October 2019 by Secured Finance Network

Representing the Asset-Based Financing, Factoring & Supply Chain Finance Industries Worldwide Oct. 19

INTERVIEW

ALSO IN THIS ISSUE

TSL INTERVIEW

BRUCE

DAVID

SPRENGER

GRENDE

SFNET’S IMMEDIATE PAST PRESIDENT P58 THE CHALLENGES TO AND STRATEGIES OF RECALIBRATION OF THE ASSET P52 WHAT HEALTHCARE LENDERS AND INVESTORS CAN LEARN FROM THE PROTON THERAPY EXPERIMENT P56

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FORMER SFNET CHAIRMAN RETIRES FROM FIFTH THIRD AFTER 40 YEARS IN THE INDUSTRY P60 INTERVIEW

ANDREA

BEIRNE

OF KPMG LLP P62 SFNET’S 75TH ANNUAL CONVENTION EXHIBIT GUIDE P65

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Recognizing exceptional contributions to the secured finance industry Wells Fargo is a proud supporter of the Secured Finance Network. We congratulate the many Wells Fargo Capital Finance alumni who are being inducted into the inaugural SFNet Hall of Fame. We commend all of you for your significant contributions to the industry and for your support of our customers.

ÂŠ 2019 Wells Fargo Capital Finance. All rights reserved. Products and services require credit approval. 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-6582021

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Representing the Asset-Based Financing, Factoring & Supply Chain Finance Industries Worldwide

Volume 75, Issue 7

October 19

FEATURES

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What Outsource Healthcare Lenders and Investors Can Learn from the Proton Therapy Experiment

SFNet Hall of Fame Inductees

8 SFNet Hall of Fame Inductees In this issue, we profile the inaugural SFNet Hall of Fame inductees, including their career highlights and contributions to our industry.

58 Interview with David Grende, SFNet’s Immediate Past President

52 The Challenges to and Strategies of Recalibration of the Asset Footprint Across International Platforms With the increasing globalization of markets and operations, the location and ownership of assets — inventory, brands, and other assets — has become an integral component of supply chain management. Calibrating the international asset footprint for a company or its secured lender allows for the maximization of asset values and the identification of areas of risk, but it comes with significant challenges. By Frank Morton and Rafael Klotz

56 What Outsource Healthcare Lenders and Investors Can Learn from the Proton Therapy Experiment A Carl Marks Advisors executive explains the five questions lenders and investors should consider when financing freestanding healthcare facilities. . By Jette Campbell

The Challenges to and Strategies of Recalibration of the Asset Footprint Across International Platforms

David Grende is president and CEO of Siena Lending Group LLC. He served as SFNet’s president for the 2019 fiscal year. David is a specialized lending executive with more than 30 years’ experience building and running asset-based lending businesses, executing debt restructurings, taking on interim management roles, and completing complex asset workouts and recoveries. By Michele Ocejo

60 Interview with Bruce Sprenger: Former SFNet Chairman Retires from Fifth Third after 40 Years in the Industry

Bruce Sprenger retired from his position as SVP group head for Fifth Third Business Capital at the end of June, after 40 years in the industry. At Fifth Third Business Capital, Sprenger was responsible for developing new markets and marketing activities of the ABL group and advising on customer cross-border opportunities. Sprenger is a past Chairman of the Secured Finance Network. By Michele Ocejo

62 Interview with Andrea Beirne, KPMG LLP

DEPARTMENTS 6

Collateral The latest issues affecting the ABL and factoring industries, including company news and personnel announcements.

SFNet’s 75th Annual Convention Exhibit Guide Showcases the exhibitors at SFNet’s Annual Convention, November 13-15 in New York City.

The SFNet Brief 73 82

Among SFNet Members SFNet Chapter News

Advertisers Index

STAFF & OFFICES Michele Ocejo Editor-in-Chief and SFNet Communications Director Eileen Wubbe Senior Editor Aydan Savaser Art Director

Advertising Contact: James Kravitz Business Development Director T: 646-839-6080 jkravitz@sfnet.com

Editorial Ofﬁces 370 Seventh Avenue Suite 1801 New York, NY 10001 (212) 792 -9390 Fax: (212) 564-6053 Email: tsl@sfnet.com Website: www.sfnet.com

The Secured Finance Network 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 asset-based financial services industry (ISSN 0888-255X), 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, SFNet members are complimentary, by Secured Finance Network, 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 Secured Finance Network, 370 Seventh Avenue, New York, NY 10001.

collateral INDUSTRY NEWS

THE INDUSTRY IN BRIEF

Siena Lending Group Launches Siena Healthcare Finance Siena Lending Group, (“Siena”), a leading asset-based lending company, today announced the expansion of its national commercial lending capabilities with the launch of Siena Healthcare Finance. This new division of Siena will provide a broad range of asset-based lending solutions for small to mid-sized healthcare companies and other service providers. Headquartered in Portland, Oregon, Siena Healthcare Finance will seek to provide credit facilities ranging from $1 – $30 million to healthcare companies with revenues between $5 – $250 million, operating in the U.S. and Canada. Like Siena Lending Group, Siena Healthcare Finance will offer clients maximum flexibility with quick response and turnaround times. Target markets will include healthcare facilities, medical products and technology companies, healthcare service providers, and any provider of goods and services to the healthcare sector. Siena has hired Jennifer Sheasgreen to be President of Siena Healthcare Finance. Edward Kauffman will join the division as Managing Director in charge of new business originations. Sheasgreen and Kauffman have worked together since 2008 and have had a successful track record of building healthcare business units from the ground up. These prior startups include Marquette Healthcare Finance, Doral Healthcare Finance and Triumph Healthcare Finance, which was subsequently purchased by CNH Finance, L.P. David Grende, President and CEO of Siena Lending Group, said, “We are excited about building a business in the healthcare space with a team of extremely qualified and well-respected professionals. Healthcare finance is a specialty that we always wanted to be a part of. We now have expertise and leadership with a proven track record, and can build a business

around a sector that represents the largest percentage of GDP spent in the U.S. In addition, the recent acquisition of Siena Capital Finance LLC, Siena’s parent company, by Business Development Corporation of America (BDCA), has helped to propel this strategic initiative.” “Expanding Siena’s industry coverage to include the healthcare sector helps to strengthen Siena’s product capabilities and presents a compelling channel for growth,” said Richard Byrne, CEO of BDCA, an affiliate of Benefit Street Partners LLC, which has over $3 billion of capital committed to the healthcare sector. “We are excited about adding Jennifer, Ed and team to the Siena platform, and look forward to continuing to support Siena’s growth.” Sheasgreen has over 25 years of experience in executive leadership roles spanning all aspects of commercial finance within the healthcare industry. She holds a Bachelor of Science degree in Strategic Management from California State University at Sacramento, and is certified as a Fellow of the Healthcare Financial Management Association with a concentration in Accounting and Finance. In 2017, Sheasgreen was recognized by the Secured Finance Network, formerly the Commercial Finance Association, as one of the top “50 Women in Commercial Finance.” “I have a real passion for start-ups, and I am excited to partner with Dave and his team,” Sheasgreen said. “Siena Lending Group is the perfect fit for our team as we build Siena Healthcare Finance, knowing we’re backed by a great team and a strong capital provider.” Kauffman brings over 20 years of healthcare finance experience to Siena Healthcare Finance. During his career, he has held various business

development positions in healthcare lending at CNH, Triumph and Doral, as well as CIT Group, GE Finance and Heller Financial Services. Ed attended SUNY Brockport and is a member of the Turnaround Management Association, Secured Finance Network, Association for Corporate Growth and Healthcare Financial Management Association. Also joining Siena Healthcare Finance will be Stephen Gaut, as Vice President of Underwriting, and Dan Carroll, as Vice President of Portfolio Management.

BMO Harris Bank Asset-Based Lending Continues Expansion with Senior Hires in Boston and Atlanta BMO Harris Bank’s Asset-Based Lending (ABL) group announced that it has hired Brian Tammaro as managing director and Scott Sundal as director. In these roles, Tammaro and Sundal will lead BMO’s coverage efforts in the Northeast and Southeast regions of the country for prospects, customers, and private equity sponsors that utilize asset-based financing. “Our Asset-Based Lending team continues to expand, and we see an opportunity to grow our platform throughout the Northeast and Southeast regions,” said Mike Scolaro, group head, AssetBased Lending, BMO Harris Bank. “Both Brian and Scott are very well known throughout their coverage areas, and they will bring tremendous expertise and experience to our customers, and to our collective team. We are thrilled to have them on board.” Based in Boston, Tammaro will lead origination efforts for BMO Harris’s ABL group across the Northeast, bringing more than 20 years of lending experience to the team. In his most recent role at another financial services organiza-

DON’T MISS SFNET’S 75TH ANNUAL CONVENTION NOVEMBER 13-15, 2019 TO REGISTER VISIT WWW.SFNET.COM

Gerber Finance Launces West Coast Office Gerber Finance has aunched a West Coast office. Ed Park is relocating from New York to Santa Monica, CA to lead the new office, assisted by Tammy Rouah. Park has been named senior vice president/west coast regional manager. He started his banking career at Comerica Bank in Los Angeles and then spent most of his banking career in New York with Bank Leumi and Flushing Bank before joining Gerber Finance in May. “We were fortunate to find someone of Ed Park’s caliber to join our team and to take on the responsibility of spearheading our growth efforts for our West Coast portfolio,” noted Gerber Finance president Jennifer Palmer. “We have always had ambitious growth plans for our California office, and we believe Ed will make those dreams a reality. We believe that Ed’s expertise coupled with his energy and passion for helping entrepreneurs will benefit both our existing West Coast portfolio as well as our robust pipeline.” Tammy Rouah also joins the West Coast Gerber team. Rouah brings 25 years of commercial banking experience, primarily in ABL and factoring middle-market arena. Prior to joining Gerber Finance, she was director of operations for 17 years with Austin Financial Services. “Tammy’s broad experience within our industry will certainly allow her to provide an array of knowledge to our clients. Her perspective is unique, and her approach is to act like a true advocate for the client, providing even more support than before,” said Palmer.

Santander Bank Adds Industry Veterans to its Asset Based Lending Business Santander Bank announced that Paul Cronin has been selected to lead the Bank’s asset-based lending (“ABL”) business in its Commercial Banking division. Cronin will be responsible for growing Santander’s ABL business, a full-service provider with a highly diversified portfolio and expertise in equipment financing, wholesale trade and financial services. Cronin reports to David Swoyer, Santander Bank’s head of Commercial Banking. Cronin joins Santander from KeyBank, where he most recently served as head of ABL and Commercial Dealer Finance. At KeyBank, Cronin significantly grew its ABL business by expanding debt capital markets penetration, improving client focus, and strengthening underwriting and risk management processes. He also co-led the integration and transition process following the KeyBank and First Niagara merger. Prior to that, Cronin served as head of asset-based lending at First Niagara, and earlier in his career he held senior corporate and commercial banking positions at HSBC and RBS. Cronin earned a master in business studies (M.B.S.) in finance from University College Dublin in Ireland. He resides in Darien, CT. In addition to Cronin, Santander has appointed Arthur Pesavento as senior vice president and business development officer in its ABL group. Pesavento is based in Chicago and reports to Cronin. Before joining Santander, Pesavento was a managing director at Gemino Healthcare Finance where he launched the business development efforts in Chicago and throughout the Midwest. Prior to Gemino, Pesavento was responsible for all aspects of sales and marketing as an SVP and managing director at Sterling National Bank/NewStar Business Credit.

