin has joined the asset-based lending team as vice president, national underwriting manager. She will report to Jim Allin, senior vice president, assetbased lending leader. Martin, who will relocate to Dallas, TX, will manage the underwriting and due diligence process for asset-based lending opportunities across the U.S. She will coordinate the efforts between credit, underwriters and origination to ensure that Triumph delivers value that meets each client’s unique financial service needs. “We are delighted to add Kristin to our team,” said Allin, “She is well respected and well known for her proficiency as an underwriter and as a field examiner. The experience and expertise that she brings to our team will help us to continue to grow our lending capabilities nationwide.” “I’m proud and excited to add Kristin’s leadership to our asset-based lending team, which will allow us to continue to serve the wide ranging
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needs of our clients across the country,” added Dan Karas, TBK Bank, SSB’s EVP and chief lending officer. Most recently Martin served as president for May 1st LLC, performing field examinations for various banks and financial institutions. Prior to starting May 1st LLC, she served as vice president, underwriter at Crestmark Bank and First Growth Capital in Florida after starting her career in asset-based lending with LaSalle Bank in Chicago, IL. US Capital Global: Teresa Grobecker (CA BRE 01908507, NMLS 1286612, CA INS 0F41063) has joined the firm as senior vice president. US Capital Global is a full-service private financial group headquartered in San Francisco. The group manages direct investment funds and provides investment management and capital-raising services, operating with its registered investment bank affiliate, US Capital Global Securities, LLC. Grobecker brings a wealth of financial and real estate expertise to US Capital Global. She has advised on hundreds of transactions for her clients and agents, which have included traditional, probate, bankruptcy, short sales, and foreclosure situations. With a strong interest in real estate, FinTech, investments, and leadership in every form, Grobecker founded Grobecker Holland International, the first escrow company in California to utilize blockchain technology in real estate. Grobecker launched her career in financial services, and has worked extensively with the nonprofit futurist think tank DaVinci Institute. Wells Fargo (NYSE: WFC) Middle Market Banking: Baimba Norman has returned to Atlanta to lead commercial lending operations in its Greater Georgia region, which includes all of the state outside the seven metro Atlanta counties.
Norman began his banking career in Atlanta in 2005 as a financial analyst for the same team that he now directs as regional vice president. After completing the commercial credit-training program in 2008, he moved into the role of relationship manager in Atlanta. In 2015, Norman relocated to St. Louis to serve as a loan team manager for the Emerging Middle Markets Group, which serves companies with annual revenues between $20 million and $50 million. Immediately before his return to Atlanta, Norman served as senior vice president and loan team manager for the St. Louis Middle Market Banking team. “Our commercial operations model is to have local representation backed by specialized resources, whether that’s industry expertise or specific financial capabilities that our bank can provide,” said Brad Marcus, Georgia Division manager for Wells Fargo Middle Marking Banking. “We partner with these resources to deliver comprehensive financial services and solutions to our customers.” Norman now leads Wells Fargo’s regional Middle Market Banking business, which provides credit, treasury management, and deposit products and services to middle-market companies with revenues between $20 million and $500 million-plus. Those companies are an important engine of job creation for the U.S. economy. More than 200,000 mid-market companies — mostly privately held — generate more than $10 trillion in annual revenues. Wells Fargo announced that 26-year banking veteran Marci Davis has been promoted to Central Coast Middle Market Banking regional manager. She succeeds Barbara White Thompson, who became head of the company’s Business Risk Management Group. Davis, a senior vice president, now leads a local team of a dozen commer-
cial banking experts who provide credit, treasury management, and deposit products to middle-market companies with annual revenues of $20 million and higher. The group provides local relationship managers with access to local credit decision-making authority to some of Central Coast’s largest and most-recognizable companies in food, beverage, agriculture, energy, manufacturing, wholesale, retail, distribution, and technology. “Marci understands the diverse needs of Central Coast middle-market companies and has spent more than two decades building trust and helping local businesses succeed,” said Steven Sloan, Northern California Division manager for Wells Fargo Middle Market Banking. “Her expertise, integrity, and diligence will ensure that the momentum we have built for many years serving local businesses continues.” Based at Wells Fargo’s Monterey commercial lending office, Davis brings more than two decades of finance and relationship management experience to her new role. She started her career as a bank examiner with the Federal Deposit Insurance Corporation before working with Bank of America commercial banking in California’s Central Valley. In 2005, Davis accepted a senior relationship manager role at Wells Fargo, holding positions in its Business Banking and Wealth Management Groups. She joined the Central Coast Middle Market Banking regional commercial banking office in 2010 as a portfolio manager. Most recently, Davis served as the office’s loan team manager. White Oak Commercial Finance: White Oak Commercial Finance (WOCF), one of the nation’s leading lenders to the middle market, announced the addition of John Merille as senior vice president and director of originations. “We are pleased to add John and his