INDUSTRY NEWS

tion, he was responsible for originating ABL transactions throughout the Northeast. Tammaro holds an undergraduate degree in International Business and Finance from Fairfield University. He plans on growing the local team in Boston immediately, looking to hire a vice president-level candidate who will focus on additional business development opportunities throughout the Northeast. Based in Atlanta, Sundal will lead the origination efforts for BMO Harris’s ABL group across the Southeast. He has over 15 years of experience originating ABL transactions throughout the Southeast, with his most recent role focused on Tech Finance, Health Care Finance and Lender Finance structures, as well as traditional ABL structures. In addition, he has had previous roles in portfolio management and underwriting for both leveraged cash flow and ABL financings. BMO is one of the largest providers of asset-based lending in the industry. With over 65 experienced ABL professionals located throughout the United States and Canada, BMO partners with advisors, financial sponsors and companies, helping them to originate, structure and syndicate ABL transactions. BMO Harris Bank provides a broad range of personal banking products and solutions through nearly 600 branches and fee-free access to over 40,000 ATMs across the United States. BMO Harris Bank’s commercial banking team provides a combination of sector expertise, local knowledge and mid-market focus throughout the United States. For more information about BMO Harris Bank, visit the company fact sheet. Accounts are subject to approval. BMO Harris Bank N.A. Member FDIC. BMO Harris Bank is part of BMO Financial Group, a highly diversified financial services provider with total assets of CDN$807 billion (as of January 31, 2019), and more than 45,000 employees.

THE SECURED LENDER OCTOBER 2019 7

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DON’T MISS SFNET’S 75TH ANNUAL CONVENTION NOVEMBER 13-15, 2019 TO REGISTER VISIT WWW.SFNET.COM

letter from

THOUGHTS FROM SFNET AND TSL STAFF

hen we set out to rebrand the Commercial Finance Association over a year ago, we knew we wanted to build on our proud heritage while looking to the future. That timeless adage “remember where you came from” was at the forefront of our minds as we discussed the new brand. There were many positive attributes that we wanted to preserve as we planned to reposition our value proposition to align with the priorities of our diverse network. One way we determined to preserve our rich legacy and celebrate those who brought us to where we are today was to establish the Secured Finance Network Hall of Fame. On the following pages, and at ceremonies at this year’s 75th Annual Convention, we will honor the iconic SFNet Hall of Fame inductees who have played an integral role in shaping our industry and association.

We all owe much to these trailblazers and stalwarts of our noble profession. Although they represent the industry during various periods of time (starting with the 1800s!), they all made critical contributions to secured finance and deserve our acclaim. As I read through the nominations, representing all corners of our community, I was struck by the immense talent, hard work and creativity the inductees have expended not only for the good of their respective businesses, but for the industry and our association as a whole. There were many deserving candidates for this honor who, while not selected this year, I have no doubt will join this elite group before long. The following profiles are a testament to the ingenuity and vision not only of pioneers who are long gone, but those who are leading our industry forward today. The Secured Lender is an integral part of SFNet’s mission to help you see around corners in order to make the most-informed decisions about your business, and this issue is a perfect example of such content. With the increasing globalization of markets and operations, the location and ownership of assets — inventory, brands, and other assets — has become a critical component of supply chain management. Calibrating the international asset footprint for a company or its secured lender allows for the greatest realization of asset values and the identification of areas of risk, but it comes with significant challenges. Turn to page 52 to read The Challenges to and Strategies of Recalibration of the Asset Footprint Across International Platforms by Frank

“On the following pages, and at ceremonies at this year’s 75th Annual Convention, we will honor the iconic SFNet Hall of Fame inductees who have played an integral role in shaping our industry and association.”

Morton and Rafael Klotz of Gordon Brothers. On page 56, a Carl Marks Advisors executive explains the five questions lenders and investors should consider when financing freestanding healthcare facilities in What Outsource Healthcare Lenders and Investors Can Learn from the Proton Therapy Experiment by Jette Campbell. As a partner in KPMG’s Lender Due Diligence group, Andrea Beirne provides due diligence assistance and structured finance consulting services to clients in the financial services industry. On page 62 she discusses the cross-border market, the SFNet Foundation Market Sizing & Impact Study and tips for lenders on ensuring deals go smoothly. David Grende, president and CEO of Siena Lending Group LLC, served as SFNet’s President for the 2019 fiscal year. On page 58 he discusses his tenure and the future of our association. Past SFNet chairman Bruce Sprenger retired from his position as senior vice president/group head for Fifth Third Business Capital at the end of June, after 40 years in the industry. He discusses his memorable career on page 60. I hope to see many of you at the exciting sessions and festivities planned for our 75th Annual Convention in New York City, November 13-15. Remember, you must register to attend! For details, please visit www.sfnet.com.

Warm regards, Richard D. Gumbrecht SFNet CEO

THE SECURED LENDER OCTOBER 2019 9

Hall of Fame Inductees BIOGRAPHY Steve’s undergraduate education began at Luther College in Decorah, Iowa from which he graduated in 1968 with majors in accounting and economics. That was a busy year. He passed the CPA exam, married Lois (now married 51 years), started his first job in a major CPA firm, and soon thereafter was drafted into the U.S. Army. Most of his Army career was spent at West Point Military Academy in administration at the Army hospital. After the Army Steve received an MBA degree from the University of Minnesota in1971. Then came employment with the Deloitte CPA firm in New York City and Minneapolis. From there he entered the asset-based lending industry by joining Republic Acceptance Corporation in 1984. He was there until co-founding Manchester Commercial Finance in 1996. Steve became active in Secured Finance Network (formerly CFA), eventually serving as president and chairman. Steve and Lois enjoy a wonderful family: two sons and daughters-in-law, and five grandchildren. They split time between Minnesota and Florida. Steve has more than he can handle managing his golf game, his public policy blog and website, and as a regular guest/op-ed columnist for several newspapers.

Stephen L. Bakke

Manchester Commercial Finance How did you get your start in the industry? I often think about how lucky I was to find myself in this profession. And that’s what happened – one day I found myself in working for a receivables finance company. I didn’t target this industry. In fact, I had heard very little about it prior to my first job interview. After several years in public accounting, and then in my “early thirties,” I decided to change directions. Fortunately, my boss had a friend who was anxious to fill an opening with some “new blood” and he insisted I talk to Don Moberg, president of Republic Acceptance Corporation. About all I knew was that Republic made loans on accounts receivable, because one of my audit clients had been financed by Republic. I went to the job interview, listened, and was immediately enthusiastic about starting work as soon as possible. And now here I am, age 72, and wondering where all the time went. The travel down this path covering several decades has been fun. I’ve been with “acquired” companies several times, finally with a receivables financing company that I had co-founded, Manchester Commercial Finance. I retired

soon after that acquisition. SFNet, formerly CFA, was part of my professional activities for most of my career. And it all started when my new boss at Republic decided he wanted me to get involved at the national level, and actively represent Republic. What are some of the most memorable moments of your career? My involvement with SFNet provided me knowledge and leadership opportunities I couldn’t have found elsewhere. Two things stick out as my most gratifying association “jobs” prior to my time as an SFNet officer. First, I was asked to take over chairmanship of what we then called the “Small and Independent Finance Company Committee.” This was no committee per se, but rather a group of wonderful entrepreneurial finance companies that was looking for some direction. While I was the Chair, we created true agendas for discussion and relevant educational opportunities for its members. Soon after that experience, the association was going through the painful process of trying to produce our first strategic plan. With the help of many people on the staff and from SFNet membership, I completed the process of pulling a lot of information together, and writing the plan. Then came the great experience serving on the Management Committee and finally

serving as president and chairman. And, I will never forget that as president, I had the difficult honor of welcoming attendees to the convention in San Francisco, very soon after 9/11. What advice would you offer to someone just starting out in the industry? Because of the experiences I’ve had during my active involvement in SFNet, I’m compelled to encourage new industry employees to make sure involvement with SFNet is one of their professional goals. Of course, employers must be willing to back them in that effort. Future SFNet leaders will come from those active in the association at the national level and many also have been active at the Chapter level. I encourage all newcomers to set that as a goal, and don’t forget that all roads to that goal pass through the annual convention. Paraphrasing past Executive Director Len Machlis in his first address to members, way back in the ‘60s: “This convention is our association on parade – its services and members come together to strengthen and create.” Our young employees should set some goals for industry involvement and definitely check out the annual convention.

DON’T MISS SFNET’S 75TH ANNUAL CONVENTION NOVEMBER 13-15, 2019 TO REGISTER VISIT WWW.SFNET.COM

BIOGRAPHY

Francis X. Basile CIT Group

Francis X. Basile was the second of two sons born to Giampaolo and Florence Basile. Giampaolo had immigrated to New York City from a small town in the mountains of Abruzzo; Florence was born in Manhattan, also to southern Italian immigrants. Florence and her sister, Antonetta, married Giampaolo and his brother Piero in a joint ceremony. All settled in the northeast Bronx. Francis arrived June 2,1932. Frank was a regular New York City kid of the Depression Era. He went to elementary school around the corner from the apartment house where he lived, then Olinville Junior High and DeWitt Clinton High School. He liked to hang out with his friends on Bronx Boulevard, play stickball, and sometimes dance on Saturday night. For extra money he worked as a soda jerk at Schrafft’s. He kept his hair slicked back and a pack of cigarettes rolled up in his shirt sleeve. Despite appearances, Frank was a serious student inclined toward practical matters. His father, a hairdresser and talented self-taught painter, was disabled by diabetes when Frank was only a boy and died at 53. Florence pitched in, working as a bookkeeper for a music publishing company, but

family finances were always tight. Frank would play it safe, going on to study accounting at the Wharton School of Business at the University of Pennsylvania. While there, friends set him up on a blind date with Gloria Cuzzocrea, another child of the Bronx with southern Italian roots but from the Belmont neighborhood. A protracted and bumpy courtship led ultimately to marriage, but not before Frank completed three years in the U.S. Navy aboard the salvage ship U.S.S. Deliver which took him from Hawaii to the Arctic Circle and to ports in postwar Korea and Japan. Back on dry land, Frank and Gloria raised their three children in Pelham Manor, NY, where they lived for more than 30 years. They retired to Florida in 1992 and spent summers in Green Hill, RI. Frank died at 72 from pancreatic cancer in 2004. Frank’s career in commercial finance began in 1957 with MeinhardCommercial Corporation. He subsequently worked for Iselin Jefferson Financial Company and Manufacturers Hanover Commercial Corporation where he rose to chairman and CEO in 1984. Shortly thereafter, he was elected to lead the merger of MHCC with CIT’s various factoring units and ultimately became chairman and CEO of the combined entity, CIT Group/ Factoring, the largest factor in the world. He held several offices of the National Commercial Finance Association and in 1990 became chairman of its board. He later served on the Board of Directors of Ames Department Stores and on a special advisory board for FleetBank Investment Services in Sarasota FL. Late in his career, Frank fondly recalled his early days as an account executive working directly with clients, mostly textile manufacturers in New England and, later, in the South. After he had climbed the corporate ladder,

when his children asked him exactly what he did as a senior executive, he explained that he mostly counted the paper clips in his desk drawer. While living in Pelham, Frank coached youth basketball for the town recreation league for nine seasons. In 1985 he won the Human Service Award from the American Jewish Committee and in 1989 received the Distinguished Community Service Award from Brandeis University. He enjoyed golf (“I shoot in the 80s; if it gets any hotter I stay inside.”) and a good cigar. He was an avid reader of American history. A moderate Republican for most of his life, he disaffiliated for several years after the Watergate scandal. With rare exceptions, Frank came home for dinner every night and rarely missed his children’s sports games and piano recitals. He and Gloria were devoted to each other and made an elegant couple. Always mindful of how fleeting life can be, he took an early retirement that allowed the two of them to travel extensively and spend time with their children and grandchildren.

THE SECURED LENDER OCTOBER 2019 11

Hall of Fame Inductees BIOGRAPHY Mr. Bernstein received his A.B. degree from Cornell University in 1965. He received his J.D. degree from Harvard Law School in 1968 and was admitted to the Illinois Bar in that year. He retired from the law firm of Sidley Austin LLP in 2018. He is a member (emeritus) of the National Bankruptcy Conference, a fellow in the American College of Commercial Finance Attorneys and a member of the American College of Bankruptcy. Mr. Bernstein is a former general counsel of Secured Finance Network, formerly Commercial Finance Association and a former chair of both the Chicago Bar Association Commercial Law Committee, and the Illinois State Bar Association Section on Commercial, Banking and Bankruptcy Law. Mr. Bernstein served for many years as a member of Sidley’s Management and Executive Committees, as managing partner of Sidley’s New York office, as chair of Sidley’s New Business Committee, as co-chair of Sidley’s Professional Risk Management Committee and as a member of Sidley’s Office of General Counsel.

H. Bruce Bernstein Sidley Austin LLP

How did you get your start in the industry? My interest in secured finance began as a second-year law student when I took my law school’s very first course in UCC Article 9 (Security Interests in Personal Property). Having greatly enjoyed the course, I requested to work with a banking partner at the Buffalo law firm I clerked with during summer of 1967. The firm’s largest client was a major western New York bank and, consequently, I had the opportunity to work on a number of problems the bank was facing. I enjoyed both the work and people I worked with and, while they invited me to return after graduation, I concluded that I wanted to try to find a firm in a larger financial center. During my interviews in a number of cities, including Chicago, I met Bruce Schimberg, with whom I spent over an hour discussing his bankruptcy and secured finance practice. Bruce was a champion recruiter and convinced me to come to work with him even though I had the misguided idea that I might try tax law as well. I joined Bruce’s firm (Leibman Williams Bennett Baird and Minow) in 1968 (Leibman later merged with Sidley Austin in 1972) and was immediately exposed to a very significant project for Secured Finance Network (at that time it was National Commercial Finance Conference)

involving the enforceability of the “floating lien” on inventory and accounts receivable under the UCC and Bankruptcy Code. That fall I also attended my first annual convention of the then-NCFC at the Waldorf Astoria Hotel in NY where Bruce introduced me to a number of people in the Conference’s leadership. I loved the experience and the rest (50-plus years) is history. What advice would you offer to someone just starting out in the industry? Since I began my career in the law, and not in the finance industry, it would be a bit presumptuous of me to offer advice in this area, but if one is generally interested in finance (how money moves in and out of various types of transactions and structures) try to find a bank, finance company, fund or other similar organization with an excellent reputation for success and longevity, and maybe even more important, for ethics and integrity. It takes a whole career to build an excellent reputation and only one ethical misstep to ruin one. Capable, ethical leadership is critical. Find it and stick with it. What are some of the most memorable moments of your career? Two of my more significant and exciting professional experiences involved representing the three agent banks (Citibank, Bankers Trust and Manufacturers Hanover) that provided the secured financing which in large part funded the first leveraged buyout of R.H. Macy & Co. At the time the deal closed in 1986, it was one of the largest and most complex LBO transactions

ever completed. Second, and equally challenging, was representing all the Japanese banks that had provided trade financing to Chrysler Corporation prior to its government bailout. This matter involved everything from preparing clients for testifying at a U.S. Senate Banking Committee hearing to a skyscraper fire at 350 Park Avenue in New York that almost resulted in the loss of closing documents on the eve of the closing. What role did SFNet play in your career development? SFNet was instrumental in the building of my career. It allowed me to meet and work closely with outstanding people who were leaders in the asset-based lending industry and gave me the opportunity to work on significant projects that helped shape the law which underpins secured finance. I was fortunate to have been able to represent the association in helping shape the Bankruptcy Code, the Uniform Commercial Code and Uniform Fraudulent Transfer Act. I was also able to contribute to the preparation of several amicus curiae briefs supporting a number of issues of material significance to our industry. But most important, SFNet provided me with a fertile environment from which I was able to develop friendships that have lasted decades. To this day. I remain close with people I first met at SFNet events in the early 70s.

DON’T MISS SFNET’S 75TH ANNUAL CONVENTION NOVEMBER 13-15, 2019 TO REGISTER VISIT WWW.SFNET.COM

Our Foundation Donors Deserve the Spotlight The Secured Finance Foundation encourages, facilitates, and supports education, innovation, and charitable works for the betterment of organizations and professionals who deliver and enable secured finance—and for the communities of which they are a part. Your tax-deductible donations support key initiatives: Industry Information: Valuable benchmarking and industry data such as the SFNet Quarterly Confidence Index and our groundbreaking Market Sizing & Impact Study ■ Education: Including reshaping both content and delivery to better serve the needs of members We also sponsor guest speakers at international and local events. ■ NextGen: We celebrate young professionals with our semi-annual SFNet 40 Under 40 Awards. The Secured Finance Foundation’s Scholarship and Diversity Committee has also developed a Guest Lecture Program for colleges and universities ■ Community: The Foundation works with local community groups as well as national organizations such as the Small Business Administration (SBA) to establish new markets and opportunities for our members ■

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Hall of Fame Inductees BIOGRAPHY Gail K. Bernstein was executive vice president, national investment manager for PNC Business Credit, located in Los Angeles, CA. Prior to September 2013, she was the marketing manager of PNC Business Credit-Western Region, a de novo office that she opened in 1998. Before joining PNC, Bernstein was the national sales and marketing manager for Wells Fargo’s ABL unit. She also held the post of senior credit officer and national marketing director for Signal Capital Corporation’s (formerly First City Financial) asset-based unit as well as managing director of Bank of America’s Latin American Private Banking Division, where she managed 80 employees and $4 billion in AUMs. Besides her extensive experience in ABL, her career encompasses a specialization in international lending and investment management. She has traveled extensively in Latin America and is bilingual in English and Spanish. After 20 years with PNC, Bernstein retired on August 30, 2019.

Gail K. Bernstein PNC Business Credit

What advice would you offer to someone just starting out in the industry? Join a local chapter of SFNet, get on a committee and attend the events - that’s how you meet other people. Most chapters have YoPro groups made up of young professionals from many disciplines, so you meet others beyond the ABL world and you can pass business back and forth to one another. Be flexible to move forward in your career and take risks with relocation and other jobs within the organization for career advancement. If you’re told that you are not ready or don’t have enough experience, ask what courses you can take or what other experiences could help you improve to get to that position of readiness. Get to know as many senior people as you can within your organization; don’t be afraid to ask them to lunch. What are some of the most memorable moments of your career? I’m proud of the fact that I was the first woman to travel for a West Coast bank to Latin America; previously one woman had traveled there from the East Coast. I have been honored by a

charity for my humanitarian work. And last year, I was named one of the most influential persons in Los Angeles by the Los Angeles Business Journal. Travelling South America for work allowed me to add on time to see spectacular sites such as Machu Picchu and Iguazu Falls. I appreciate the ability to have worked with the local and national boards of SFNet; I met great people. What role did SFNet play in your career development? I think organizations like SFNet (formerly Commercial Finance Association) help you to develop leadership skills. When you are asked for your opinion, or to be on a committee, I think you should volunteer your time and energy. I was involved in the local California chapter. On the national level, I was the chair of SFNet Education Committee last year and again this year and co-chair prior to that, primarily focused on the educational content and in bringing in more online programs. I’ve been on the Executive Committee of the National Board, and President of the local California chapter for two years, chairwoman for two years, and remain on the local chapter Board now and co-chair the women’s committee. I was a speaker at SFNet YoPro Leadership Summit in 2018, and spoke again at this year’s Summit, held on August 28-29 in Chicago. I’ve

been an instructor for a SFNet class in Spanish in Colombia as they were hired by the World Bank, and I’m about to take on another project with the World Bank post-retirement, with the goal of establishing asset-based lending in Mexico. How did you get your start in the industry? I started my career in international banking and then moved over to assetbased lending. I moved back into the banking world and then into wealth management for two years. I travelled to Latin America when I was 26 and moved to Mexico when I was 28, and became a top performer there as well. I was not involved in asset-based lending before I joined First City Financial (acquired by Signal Capital), but assetbased lending found me, when the startup subsidiary needed someone who could interface with the bank who owned them and had credibility with the credit committee. I joined them with no ABL experience, but I had the credit experience that they needed. Being open to new areas is always a plus — you’ll learn, and then you’ll have more to offer in the future.

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Today’s a special day for you. And because of you. _

PNC celebrates and honors Gail Bernstein, former executive vice president and national investment manager of PNC Business Credit, for her induction into the Secured Finance Network’s inaugural Hall of Fame as a Lifetime Achievement Award winner. Your professional achievements and humanitarian work prove that the steps we take each day leave a lasting impression.

CIB BC PDF 0919-0128-1363802

Hall of Fame Inductees BIOGRAPHY

Gerald Blum

Trefoil Capital and Fidelcor Gerald Blum learned about fraud the hard way: By experience. He started his long career as an accountant, but quickly moved into the asset-based lending business. After a stint in the U.S. Air Force in World War II, he enrolled in New York University and graduated cum laude as an accountant in 1949. He joined a CPA firm, Klein & Ziegler in 1950, where he worked for three years while attending NYU at night studying for his MBA in finance. After completing his MBA, he joined Jones & Co., an asset-based lender, as an auditor. He left after two years, a pattern set through most of his career because, he said, he kept getting offers from other lenders. He left Jones to join Lexington Financial, also as an auditor. Two years later he went with Jewelers Acceptance Corp. as an account executive and auditor. This was followed by six years, a record stay up to that point, as an account executive at Standard Financial Corp., which had purchased Jewelers Acceptance. In 1961, he went with Meinhard Commercial, at the time a unit of CIT, where he started an asset-based lending operation.