numerous talents to White Oak,” said Robert Grbic, president and chief executive officer of WOCF. “John will focus on business development, leveraging his decades of experience providing small and middle-market companies with solutions to promote growth and improve cash flow. We welcome him to the White Oak family as we continue to expand our depth of service to clients.” Merille joins WOCF from Bank of America Merrill Lynch, where he led a team of specialists in business and lower-middle-market banking as a senior relationship manager for nearly five years. Prior to his time with Bank of America Merrill Lynch, Merille held positions at BB&T Corporation, GMAC Commercial Finance, Bank of New York and Bankers Trust. Merille holds a Bachelor degree from Syracuse University and maintains an active role in his community, volunteering as a coach and referee for the American Youth Soccer Organization. White Oak Commercial Finance, LLC is a global financial products and services company providing credit facilities to middle-market companies between $1 -$30 million. WOCF’s solutions include asset-based lending, full-service factoring, invoice discounting, supply chain financing, inventory financing, U.S. import/export financing, trade credit risk management, account receivables management and credit and collections support. WOCF is an affiliate of White Oak Global Advisors, LLC, and its institutional clients. More information can be found at www. whiteoaksf.com. White Oak Global Advisors, LLC is a leading global alternative asset manager specializing in originating and providing financing solutions to facilitate the growth, refinancing and recapitalization of small and medium enterprises. Since its inception in 2007, White Oak Global Advisors, LLC’s disciplined
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investment process aims to deliver riskadjusted investment returns for our investors while establishing long term partnerships with our borrowers. www. whiteoaksf.com IN MEMORIAM Walter Morton Einhorn, 81, of West Deptford, New Jersey, passed away peacefully on June 14, 2018, surrounded by his loving family. Walter was born and raised in Philadelphia, PA. After attending North Catholic High School, Walter graduated with a Bachelor in economics and accounting from Villanova University in 1959. After receiving his CPA certification, he started his career as an account executive with James Talcott Inc. and then was a Senior Vice President at Girard Bank and Mellon Bank in the Commercial Finance field. Walter then became CEO of Meridian Commercial Finance Corporation and retired as President and CEO of Sunrock Capital Corp. He also served as Chairman of the Commercial Finance Association and Chairman of West Deptford Soccer Club. Beloved husband of 58 years to Dolores (nee Baker); loving father of Walter M. (Heidi) Einhorn, Jr., Katrina (Richard) Rothstein and Samuel Gregory (Shannon) Einhorn; devoted grandfather, known as “Pop” to Walter, Jack, Samuel, Mitchell, Raquel, Mia, Beckett and Oliver. Relatives and friends were invited to attend Walter’s Celebration of Life Ceremony on Tuesday, June 19, 2018, 11:00 AM at Eglington Cemetery, Clarksboro, NJ. In lieu of flowers, memorial contributions may be made in Walter’s memory to Children’s Hospital of Philadelphia, PO Box 781352, Philadelphia, PA 19178 or at www.chop.edu/giving. https://mcgfuneral.com/tribute/details/101985/Walter-Einhorn/obituary. html
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WELCOME TO OUR NEW MEMBERS OF THE COMMERCIAL FINANCE ASSOCIATION Axiom Bank, N.A. 258 Southhall Lane, Suite 400 Maitland, FL 32751 www.axiombanking.com Tel: (407) 732-5600 Established in 1962 and headquartered in Central Florida, Axiom Bank, N.A. is a nationally chartered community bank that operates 24 branch locations in Orlando, Tampa, and Jacksonville, Florida markets. An SBA Preferred Lender with the Small Business Administration, Axiom Bank also specializes in commercial loans for both real estate and business purposes, as well as treasury management and other merchant services. Through its Dallas-based division, Allied Affiliated Funding, Axiom offers scalable factoring and asset-based lending solutions to businesses. In addition to these services, Axiom Bank sponsors prepaid debit card programs offered by third-party program managers. As part of its commitment to exceed its customers’ expectations and deliver superior financial solutions, the Bank is constantly working to expand the services and products it provides to its communities. Dan Davis, President and Chief Executive Officer Dan Davis, who will represent Axiom on CFA’s Board of Directors, is Axiom Bank’s president and chief executive officer (CEO), as well as a Director of the Bank. With 26 years of experience in the financial services industry, Davis also is the Bank’s primary point of contact with its external stakeholders, including the Board, shareholder, and regulators. Having served as the Bank’s CFO up to January 2016, Davis assumed the role of President and CEO of Axiom. He is responsible for the overall direction and administration of the Bank’s ongoing activities, including all products
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and services. Under his leadership, the Bank has undertaken a transformative journey of growth and diversification, having earned a National Association charter in 2017. The Board of Directors represent a wealth of knowledge and solid expertise in relevant financial/ business disciplines. New executive team members have enabled the acceleration of the Bank’s asset size. Axiom’s growth has been both organic and through acquisition – within the past 18 months, the Bank successfully launched a number of initiatives, including five new branches, a Tampa Bay Commercial Lending production office, and the acquisition of Allied Affiliated Funding (factoring and ABL). Davis is a graduate of Saint Louis University. He started his career in 1987 with KPMG in St. Louis, MO. Davis has actively participated in various committees in the past and is currently serving and leading committees as a member of Axiom’s Board of Directors.
CHAPTER NEWS Atlanta The Chapter will hold a golf outing at Pinetree Country Club on October 8. Save the date for December 11 for the CFA/TMA Joint Holiday Party at the College Football Hall of Fame in Atlanta. For more information visit community.cfa.com/atlantachapter California The Chapter held a panel, “The Emergence of Tariffs: What Does This All Mean for the Lending Marketplace? A trade discussion or a trade war?” on October 3 at the Luxe Sunset Boulevard Hotel. Panelists as of press time included Glenn Bandy, chief appraiser and president, Jay Cobb & Marley; Reed Mercado, Finance & Bankruptcy, Buchalter Nemer; and Chris Welsh, managing partner, ARG Partners. The panel discussed how lenders and creditors are looking at the recent policy changes and what the effect of current and possible future tariffs have on lenders and borrowers. Other events scheduled for the remainder of 2018 include the Annual Fall Golf Classic at Coyote Hills Golf Course on October 23; a sponsor panel or networking event (TBD) at Center Club – Orange County on November 15; a Women of CFCC event on November 28 (location TBD); and the Holiday Party at the Sheraton Universal on December 12. For more information visit community.cfa.com/californiachapter
Charlotte The Chapter will host a panel on the Charlotte Airport Expansion and how it will affect the Economy on October 30 at The Palm in Charlotte, NC. Brent Cagle, aviation director of the Charlotte Douglas International Airport, will speak.For more information visit community.cfa.com/charlottechapter Europe The Chapter will hold an event on October 10 on Retail Opportunities for ABL at Morgan, Lewis & Bockius UK LLP in London. The event will debate how to navigate the retail landscape for ABL transactions, taking into account special considerations when analyzing retail opportunities and how to overcome obstacles. The expert panel will speak to their experiences of high profile deals in this space. At press time the confirmed speaker was Georgia Quenby, partner, Morgan, Lewis & Bockius UK LLP. A networking reception will follow the panel. For more information visit community.cfa.com/cfaeurope Florida The Chapter held a Topgolf Miami Gardens Event on September 12 from 6:00 -9:00 p.m. at Topgolf in Miami Gardens, FL. For more information visit community.cfa.com/floridachapter Houston On October 4, the Chapter held a Lunch and Learn at Whitley Penn in Houston, TX. The panel discussed the Wayfair Case and the Supreme Court ruling and what the impact is on businesses and their nexus for state tax matters. Speakers included Dallas Packer, CPA, Whitley Penn and Josh Graham, CPA, Whitley Penn. The Chapter will hold a CFA/TMA Networking So-
cial on October 25 at The Grotto Downtown in Houston, TX. On November 14, the Chapter will hold a members-only Lunch and Learn at Weinstein Spira at Three Greenway Plaza in Houston, TX. For more information visit community.cfa.com/houstonchapter MidSouth The Chapter and ACG Tennessee held a Sporting Clays event on September 25 at Nashville Gun Club in Nashville. For more information visit community.cfa.com/midsouthchapter MidWest The Chapter’s Middle Market Capital Symposium II was held October 4 at University Club in Chicago. More than 200 industry professionals joined, and the event culminated with an evening Gala Networking Reception. The Chapter will host a CFA Women in Commercial Finance/TMA NOW Lunch & Panel Discussion at Petterino’s Restaurant in Chicago on October 24. For more information, visit community.cfa.com/midwestchapter Minnesota The Chapter held an event with Minnesota United FC and Minnesota TMAS on September 20 at the Minneapolis Club in Minneapolis, MN. Dr. Bill McGuire, managing director – MNUFC, was the presenter. McGuire explained how MNUFC has turned around soccer’s popularity in Minnesota and how the United’s soon-to-be new home, Allianz Field, is turning around the St. Paul Midway neighborhood. The Chapter will hold a meeting with Economist KC Mathews, CFA executive vice president/chief investment officer at UMB Bank on October 10 at the Minneapolis Club in Minneapolis, MN. The Chapter will host a Lunch and Learn Series, titled “LIBOR in Loan