Two years later, in 1963, he moved again, this time to become executive vice president at Amsterdam Overseas, a U.S. asset-based lender owned by the Rothschild banking family of Great Britain. He stayed with Amsterdam Overseas until 1970 when it was sold to Aetna Financial. At the time, there was no pension program at Amsterdam Overseas but in connection with the sale, pension provisions were installed for Amsterdam’s principal officers. “I still get a $572 check every month from that 1970 pension,” Blum said. His career really took off in 1970 when he was engaged to start an asset-based lending unit for Fidelity Bank. This venture proved very profitable for the bank. Blum was named president of Fidelcor Business Corp., the bank’s ABL unit, largely because of his ability to adjust the process to the client’s needs. For example, Fidelcor found a way to finance Larry C. Flynt, publisher of Hustler magazine, who was paralyzed in 1978 by a gunshot wound from a white supremacist. Flynt was not exactly a dream client. Most lenders wouldn’t touch him both because the product was highly offensive and it was tough to finance magazine sales because buyers had the right to return for full credit any unsold magazines. Nevertheless, Blum saw the prospect of a profitable lending business, and by studying the pattern of returns over a about six years, was able to come up with a formula for advances. “Essentially what we did,” Blum said, “was advance 80 percent on 30 percent of the sales and it worked. However, when the bank got wind of the fact that we were financing a pornographic magazine, the bank’s board held a meeting to review the relationship.” Members of the board, according to Blum, were old-line Philadelphians whose noses were mostly planted high

in the air. They figured it just wasn’t fitting for the bank to be involved with such a trashy magazine. “But when they saw the figures and the amount of money we were making, they decided to overlook the product and agreed to continue the relationship.” Currently, many banks, accountants and lawyers are vying for Larry Flynt’s business. Blum presided over Fidelcor for 17 years until he retired in 1989.

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BIOGRAPHY Bill Davis’ career in asset-based lending spanned 39 years with experience in all aspects of credit, underwriting, business development, workouts and senior leadership. Bill served as president of Congress Financial Corporation, a leading bank-owned ABL lender in the United States, Britain and Canada for 12 years. Congress was acquired by First Union/Wachovia Bank and he was named managing director and head of assetbased finance and executive vice president within the investment bank. During his career, Bill has been a director and executive board member of the Commercial Finance Association, a director of the Turnaround Management Association and frequent speaker on asset-based lending, bank commercial lending, turnaround financing and restructuring as well as various managerial topics. Bill and his wife of 48 years, Linda, maintain homes in Palm Beach Gardens, FL and Ocean City, NJ. They enjoy traveling and spending time with their three grandchildren and family. Bill and Linda work with numerous dog and other animal rescues along with other charitable pursuits. Linda has been a volunteer for Hospice of Palm Beach for the past 10 years. Bill spends the majority of his time as a professional musician.

William R. Davis

Congress Financial Corporation How did you get your start in the industry? While serving in the United States Air Force I began to take business courses. Upon my discharge, I used the GI Bill to complete my accounting education. I joined First Pennsylvania Bank in Philadelphia as a field examiner in the accounts receivable department. Prior to entering the field, I was seriously considering a return to the military. After some vigorous training with individuals that became strong mentors I was committed to the business. I was using my accounting knowledge, traveling and seeing businesses and various industries with different challenges every few weeks. Of course, public accounting offered much the same advantages, but at higher compensation. I thought hard about making a change and discussed it with two people I respected: The late great friend and mentor, Ted Kompa, and Leo Yarfitz. Both told me I had a “nose” for the industry, a strong work ethic and that, coupled with my personality, I could go far. They then promoted me to account executive and examination manager. Fortunately they were right and I

experienced a very rewarding career working with many talented people and generally great customers. What advice would you offer to someone just starting out in the industry? Throughout my years in the industry I have been asked this question many times and of course there are no simple answers to this question. Over the years, there are a few suggestions that seem to endure regardless of changes in the industry, economy or the world around us. ◗ Never compromise your honesty to make a point or win a deal.

industry is relatively small; you will have to work with, others again. This is advice for life not just the business! ◗ No matter how well you perform, keep your ego in check! Think team first! ◗ If possible, don’t change employers too frequently. ◗ Be a mentor! ◗ The industry is very rewarding but can be stressful at times. Work toward a healthy life/work balance.

◗ Never be reluctant to ask questions. Be a sponge! Never stop learning! ◗ Understand, and buy into your institution’s credit appetite and risk tolerance to avoid wasting time. ◗ Expand your contacts and referral sources. Work with SFNet contacts. ◗ Work to become well rounded and someone that can fill many needs. ◗ Respect others in your organization at all times. This also applies to contacts outside your firm. The ABL

THE SECURED LENDER OCTOBER 2019 17

Hall of Fame Inductees BIOGRAPHY I began my career in 1984 with Foothill Capital Corporation and retired in 2017 from Wells Fargo & Company at the end of July 2017 having never changed organizations, although the landscape changed around me via an acquisition and a merger. I started in 1984 as a Business Development Officer and assumed my first Management Job and Senior Leadership role in 1989 and retired having overseeing nearly all of the various business unit’s overtime within Wells Fargo Capital Finance. Fortunately, I had a great mentor in Peter Schwab who took an interest in me and gave me the encouragement and support to build our business and great teams. The result, between 1984 to 2017 the company grew organically, brought on new products and made acquisitions such that by the time I retired assets had grown 200 times from when I joined; it was team effort. I am proud of the financial and other meaningful achievements that I orchestrated for the company, but am equally proud to have been an advocate for all Team Members and diversity of our team. Throughout my career I always had an open door to any Team Member and was a mentor to many at all levels of the organization.

Scott Diehl

Wells Fargo Capital Finance What advice would you offer to someone just starting out in the industry? ◗ Most of all a pre-existing interest in business, how it works and how companies fuel our economy; ◗ Listen and learn – never pass up time with an experienced person in the business; ◗ Take any chance to observe how lending is done; ◗ Be intuitive and don’t over think; ◗ Never pass up spending time with someone who is more senior in the business, but more importantly share your insights with people who are newer to the business; ◗ This business is all about making prudent lending decisions, but more important about how you can make a loan work – not how to kill it. ◗ But mostly be real and keep learning and evolving over your whole career. Anything is possible! ◗ And finally - Remember…you have Collateral. What are some of the most memorable moments of your career? ◗ I had a great mentor, Peter Schwab, who took an interest in me even

But, more importantly, I believed that I treated every Team Member in the company, regardless of their position or level in the organization, as an equal who was doing their part to make the business unit and Wells Fargo successful. The source of my highest gratification are my relationships with so many Team Members within and beyond the groups I managed, who made me realize the positive effect I had on their experience and their positive experience upon me.

before the word “mentoring” wasn’t fashionable; ◗ The transition over time of the Foothill/WFCF business and the amalgamation of Congress, First Union ABL businesses and Century Business Credit, Castle Pines amongst others which became 200 times larger from when I joined Foothill; ◗ The ability to be creative; ◗ But most of all, the great efforts of the teams we assembled to build the business over time.

stayed in touch and eventually went to work at Foothill – my only job post College.

What role did SFNet play in your career development? It was a great way to learn and feel like there was something more to the industry. I always looked forward to the Conferences. How did you get your start in the industry? I can’t lie, it was the University of Nepotism. I met John Nickoll, cofounder of The Foothill Group, and a Brown University Alum and Trustee of the University as I was graduating from Brown. We played some tennis

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BIOGRAPHY Paul Goldstein was born in the Boston suburbs in 1938 and became a dyed-in-the wool Red Sox, Celtics and Bruins fan (of which he still is today) – while sharing them with the Atlanta teams and the University of Georgia. Upon graduation from high school, Goldstein attended the University of Georgia, majoring in accounting, which would provide his business acumen. He accepted a job with Arthur Andersen & Co. In 1960 and, from that point until 1978, worked in the accounting field as an accountant, controller, financial officer and CFO. In 1964, Goldstein had the good fortune to marry Ellen, (who still puts up with him after 54 years). They have two wonderful daughters, Robyn and Amy, who married two great guys and have had four bright and admirable children between them.

Paul Goldstein

Allied Financial Corp. How did you get your start in the industry? It was 1978. I was 40 years old, married with two children, and working for an oil company as a controller, traveling between Atlanta and Texas and earning $35,000. I told my wife if I was ever going to have my own business, that now was probably my last chance and that I felt I needed to take the risk. I resigned from the oil company and gave a 60-day notice and, while flying back from Texas one night, I sat next to the president of a small factor, who did small deals and gave me the idea to create Presidential Financial Corporation. I had no money but managed to borrow $500,000 from an Atlanta resident in exchange for 49% of Presidential. With the $500,000 I managed to obtain a $3.5 million credit line from ITT (since has exited the industry) with the understanding that I would give credit lines from $25,000 to $150,000 and I was off and running. I called on 15 banks every day until I had visited everyone in Atlanta… and then did it again… and then again and through those calls I was able to build a referral base that with myself and a secretary built Presidential.

Competition was keen, especially for the new kid on the block, but despite having a stuttering ailment, I was determined to make Presidential a success, and to that end I succeeded. I hired people and opened my first branch in Charlotte three years later and from there hired more and more competent people which allowed me to open offices in Tampa, Orlando, South Florida, Nashville, Baltimore, New Jersey, Boston and Chicago. Hiring competent dedicated people and paying them excellent salaries and expecting them to work conscientiously and with diligence, allowed me to build and grow. Growth most certainly came with problems and while one never forgets his first losses, my training as an accountant encouraged me to build high reserves that fortunately enabled Presidential to grow in a prudent and profitable manner. I would be more than remiss if I didn’t make a note of a superb hire in 1995 – that being my son-in-law, Steven Gold – who worked every bit as hard as I did and enabled Presidential to grow into one of the largest independently-owned commercial finance companies east of the Mississippi. Of note is that my 49% partner remained passive from the beginning and in 2002, I sold my 51% interest – without a noncompete – to a corpora-

tion controlled by my 49% partner. In 2003, Steven Gold formed Allied Financial Corporation and I joined the Company as Chairman. From 2003 until the present, I have had the pleasure to work with Steven to assist building Allied into its present position – and look forward to continuing to assist the Company and finance profession in any way possible.

THE SECURED LENDER OCTOBER 2019 19

Hall of Fame Inductees BIOGRAPHY Mr. Helfat specializes in the representation of foreign and domestic banks, commercial finance companies, sponsors and other specialty lenders in the restructuring of secured loan transactions, including workouts, forbearance and restructuring agreements, Chapter 11 Debtor-in-Possession and “Exit” financing facilities and use of cash collateral. Mr. Helfat has also had extensive experience enforcing and defending the rights of financial institutions in both state and federal court litigations and represents various chief restructuring officers in Chapter 11 cases. Mr. Helfat graduated from American University, received his law degree from the University of Louisville School of Law and a Master of Laws (Corporation Law) from New York University. Mr. Helfat is Co-General Counsel to the Secured Finance Network and co-authors a column in The Secured Lender magazine relating to current legislative and judicial developments in asset-based lending. He has also represented the SFNet in the filing of various amicus briefs before the United States Supreme Court and other appellate courts relating to issues affecting secured lenders.

Jonathan N. Helfat Otterbourg P.C.

What advice would you offer to someone just starting out in our industry? ◗ Develop short and long term goals for yourself, realizing that these goals will change over time. ◗ Work within your organization to find a mentor who will help you advance your career. ◗ Network with your industry peers as often as possible as networking always leads to opportunities. ◗ Try to be the person in your organization who knows the most about the transaction or project you are assigned. This will lead to positive recognition from your manager. ◗ Be impatient with your career goals (albeit in a sophisticated and respectful manner) when talking to your senior management. Modesty and waiting to be recognized, while admirable qualities, may make for a slower career path. What are some of our most memorable moments of your career? While becoming a shareholder in my law firm, achieving industry recognition, seeing the lawyers I mentored succeed and being recognized by our clients for various legal successes are certainly among my most memorable moments, I would like to share a SFNet (formerly Commercial Finance Asso-

Mr. Helfat is also a Fellow and Past Regent of the American College of Commercial Finance Lawyers, was previously a member of the Bankruptcy Judge, Merit Selection Panel for the United States District Court, Eastern District of New York, and has been recognized as a “Super Lawyer” and “Best Lawyer”.

ciation) “memorable moment” that reflects upon the benefits of having a mentor in your organization. My partner and mentor was Alan Weiskopf. One day Alan came into my office and advised me that it was time for me to get involved in SFNet - an organization that I had heard about, of course, but at the time had never participated in. Alan took me to one of the annual conventions and introduced me to many of the members, whose names I had overheard in the office but never met. He then insisted I meet two of his closest friends, Len Machlis, the then Executive Director of SFNet, and Richard Kohn. When we returned from the convention, Alan pushed me to keep up these contacts, which I did, and which lead eventually to Richard and I becoming Co-General Counsel to Secured Finance Network. What role did SFNet play in your career development? As Co-General Counsel to the Secured Finance Network, I have been able to be work with “the best and the brightest” leaders in our industry on significant issues that affect our members. Who thought a boy from Queens, NY would have the opportunity to co-author briefs to the United States Supreme Court and propose legislation behalf of SFNet?

How did you get your start in the industry? I have been lucky enough to spend my entire legal career at the same law firm. When I started my career at Otterbourg, I initially worked for the late Conrad (“Connie”) B. Duberstein, who eventually left Otterbourg to become the Chief Judge of the United States Bankruptcy Court for the Eastern District of New York. While working with Connie, I represented unsecured creditors committees -- I had no exposure to representing secured lenders. One day I was introduced to a new client that my partner Alan Weiskopf had developed, Congress Financial Corporation, and its then-president, Bob Miller. One of the Congress’ loans was in distress and Alan asked me to help out. I immediately saw an opportunity and treated this assignment as if it was my only matter. I worked extremely hard on trying to find solutions for the client and constantly involved the client in the process. I honestly don’t remember the result, but the client appreciated being consulted every step of the way, and that I was trying to do all that could be done to achieve the best recovery. This led to many other matters from Congress Financial, as well as being referred matters from other secured lenders.

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Hall of Fame Inductees BIOGRAPHY Jack Hoekstra was executive vice president for Capital One Leveraged Finance (formerly North Fork Business Capital) when he retired in 2008. He has 40 years of management, sales and marketing experience in the financial services industry. In July 2004 Jack teamed up with a small group of senior executives to start up a national asset-based lending business for North Fork Bank that was eventually sold to Capital One. Prior to this venture, Jack spent 14 years with Transamerica Business Capital as executive vice president/national marketing director responsible for national sales and marketing activities. He began his career at General Electric Credit Corporation spending ten years learning the business and managing a regional office. He also held management positions at IIT and Bank America Commercial Finance and was senior vice president/department head for Mellon Financial Services. Jack is a past chairman of Secured Finance Network (formerly CFA) and was founding president for the Midwest Chapter in Chicago. He currently serves on two not-for-profit boards: A Residential Services for Adults with Disabilities and Developmental Needs and an Urban Chicago Emergency and Special Needs for Under Privileged People agency.

Jack Hoekstra

Capital One Leveraged Finance How did you get your start in the industry? The opportunity to get involved in our industry came out of a friendship. I had enlisted in the Army Reserves just prior to getting married in 1965. Over time I developed a friendship with one of the Reserves who worked for G.E. Credit and he suggested that I apply for a position in his branch office. I followed through on his suggestion and ended up staying for 10 years. With their intensive training programs, I learned everything from effective listening to effective presentation to financial statement analysis to auditing skills. They also had a very strong training program to assist in developing quality managers and it was staffed by their own people. The training sessions ran from one-to-two weeks and were held at out-of-the-way locations where there was basically nothing else to do but study. I learned basic credit and collection skills. Essentially, how to lend money and how to get it back. Then we were trained in sales, marketing and management, how to generate new business, grow a portfolio and manage and retain top quality people. After five years, I became a manager.

What role did SFNet play in your career development? Our industry and the Secured Finance Network (formerly CFA) had a very positive influence on my life and career development. I benefited from a business and educational perspective that I would have never gotten in a classroom. Attending my first annual SFNet convention in 1984, my wife and I were young and total “rookies” at understanding what being a part of the Association could effectively mean for us. On our second day there a couple from New York we had never met before were kind enough to offer us the opportunity to join them and another couple for lunch. Well, thanks to Larry and Karen Marsiello, two naïve people from the Midwest felt a lot more comfortable and welcome to this large New York national association. At the Convention’s closing dinner, I told then-executive director Len Machlis that I wanted to make a personal commitment to someday becoming actively involved in a meaningful way for the Association. Six years later, I had the opportunity to establish the Midwest Chapter and through the years it has grown to become one of the larger Chapters. The early experiences that I gained from my involvement in the Chapter were extensive. They provided an

outstanding networking opportunity and I built relationships with other professionals who shared common goals, interests and objectives. It ultimately developed into countless new business opportunities and club transactions, in buying and selling syndicated deals. It also led to establishing long-term relationships with a variety of service providers who also looked to work together with us on new business opportunities. The Chapters and, more importantly, the individuals who make up those Chapters, have been and always will be this Network’s greatest asset.

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BIOGRAPHY Charlie is a retired financial executive with more than 50 years of leadership in the assetbased financial services industry. His experience includes serving as president and CEO of a publicly traded specialty finance company and as ABL division president at several major commercial banks and independent finance companies. Charlie has held various positions of responsibility covering all aspects of business development, underwriting, portfolio management and operations. During his career, he had extensive restructuring experience and has financed all types of manufacturing, distribution, transportation, and service companies. A 1968 graduate of Georgetown University earning a Bachelor of Arts in Economics, Charlie also earned an MBA in Finance at the University of Hartford in 1972. He is a Past Director, Executive and Management Committee Member, President (2000), and Chairman (2001) of the Secured Finance Network (formerly Commercial Finance Association). Charlie has published articles on various topics related to factoring, asset-based and cash flow lending. He has testified before Congress on matters related to Intellectual Property as Collateral. He currently serves as Chairman of the Secured Finance Foundation (formerly CFA Education Foundation) and a director of Axiom Bank, (Maitland, FL) and Magnolia Financial, Inc. (Spartanburg, FL). Charlie, Jane (friend, lover, and wife of 47 years), and Midnight (Lab mix) live in Fort Myers, Florida.

Charles G. Johnson

Secured Finance Foundation What advice would you offer to someone just starting out in the industry? Be patient. Spend time learning the basics of the entry level positions of each major function: operations, field exam, account management, underwriting, and business development. Find a mentor early on…someone to whom you can ask all the questions. Then, if secured lending is still as interesting and exciting as you thought it would be, start working on a career path. Develop goals and a timeline that will serve as your guide and provide a sense of purpose and motivation. What are some of the most memorable moments of your career? And, How did you get your start in the industry? Here are a couple. First was when I was just six months out of college, the very first day of my ABL/factoring career. I had just finished Connecticut Bank and Trust’s training program and was coming to the realization that a career in traditional commercial banking might be less exciting than I had hoped. That’s when I met Richard Mount who managed CBT’s

Charlie’s nominator described him as “a role model for all that is good in our industry. If anyone deserves recognition for his service to our industry and SFNet, it is Charlie Johnson.”

Accounts Receivable Financing Department. He took me out of the office for a visit to one of the bank’s AR financing customers. It turned out to be what we now refer to as a field exam. I thought “How interesting; I get to really look into this guy’s business and see how it works.” Being the inquisitive type, a job that offered lots of opportunity to learn about many different businesses seemed much more interesting. After that I had my sense of purpose and my career path started to become clear. Another moment was in November 1979 when I attended my first Annual Convention of SFNet (at that time National Commercial Finance Association) in Dallas Texas. That’s when I met a whole bunch of very interesting people, including Len Machlis, Bruce Jones, and many of our past presidents, the leaders of our industry at the time who all demonstrated commitment to the continuing development of ABL and factoring as a true profession.

during trade association meetings and events have allowed me to discuss issues and share solutions with other ABL professionals facing the very same problems and successes at each stage of my career journey.

What role did SFNet play in your career development? SFNet has always provided the opportunity for personal networking with peers in other organizations. Over the years I have found this to be an invaluable resource. The friendships made

THE SECURED LENDER OCTOBER 2019 23

Hall of Fame Inductees BIOGRAPHY Richard Kohn is a co-founder of Goldberg Kohn and a Principal in its Commercial Finance Group, where he specializes in cross-border and other financing transactions. He has served as Co-General Counsel of the CFA/SFNet since 2001. He has been named by Chambers as a leading lawyer in the United States in Banking & Finance and is a Fellow of the American College of Commercial Finance Lawyers. Richard has represented CFA/SFNet at the United Nations Commission on International Trade Law (UNCITRAL) for almost 20 years, and has also served as a consultant to the United Nations in connection with UNCITRAL Legislative Guide on Secured Transactions and as a member of the UNCITRAL Expert Group on various projects. He has also participated in initiatives to promote secured credit in other countries, including the People’s Republic of China and Mexico. Richard is a Lecturer in Law in Cross-Border Lending at The University of Chicago Law School, and writes and speaks frequently on commercial finance topics. He is also a member of the Board of Trustees of the Brain Research Foundation, which funds cutting-edge neuroscience research, and previously served as Chairman of the Board of Chicago Shakespeare Repertory Theater and President of Anshe Emet Synagogue.

Richard M. Kohn Goldberg Kohn Ltd

What advice would you offer to someone just starting out in the industry? Building personal relationships is a key to success in the commercial finance industry, and there is no better way to develop those relationships than by participating actively in SFNet at the national and chapter levels. What are some of the most memorable moments of your career? I’ll never forget the moment I first represented SFNet at a meeting of the United Nations Commission on International Trade Law in Vienna. It was thrilling.

Richard received his B.A., with distinction, in 1966, and his J.D., cum laude, in 1969, both from The University of Michigan. He lives in Chicago with his wife, Joan, and enjoys spending time with his children and grandchildren.

business relationships and friendships through SFNet. How did you get your start in the industry? Although I did not follow my dad into the finance business, I was always interested in commercial finance, and when I graduated from law school, I joined a small Chicago firm that specialized in commercial finance. In 1976, I formed Goldberg Kohn, where I specialized in commercial finance.