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Transaction,” and sponsored by Helllmuth & Johnson, PLLC, on November 14. The panel will discuss the future of LIBOR. More than one hundred trillion dollars of financial products use LIBOR as a reference rate. But after 2021 the UK will no longer require banks to submit LIBOR quotes. Avoid disputes/litigation by transitioning from reliance on LIBOR now. Presenters include Karl Johnson and Michael Howard of Hellmuth & Johnson, PLLC. Save the date for February 6 for the Chapter’s Top Golf Social at Top Golf Minneapolis in Brooklyn Center, MN. Attendees will get to enjoy an evening of golf in this brand new, state-of-the art-facility. Space is limited so be sure to register early for this fun evening. For more information, visit community.cfa.com/minnesotachapter New Jersey The Chapter will hold a members-only event on October 24 at the Grammy Experience Museum in Newark, NJ. Those who aren’t currently a New Jersey Chapter member will be charged the $75 chapter-membership dues and will become a 2018 New Jersey Chapter Member with free admission to this event and discount pricing to the remainder of the Chapter’s 2018 events. There will be an open bar, light dinner and private access to “The Grammy Experience”. The Chapter will hold a Panel Event Joint with the NJTMA on November 15 at the Tournament Players Club at Jasna Polana in Princeton, NJ. The Chapter’s holiday party is scheduled for December 13. Venue location is TBD. For more information, visit community.cfa.com/newjerseychapter New York On September 25 the Chapter, along with CFA’s New Jersey Chapter, held a
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cruise around Manhattan on the Hornblower Hybrid. The Chapter’s holiday party will be held November 28 at The Yale Club of New York City. For more information, visit community.cfa.com/newyorkchapter Ohio The Chapter held its Second Annual CFA/TMA Shuffleboard Event at Forest City Shuffleboard Arena & Bar in Cleveland, OH on September 12. For more information, visit www.community.cfa.com/ohiochapter. Philadelphia The Chapter will hold an Educational Event on The Mid-Term Elections and the Economy on October 11 at the offices of Stradley Ronon Stevens & Young LLP, in Philadelphia. The event will be led by guest speakers Pennsylvania Republican Party Chairman Val DiGiorgio and TD Bank Senior Economist, James Marple. The event will be followed by networking, cocktails and hors d’oeuvres. The Chapter’s Annual Joint Holiday Networking party will be held December 5 at The Racquet Club of Philadelphia in Philadelphia. Save the dates for the Chapter’s Day One at the Masters Networking Event on April 11 at Tavern On Broad in Philadelphia and the 24th Annual Golf Outing on May 13. For more information, visit community.cfa.com/philadelphiachapter Southwest The Chapter will hold a panel event titled “Valuation Issues in Corporate Restructurings and Opportunities Presented” on October 17. On November 7, the Chapter will hold its fourth PEGapalooza private equity event. Join mover 300 deal professionals from across the nation for an evening of power networking, wine, whiskey and heavy apps.
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For more information, visit www.cfasw.org. For more information on CFA Chapters, please visit community.cfa.com/ ch/chaptersmain
CALENDAR October 8, 2018 CFA’s Atlanta Chapter - Golf Outing Pinetree Country Club Kennesaw, GA October 10, 2018 CFA’s Europe Chapter Retail Opportunities for ABL Morgan, Lewis & Bockius UK LLP London, U.K. October 10, 2018 CFA’s Minnesota Chapter – Meeting with Economist KC Mathews, CFA executive vice president/chief investment officer at UMB Bank Minneapolis Club Minneapolis, MN October 11, 2018 CFA’s Philadelphia Chapter The Mid-Term Elections and the Economy- Educational Event Stradley Ronon Stevens & Young LLP Philadelphia, PA October 17, 2018 CFA’s Southwest Chapter - Valuations and Opportunities in Corporate Restructurings Holland & Knight Dallas, TX October 23, 2018 CFA’s California Chapter Annual Fall Golf Classic Coyote Hills Golf Course Fullerton, CA October 24, 2018 CFA’s New Jersey Chapter - Grammy Experience Museum event Prudential Center Newark, NJ
October 24, 2018 CFA’s Midwest Chapter – Women in Commercial Finance /TMA NOW Lunch & Panel Discussion Petterino’s Restaurant Chicago, IL
November 6, 2018 CFA’s Idea Exchange - Five Distinct Tracks Two Top Economist Keynote Speakers and A Memorable Luxury Cruise Marriott Marquis San Diego Marina San Diego, CA
October 25, 2018 CFA’s Houston Chapter - Joint Networking Reception with TMA Grotto Downtown Houston, TX
November 7, 2018 CFA’s Southwest Chapter – PEGapalooza 3015 at Trinity Groves Dallas, TX
October 30, 2018 CFA’s Charlotte Chapter Charlotte Airport Expansion and how it will affect our Economy The Palm Charlotte, NC
November 7 - 9, 2018 CFA’s 74th Annual Convention Marriott Marquis San Diego Marina San Diego, CA November 14, 2018 CFA’s Minnesota Chapter – Lunch and Learn Hellmuth & Johnson, PLLC Edina, MN
COLLATERAL CONFIRMED. CONFIDENCE SECURED.