What role did SFNet play in your career development? SFNet has played a central role in my career development. I grew up with SFNet, given that my father, LeRoy Kohn, ran a commercial finance company and was a past Chairman of SFNet. I became actively involved in SFNet right out of law school, began representing SFNet at UNCITRAL in 2000, and became Co-General Counsel of SFNet in 2001. Most importantly, I have formed many of my closest

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Richard M. Kohn The attorneys and staff of Goldberg Kohn Ltd. would like to congratulate our founder and colleague Richard Kohn on being inducted into the SFNet Hall of Fame.

Hall of Fame Inductees BIOGRAPHY Scott Mitchell holds decades of experience in lending and turnaround management with expertise in many forms of debt including asset-based lending, specialty finance, high leverage, subordinated, and debtor-in-possession. His experience ranges across a wide variety of industries and collateral types. He has been a managing director of RedRidge Diligence Services since inception. His deep knowledge of lending allows efficient communication of alternative options if a proposed or existing structure is no longer viable. Prior to his time at RedRidge, Mitchell was an audit manager at FINOVA, managing a due diligence staff in a liquidation of over $14 billion in assets over six years. During his time at Fremont Financial, he ran both the Audit Group and the Management Development Program. He has also served as a litigation support expert in several bankruptcy cases.

Scott Mitchell, CFE, CIRA

Mitchell studied business and history at the University of Cincinnati. He is a Certified Fraud Examiner (CFE) and a Certified Insolvency and Restructuring Advisor (CIRA). His many cases have made interesting material for his continued training leadership with the Secured Finance Network (SFNet), (formerly Commercial Finance Association), several commercial banks, and RedRidge Diligence Services. In 2016, Scott received the Lifetime Achievement Award for his long-standing tenure as an SFNet instructor and dedicated service to the industry.

What are some of the most memorable moments of your career? Joining the turnaround of an assetbased lending subsidiary of a NYSE insurance company, and on my second day on the new job, I was informed that our line of credit source had terminated our $100 million line. A couple of months later we had to recognize the extent of the write-offs that would be necessary from the legacy operations. The line of credit was successfully replaced and over time, the newly formed company profitability made up for the legacy write-offs. Part of rebuilding the profitability was generating a securitization program for funding asset-based loans, way back in the early ’90s. Being a part of rebuilding the structure of a faltering asset-based lender was a valuable learning experience to be used later in helping clients with turnaround issues. Being a part of the liquidation of $14 billion in corporate and commercial secured loans, over a period of six years was also invaluable. I got to see the strategies put in place, by senior management, to enhance the value of an orderly liquidation, inside the largest bankruptcy in history when

filed in 2001. This six-year assignment was packed with many new projects, many driven by both the bankruptcy and concerns for Sarbanes-Oxley controls. In this role, I had the pleasure of working in some unusual secured lending fields such as communications finance, aircraft leasing, resort finance, and franchise finance. Working on the collateral and financial monitoring of a candy manufacturing operation in Juarez, Mexico for six months. This assignment was challenging in almost every respect. I had to get a work permit to work every day in Mexico, while commuting across the border from El Paso. Then, once in Mexico, the language and cultural divide were a challenge, not to mention the dollar and peso conversion issues. Then, learning the employee termination rules in Mexico and the associated cost, as the lender decided to close the operations and liquidate the assets. Worked on a challenging captive auto finance company back in the early ‘80s, along with a long list of other asset-based field examiners. While fraud indicators were noted by several of those asset-based field examiners, the money center banks

RedRidge Diligence Services

funding the transaction at that point were paid out by a small savings and loan in a distant city. The CEO of the company disappeared with untold millions nine months after the money center banks were paid out. Then, in 2018, after a chance meeting with another asset-based field examiner who had worked on this same deal back in the ‘80s, I was told the former CEO and fugitive from US law had been caught by ICE, while flying from Australia to Canada, with a stopover at LAX. I verified the capture and back-story on the internet. Prior to 2018, I thought this perpetrator had indeed accomplished the perfect crime. Well, not quite, and he will spend his remaining days in prison. More important than anything else, I had the great fortune to work for and with some great leaders. In that process, I worked for both men and women that I respected and they in turn empowered me to excel. There is no greater memorable moment than working for great leaders.

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BIOGRAPHY Deborah J. Monosson, president & CEO, joined Boston Financial & Equity Corporation in 1989 as a sales associate. She has held her current position since 2001. Monosson started her early leadership training as a camp counselor during her college summers teaching swimming, sailing and tennis. Her first job after graduating was as a portfolio clerk for a mutual fund. She then got licensed as a Commodities future trader for E.F. Hutton. Moving from commodities to stocks, she was an assistant in the Syndicate Department at Dean Witter Reynolds. She has a B.S. degree in business from Skidmore College and an MBA from Boston University. She is a Past Chairperson of the SFNet, (formerly Commercial Finance Association) and past Vice Chairwoman of the Equipment Leasing and Finance Foundation. She also served as a board member of the ELFA, the Association for Corporate Growth, Boston and the MIT Enterprise Forum of Cambridge.

Deborah J. Monosson Boston Financial & Equity Corporation

How did you get your start in the industry? My dad was brave enough to hire me. I had been fired from three jobs, I had just finished graduate school and wanted to try my hand at sales. At the time, he happened to have a salesperson leaving. I thought, why not? I knew nothing of the business, but learned to love the sell, the networking, the challenge and the rewards. What advice would you offer to someone just starting out in the industry? I don’t have industry-specific advice. Challenge yourself, get outside your comfort zone. Believe it or not, I am a naturally shy person. I actually chose sales because it was so opposite of my natural self. It was excruciatingly difficult for me at the onset. Eventually it became second nature to me. I also worked in primarily male-dominated industries. In the ‘80s I worked in the stock brokerage industry where I really had to hold my own. There was a lot of sexism, and what would now be behavior that would fall in to the Me Too movement. From a family of four girls, I was taught not to put up with

that…and I didn’t. You must stand up for what you believe in, as uncomfortable as that may be. What are some of the most memorable moments of your career? I was schooled the old-fashioned way: You learn as you go. I had previously only been sourcing lease deals, documents were boiler plate, no attorney needed. One day I was told that now I would be doing ABL/AR deals. My first deal finally comes in, and it was a nice $1 million deal. Being a small shop, I was told to handle it from beginning to end. It was approved and so I had the attorney send out documents. Since I didn’t really know what I was doing, I called the attorney with a lot of questions. A lot. The deal finally closed. The attorney’s bill came in… $18,000. No one told me that he billed for every single call, every single conversation and every question. I did manage to ask him for a discount. But to this day, I make sure everyone here knows that every call and every e-mail, the clock starts, and, if it’s in increments of 10 minutes, or 15 minutes, use that up to ask every question under the sun.

the time, I was in sales, I found it tremendously helpful to understand the underlying assets, how they are determined for purposes of lending, what our auditors would look for, what our credit manager would be looking at, etc. At some point I had Don Clarke come up and give a class to everyone who touched an ABL deal in our company. From the beginning I was told to attend the mid-year meetings. I didn’t know why as I was a salesperson and no one was there to source deals; they were there to network and really get to know one another. From these mid-year meetings, I was able to call the CEOs of many of the larger firms, call peers, call attorneys and ask for advice, or guidance or bounce ideas off of someone. I made connections there that to this day, still stand.

What role did SFNet play in your career development? SFNet (formerly Commercial Finance Association) played a tremendous role. I attended both the auditing class and the inventory class. Even though at

THE SECURED LENDER OCTOBER 2019 27

Hall of Fame Inductees BIOGRAPHY

Sonny Monosson Boston Financial & Equity Corporation

Sonny Monosson received his B.S. in electrical engineering from MIT and his MBA from Harvard Graduate School of Business. From there he went to work for Cosmopolitan Manufacturing Company, a family business manufacturing menswear and raincoats. While working with the company’s factors, he realized he had an aptitude for finance and that factoring could be a lucrative business, and in 1956 left his father’s company to start his own factoring company, Berkeley Finance Corporation. In 1959 Monosson automated Berkeley with an IBM 1440, named Gretchen, making it the first automated commercial finance company. He had so many requests to consult on how to automate a company that, in 1967, he sold Berkeley and co-founded Boston Computer Group, a specialized consulting company in the computer industry. Clients included the GSA, IRS, Computer Sciences Corporation as well as finance companies. This led him to see the huge growth potential of the burgeoning computer industry and in 1968, he founded American Computer Group (ACG),

Inc., a pioneer in the used computer market. But buying and selling used computers was just one of Monosson’s companies. In 1968 he also incorporated Boston Financial & Equity Corporation (BFEC), a specialty finance company that financed high risk companies, knowing that if he had to repossess the technology equipment, he had the knowhow to remarket it. Boston Financial & Equity continues to operate today, run by his daughter, Deborah. While running both BFEC and ACG, he created Monosson Technology Enterprises, which provided zero-stage capital investing, and acted as editor and columnist for the technology and financial communities for such publications as Digital News, Dataline and The Secured Lender. In 1981, he created a newsletter, “Monosson on DEC,” an analysis of Digital Equipment Corporation and its products. The newsletter was widely recognized and not only read by employees and the general computer industry, but also by the CEO of DEC. Monosson was founding president of the Computer Dealers Association, and inducted into its inaugural Hall of Fame; and also a past director of the Equipment Leasing & Finance Association and inducted in their inaugural Hall of Fame. He was a past director of the Secured Finance Network (formerly, Commercial Finance Association) serving as chair of the Finance, Audit, Public Relations and Small Business Committees as well as on the Executive Committee. The Monosson Prize for Entrepreneurship Mentoring was established at the MIT Sloan School of Management, to continue Monosson’s mission of providing mentoring to will-be entrepreneurs. Monosson provided 55 years of valuable advice and counsel to classmates, clients, competitors, friends and students on starting and

building entrepreneurial enterprises. He created more than ten businesses in the finance, publishing, computer, and leasing industries. Monosson was also a Master Gardener.

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The 2019 Secured Finance Market Sizing & Impact Study The Authoritative Tool for the Secured Finance Industry to Plan, Benchmark, & Raise Capital The Secured Finance Foundation, in conjunction with Ernst & Young, has conducted the first of its kind Secured Finance Industry Market Sizing and Impact Study for the purpose of benchmarking, strategic planning, attracting capital and assisting in advocacy efforts on behalf of the industry. Through primary and secondary research, the study dimensions the size and scope of the commercial marketplace for secured lending and its related products and services. Part primer, part data compilation and part analytical assessment, the study provides the reader with a detailed view into the highly interconnected segments of this network and their collective impact on capital deployment and economic development. The findings dimension an industry that is far-reaching, influential, thriving and presenting significant growth opportunities for its participants to expand their served and available markets.

VISIT WWW.SFNET.COM AND DOWNLOAD YOUR COPY TODAY!

Hall of Fame Inductees BIOGRAPHY Born in Hawaii, Mooney lived outside of Providence, RI, and graduated Johns Hopkins University (BA and MBA). His first position in corporate lending was at Equitable Bank in 1971 in Baltimore (now Bank of America). In 1978, he joined Rhode Island Hospital Trust National Bank (now Bank of America) as executive managing director in the Precious Metals Group, (financing and trading gold, silver and platinum) with offices in London and Hong Kong. In 1992, Mooney joined Gordon Brothers Group in Boston. Mooney was a founder and CEO of Gordon Brothers Finance Company’s (GBFC) first corporate finance group to focus on asset-based lending to retailers. At the time, retail inventory was not an asset that was traditional for assetbased lenders. In 1997 GBFC was acquired by Bank of Boston, and the concept of asset-based lending for retailers expanded significantly. In 1998 the team established BackBay Capital, the first asset-based fund focused on underwriting second lien debt to a wide variety of different industries. In 2006 the team founded Crystal Financial to operate as a non-bank assetbased lender to businesses who required timely, and flexible secured capital to meet their operational and strategic objectives. Today Crystal Financial is owned by Solar Capital (SLRC), a public BDC. Crystal continues to be an industry leader for complex debt underwritings.

Ward Mooney Crystal Financial

What advice would you offer to someone just starting out in the industry? New participants and professionals in the asset-based lending industry are the most important and guaranteed resource for future success. The usual entry positions are either analyst or auditor and both provide a full view of the nuances, challenges, and opportunities of the industry. As in most new career situations, it is important to work hard with an enthusiasm that allows for not only learning and executing the specific tasks of your position, but also to obtain a good understanding of all aspects of the business, and if possible, the expectations and concerns of the clients. Constantly ask questions, meet new associates and, pay attention to opportunities to suggest new ideas and concepts that would have a positive impact on your success and the results of your firm. Delivering a great work product and becoming a change agent are critical for long term success. What are some of the most memorable moments of your career? There are many memorable moments, but from a macro perspective visual-

Mooney currently serves on the Board of the American Repertory Theatre (Harvard University); the Board of Newport Jazz and Folk Festivals; the Board of directors of DXL Group, (Chairman of Audit Committee); the Board of Beth Israel Hospital, Boston (finance committee) 20062008 and served as president and chairman of the Turnaround Management Association (TMA 2005-2006).

izing, initiating and executing a new successful business enterprise is always full of memorable moments. Developing the mission, building the team and exceeding the expectations of your customers and investors creates many good memories that grow out of teamwork and good execution. The memory that always provides the most enthusiasm is winning a new financing opportunity. Important memories are also created when members of your team achieve a high level of success, and career advancement through their hard work, and the results they achieve.

preneurs who had started independent finance companies. I was able to learn many important lessons, regarding leverage, size of the balance sheet, and potential mistakes to avoid. This meeting was an important catalyst to developing the business plan and financial model for GBFC.

What role did SFNet play in your career development? When we were starting up GBFC in 1992, I attended my first Secured Finance Network (formerly Commercial Finance Association) Annual Convention, which that year was in Toronto. At that time there was a subsection of SFNet membership called “small independent financial companies.” At the convention they had time for their own gathering and meetings which I attended. John Fox was the chairman of the committee. At the meeting I was able to meet many successful entre-

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Congratulations to Ward K. Mooney on this well-deserved honor and recognition.

You are a visionary and leader in both our industry and in the community at large. Your commitment to excellence inspires us and we are proud to be your colleagues and friends.

Hall of Fame Inductees BIOGRAPHY Joseph Nemia is head of Asset Based Lending (ABL) at TD Bank, America’s Most Convenient Bank. As Head 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. He joined the bank in 2011 from RBS Citizens Financial Group where he served as president of RBS Commercial Finance. Prior to RBS, Nemia was at CIT where he served as president, Commercial and Industrial. He was also a senior managing director at GE Commercial Finance where he held a number of leadership positions during his 14 years with the company. He was a founding member of GE Commercial Finance and was instrumental in the middle-market build-out of the ABL business. He completed GE Company’s Global Business Management training in Tokyo, and received Black Belt certification in Six Sigma.

Joseph F. Nemia TD Bank

He is a graduate from Pace University – Lubin School of Business, BBA, MBA.

How did you get your start in the industry? My father, also Joseph Nemia, worked in the industry. As a child, you have a nebulous idea of what your parents do—I would go to his office on the weekend and play with the adding machines and the Xerox copier—who knows but that may have planted the seed. I graduated college with a degree in accounting and knew I did not want to work in public accounting. Instead, I accepted a position as a field examiner with Chase Manhattan Bank in New York City. Since then, I have been fortunate to work for some great industry leaders and institutions. As history repeats itself, I can proudly say I am able to pass some of my knowledge to my son, another Joseph Nemia, who is now in his seventh year in the industry.

learn. For me, graduate school, which I attended at night while working full time, imparted on me a deeper understanding of banking and finance. Finding a mentor is an invaluable investment, as much of our business is experiential and talking through experiences with a mentor is a great way to learn.

What advice would you offer to someone just starting out in the industry? The first step is to broaden your industry knowledge beyond your current job through formal education and industry insights. For example, young professionals should consider joining a local SFNet chapter to network and

Nemia is a Trustee of National Jewish Medical and Research Center, he serves on the Board of Directors for Junior Achievement in Stamford/Greenwich CT, and is a member of Loyola School’s Finance and Audit Committees. He is a former SFNet chairman and president.

What are some of the most memorable moments of your career? My favorite memories are centered around the community and culture of our industry. One great memory is when I was honored by National Jewish Health and as an industry we raised close to $500,000. My family was there, including my young children, so I was glad they were able to see the importance of community giving. I also fondly remember my keynote as the outgoing chairman of SFNet. It’s wonderful to see how the Association has evolved over the years. When I first started, conferences were held in formal settings with business formal attire. Over the years, I had recommended the organization hold conferences in resorts with business casual attire. As I gave my keynote at the JW Marriott in 2007, I remember seeing a large audience in

business causal. I pushed for business casual and resorts, and the old guard thought I was such a maverick. What role has SFNet played in your career development? SFNet has played a fundamental role in my career development. My initial involvement began with a weeklong field examination class. I later became an instructor for the business development class and was given the Instructor of the Year award at the organization’s annual convention. Along with two other industry leaders, Terry Ullrich and Joe Huston, we started the local New York chapter. Terry Ullrich is also being honored posthumously and receiving a lifetime achievement award for his contributions to the industry, and I am proud to have worked alongside him. Right from the start, we had 150 lenders at our first meeting. Today there are over 20 local chapters, and it’s rewarding to watch the program continue to grow.

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BIOGRAPHY Mr. Nickoll retired in 2007 after serving as President, Chairman, and Chief Executive Officer of The Foothill Group, Inc., a subsidiary of Wells Fargo. Prior to merging with Wells Fargo, Foothill was an independent company listed on the New York Stock Exchange. Mr. Nickoll was also Managing General Partner of seven investment partnerships which invest primarily in senior bank debt, both par and distressed issues. Prior to co-founding Foothill, Mr. Nickoll was President (1963-1970) of Civic Western Corporation, a Los Angeles-based commercial finance company, which was later sold to Aetna Life and Casualty in 1969. He also served as Chairman of the Board and Chief Executive Officer of C.V. American Corporation, a healthcare conglomerate, from 1970-1972. From 1960-1963, Mr. Nickoll was employed by Civic Finance in Milwaukee, Wisconsin and worked in various capacities as in-house Counsel and Vice President. Mr. Nickoll is a Cum Laude graduate of Brown University and received his J.D. degree from the University of Michigan Law School. Mr. Nickoll served as Trustee of Brown University from 1981-1987. Mr. Nickoll has been honored by the following organizations: 1997 Honoree of the Beverly Hills Education Foundation; 2002 Honoree of the National Council of Community and Justice; 2002, Richstone Children’s Center; 2003, Children’s Burn Foundation. Mr. Nickoll has two grown sons. Mr. Nickoll and his wife reside in Los Angeles.

John F. Nickoll

The Foothill Group, Inc. Mr. Nickoll recently donated $1 million to the California Council on Economic Education (CCEE) — the leading nonprofit provider of economic and financial education for K-12 educators and students in California. The gift is intended to motivate others to support the 60-year old nonprofit, and economic and financial education and Los Angeles County. The donation will also help to sponsor a partnership between the Los Angeles Unified School District and CCEE to engage high school students and their families in structured dialogue on personal finance topics at free workshops. How did you get your start in the industry? After graduating from University of Michigan Law School, I started as house counsel with Civic Finance in Milwaukee. I was involved in the process to go public and assisted with underwriting also. I told the top executives there that we needed another office, outside of Wisconsin. I was the only one willing to move to establish the office, so I moved to Los Angeles in 1963 and established a subsidiary called Civic Western Corp. It grew to become bigger than the original

company. When we sold to Aetna in 1969, I became involved in the merger negotiations. I didn’t think Aetna would stay in the finance business, so I moved on and started up Foothill with a couple of other colleagues. We originally did venture capital. What advice would you give to someone just starting out in the industry? I would advise young professionals to start their own company, if possible. Of course, you usually need to first start with an established company. In that case, make sure you work with people you like and work your way up. There are a lot of choices in this industry and you can be creative. Just like anything, it’s what you put into it. Find a way to compete in a unique way. While at Foothill, we discovered a new way to finance healthcare receivables. We financed medical receivables from convalescent homes.

when we financed MCI. At the time, MCI wanted to buy equipment from a Canadian company. Allen & Co. did the larger underwriting. We said we would only pay them as we got payments, so we held no exposure. It was called ingenius. Another memorable moment was financing one of Donald Trump’s casinos that had gone bankrupt. It was actually one of the safest deals we did.

What were some of the more memorable moments of your career? In the mid-70s Foothill was able to sell our Rolamite assets (a technology for very low-friction bearings). Rolamite was known for having the third best way of doing everything. Another memorable event was

THE SECURED LENDER OCTOBER 2019 33

Hall of Fame Inductees BIOGRAPHY Andrea Petro is a managing director at Waterfall Asset Management, LLC, where she leads the Specialty Commercial Finance Group for the firm. Andrea began her commercial lending career with First City National Bank of Houston. Andrea began lending to specialty finance companies at Transamerica Business Credit in 1992, and in 2000 established the Lender Finance Division of Wells Fargo Capital Finance, which she led for 17 years. Andrea is the past president of Secured Finance Network (formerly Commercial Finance Association) and is a member of the SFNet Board of Directors. She is currently a member of the Secured Finance Foundation Board of Directors. She is also a member of the M.S. Advisory Council of the McCombs School of Business at The University of Texas at Austin. Andrea graduated magna cum laude with a Bachelor of Arts degree from Kent State University and received a Master of Business Administration from The University of Texas at Austin.