Michael A. Boeheim, CIA, CFE Director
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THE SECURED LENDER OCTOBER 2018 55
the cfa brief
AD INDEX Capital One, N.A.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.capitalone.com. . . . . . . . . . . . . . . . . . . . IBC Equiniti Riskfactor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.equinitiriskfactor.com. . . . . . . . . . . . . Pages 38-39 Freed Maxick ABL Services. . . . . . . . . . . . . . . . . . . . . www.freedmaxick.com. . . . . . . . . . . . . . . . . . Page 55
November 14, 2018 CFA’s Houston Chapter – Lunch and Learn (members-only event) Three Greenway Plaza Houston TX
Hilco Global. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.hilcoglobal.com. . . . . . . . . . . . . . . . . . . . BC Katten Muchin Rosenman LLP. . . . . . . . . . . . . . . . www.kattenlaw.com. . . . . . . . . . . . . . . . . . . . . IFC MB Financial Bank. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.mbfinancial.com/healthcare . . . . . Page 13 HPD Software, LLC. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.hpdsoftware.com. . . . . . . . . . . . . . . . . . Page 7 Santander Commercial Banking. . . . . . . . . . . . . . . www.santanderbank.com. . . . . . . . . . . . . . . Page 37
November 15, 2018 CFA’s California - Orange County Event Sponsor Panel or Networking Event (TBD) Center Club - Orange County Costa Mesa, CA November 15, 2018 CFA’s New Jersey Chapter Panel Event Joint with the NJTMA Tournament Players Club at Jasna Polana Princeton, NJ November 28, 2018 CFA’s California Chapter Women of CFCC Event Location TBD
Wells Fargo Capital Finance. . . . . . . . . . . . . . . . . . . www.wellsfargocapitalfinance.com. . . . Page 2 William Stucky & Associates, Inc.. . . . . . . . . . . . . . www.stuckynet.com. . . . . . . . . . . . . . . . . . . . . Page 1 Utica Leaseco, LLC. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.uticaleaseco.com. . . . . . . . . . . . . . . . . . Page 46
December 12, 2018 CFA’s California - Holiday Party Sheraton Universal Los Angeles, CA December 13, 2018 CFA’s New Jersey Chapter – Holiday Party Stone House at Stirling Ridge Warren, NJ
November 28, 2018 CFA’s New York Chapter Holiday Party The Yale Club of New York City New York, NY
February 6, 2018 CFA’s Minnesota Chapter - Top Golf Social Top Golf Minneapolis Brooklyn Center, MN
November 28-29, 2018 YoPro Leadership Summit Winston & Strawn LLC Chicago, IL
April 11, 2019 CFA’s Philadelphia Chapter – Day One at the Masters Networking Event Tavern On Broad Philadelphia, PA
December 5, 2018 CFA’s Philadelphia Chapter – Holiday Party The Racquet Club of Philadelphia Philadelphia, PA
May 13, 2019 CFA’s Philadelphia Chapter - 24th Annual Golf Outing Venue TBA
December 11, 2018 CFA’s Atlanta Chapter with TMA – Holiday Party College Football Hall of Fame Atlanta, GA
56
DON’T MISS CFA’S ANNUAL CONVENTION IN SAN DIEGO, NOV. 7-9, WWW.CFA.COM
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capital.one/financialinstitutions *As of 3/31/2018. Source: SNL, Regulatory Filings. Subject to credit approval. Additional terms and conditions apply. Products and services offered by Capital One, N.A., Member FDIC. © 2018 Capital One.
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VA L U A T I O N
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ADVISORY