Andrea L. Petro Waterfall Asset Management, LLC

How did you get your start in the industry? I was recruited by the ABL subsidiary of the bank that I joined after graduating from the MBA program at the University of Texas at Austin. I began my lending career as a middle-market banker in Houston, Texas. The bank relied on the asset-based lending group for expertise on collateral and audits and the ABL group was frequently in our credit committee. As a young banker, I was permitted to pitch the easy deals to the committee. For some reason the ABL group decided they liked me and thought I would be a good fit for their business. I was very lucky to have been sponsored by the ABL group head. Most of the managers had been recruited from GE and I benefitted significantly from their expertise and training. They were incredibly knowledgeable and generous teaching me all the nuances of assetbased lending. What advice would you offer to someone just starting out in the industry? Learn everything you can about different disciplines and functions within

the asset-based lending industry. Don’t be afraid to take on positions that may be lateral moves if they provide the opportunity to explore and develop in-depth knowledge that could enable you to become an expert within a role or an industry that appeals to you. At the same time develop quality relationships within your organization and also with colleagues in the industry. Volunteer for projects and committees in which you can learn to work effectively with teams. What are some of the most memorable moments of your career? Being hired to develop a de novo Lender Finance business for Transamerica Business Credit in 1992 after a 30-minute interview! Joining Foothill Capital Corporation in 2000 and working with Scott Diehl, Henry Jordan, John Nickoll and Peter Schwab, who all taught me extremely valuable lending and management lessons. Closing the first transaction for Waterfall Asset Management after joining the firm in 2018.

The formal and informal educational resources available through the SFNet have proved to be invaluable and have helped me to establish a comprehensive understanding of how to lend to higher risk obligors and seek to avoid losses. Just as important are the relationships established which have been instrumental in many employment opportunities that were made available to me throughout my career. Additionally, being an active member of the SFNet provides experience working on committees and offers insights on how to effectively manage teams to achieve shared goals.

What role did SFNet play in your career development? SFNet (formerly Commercial Finance Association) has served as a solid foundation for my career. When I first became an asset-based lender, my management team encouraged me to become a member of SFNet.

DON’T MISS SFNET’S 75TH ANNUAL CONVENTION NOVEMBER 13-15, 2019 TO REGISTER VISIT WWW.SFNET.COM

NOVEMBER 13 - 15, 2019 | NYC MARRIOTT MARQUIS TIMES SQUARE

We have a fantastic lineup of panels to help you see around corners and make the best decisions for your business. From leading private debt and equity players and supply chain experts to M&A advisors, ground-breaking economists and the best minds in the legal community, industry authorities will shed light on the issues affecting your business now and in the future. We'll provide the latest data and forecasts including all new studies dimensioning the secured finance market and examining its inter-relationships. Whether you are an ABL lender, factor, advisor, intermediary or other, there is something for everyone in our Network.

Our Keynote Speaker Line Up

PETER ZEIHAN GEOPOLITICAL STRATEGIST, THINKER, FUTURIST

MARCI ROSSELL FORMER CHIEF ECONOMIST, CNBC AND CO-HOST OF SQUAWK BOX

STEPHANIE KELTON ECONOMIST & PROFESSOR OF PUBLIC POLICY AND ECONOMICS, STONY BROOK UNIVERSITY

WALDO WALDMAN RETIRED US LIEUTENANT COLONEL, U.S. AIR FORCE

JILL SCHLESINGER BUSINESS ANALYST, CBS NEWS

ROBERT WESCOTT, PH.D. PRESIDENT, KEYBRIDGE

SFNet.com

Hall of Fame Inductees BIOGRAPHY Bob Sandler is currently a business and financial consultant and serves on the board of directors for Accord Financial Corp. He is a former executive vice president and member of the board of directors of HSBC Business Credit (USA) Inc., an affiliate of HSBC bank USA, involved in credit, management, new business and marketing. Bob was one of the founders of Republic Factors, an affiliate of Republic National Bank, then HSBC Business Credit. He retired from there in 2000. He was officer and director with Business Factors from 1954-1963. He also worked for L.F. Dommerich (Chemical Bank) from 1964-1968; and William Iselin (CIT) from 1970-1977. He is a graduate of the Wharton School of Business, University of Pennsylvania, and attended the graduate school of business at Columbia University. He is a past president of the University of Pennsylvania Alumni Association of Westchester and Rockland Counties. Bob is a former member of board of trustees of the New York Institute of Credit. He is also the author of various articles on factoring and commercial finance.

Robert Sandler

Republic Factors/ Accord Financial Corp. Bob is a past chairman of the board of SFNet (formerly Commercial Finance Association). He was a 1st lieutenant in the United States Air Force and has been honored with many awards including: The 1986 National Humanitarian Award by the National Denver Hospital; 1991 recipient of Human Relations Award by the American Jewish Committee; 1998 alumni Award of Merit by the University of Pennsylvania; 2000 Trustees Award by the New York Institute of Credit; and the 2000 Top Hat Award by the 475 Club. Bob is also a fundraiser for National Multiple Sclerosis Society and an Ambassador for the Westchester Arts Council and on the board of directors of Purchase College affiliates. How did you get your start in the industry? I wanted to be an actor, even while attending the Wharton School of the University of Pennsylvania. After graduating, I served in the Air Force, got married, and when discharged, I really needed a job. My dad was in our industry. He was a principal of a small factoring company, Business Factors Corp. “Well,” he said, “we will put an F

in front of the actor...” and the rest is history. I became a factor. It’s been a great run. I am one lucky guy! What advice would you give to someone just started out in the industry? Find out the background and history of the asset-based finance industry, and where it fits in the economy. What role are you filling? Find a mentor, ask questions from the smartest person you know. Most likely they’ll be pleased to help. If you work with passion, you will be rewarded. I also suggest young professionals find classes at SFNet that will add value. Make friends of your colleagues. Be honest, hardworking and patient. Remember that very little happens quickly. Challenge yourself to grow and learn. And don’t be afraid to fail. Often more is experienced from failure than success. Don’t forget to smile, laugh, and enjoy what you do.

the U.S. and, although the bank was sold to HSBC, the factor’s core, now at CIT, remains strong. And, of course, my role as president and chairman at SFNet (formerly CFA) brought great personal rewards and satisfaction. I treasure the opportunity and friends in the industry. I am so blessed and fortunate to be part of it. How did being involved with SFNet affect your career? My involvement with the association provided exposure that I could never have expected. This ever-changing industry continues to grow and expand. The privilege of leading it at a time of change was one of my career highlights and it has continued to keep me involved in this dynamic, exciting business. Of course, my beautiful, supportive family was the centerpiece of all I did and continue to do.

What are some of the most memorable moments from your career? The wonderful friends made in the industry and the important credit clubs that offered both business and social engagements with networking. Becoming one of the founders of Republic Factors was exciting and rewarding... from nothing we created and built one of the finest factors in

DON’T MISS SFNET’S 75TH ANNUAL CONVENTION NOVEMBER 13-15, 2019 TO REGISTER VISIT WWW.SFNET.COM

Congratulations Accord Financial Corp. Director,

Robert Sandler Since 2010, Robert’s experience and wisdom have helped guide us as we’ve grown our business. We thank you for all your contributions and congratulate you on this well-deserved recognition.

Serving clients throughout the US and Canada, Accord helps businesses manage cash flow and maximize opportunities with a broad range of asset-based lending solutions. Our entrepreneurial spirit aligns with our clients’ ambitions, and our financial strength makes us the lender of choice for companies financing acquisitions, restructuring and rebuilding, or transitioning to the next level of growth. WWW.ACCORDFINANCIAL.COM | USA 844.725.4225 | CAN 844.932.9940 WW

Hall of Fame Inductees BIOGRAPHY Bruce Schimberg was born in Chicago in 1927. Following service as an officer at Gen. MacArthur’s Headquarters in the Army Occupation Force in Japan, he received a PhB (1949) and a JD (1952) from the University of Chicago. He was a partner at Sidley Austin in Chicago for many decades, where he started the commercial finance group and was a member of the Sidley Executive and Management Committees. Mr. Schimberg served on the Board of Managers of the Chicago Bar Association; was a founding member and a Chair of the Board of Regents of the American College of Commercial Finance Lawyers; a founding member and Chair of the Commercial Finance Services Sub-Committee of the American Bar Association. He was appointed to the Chicago Board of Education to represent all professions in Chicago.

A. Bruce Schimberg Sidley Austin, LLP

He received the American College of Commercial Finance Lawyers’ “Homer Kripke Achievement Award for Lifetime Achievement and Contribution to the Field of Commercial Financial Law”. Mr. Schimberg was General Counsel of the SFNet (formerly CFA) for seventeen years, and appeared in the Supreme Court and appellate courts on issues affecting commercial financing. After retirement from Sidley Austin, he served as an arbitrator and mediator of complex commercial disputes. He is a Fellow of the College of Commercial Arbitrators. What are some memorable moments of your career? An early memorable moment as a lawyer arose from the 1960-65 Billy Sol Estes fraud and ensuing litigation in Texas. It involved collateral of warehouse receipts of grain in substantially empty grain elevators, and security interests on non-existent anhydrous ammonia tanks. Grain silos claimed to contain grain were filled with straw and dirt, covered by a thin layer of grain to deceive inspectors. Bribery was said to have

placated federal and state Commissioners of Weights and Measures who supervised the issuance of warehouse receipts. Some SFNet (formerly CFA) members had been financing various Estes businesses, based on the security of warehouse receipts and numerous anhydrous ammonia tanks. The highest exposure of a lender in this group was about $5,000,000. It was seen as the largest potential loss in the industry to that date. Attorneys representing the largest holders of warehouse receipts, chattel mortgages and “guarantees” on tanks requested that I (then in my 30s) be the lead attorney, among separate counsel for each of the lenders. Estes and his accountants were found to have placed some loan and business proceeds in Swiss bank accounts. His accountant was found dead of gunshot wounds in his back; the Coroner reported that he died “in self-defense”. I was told that, during the course of the investigation, government agents had wired my hotel room to track the progress of the investigation, since the investigation might implicate some high-ranking officials appointed by the president, Lyndon Johnson. In due course, Estes was sent to prison and some financial recovery was realized from the Swiss bank accounts and sale of his property.

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BIOGRAPHY Peter Schwab was the chairman and CEO of Wells Fargo Capital Finance. Peter also served on the Management Committee of Wells Fargo Bank. A 39-year veteran of the asset-based lending industry, he joined Foothill Capital Corporation in 1983, becoming its president and chief operating officer in 1986. Norwest Corporation then purchased the company in 1995. In 2000, he was named chairman and chief executive officer of Wells Fargo Foothill and, in 2006, he took the position of group head of the Asset-Based Lending Group, now known as Wells Fargo Capital Finance. Prior to joining Foothill Capital Corporation, Peter was vice president of Business Development with BarclaysAmerican Business Credit. He started his career as a business development officer at the National Acceptance Company of California. Peter serves as an emeritus member of the Board of Advisors for the Entrepreneurial Studies Center at the University of California, Los Angeles Anderson School of Business, a board member of Stonegate Capital, a board member of Tennenbaum Capital Partners (NYSE), a board member of Rexford Industrial Reality, Inc. (NYSE).

Peter Schwab

Wells Fargo Capital Finance What advice would you offer to someone just starting out in the industry? The first thing I learned, day one, when I joined the industry, and it’s something I continued to do until the day I retired, I was always willing to ask questions. My advice is: if you don’t know something, or don’t understand something, it’s important to be sure that your ego doesn’t get in the way and ask a lot of questions – even about the littlest things. As a rookie in the business, I carried a notepad with me, and anytime I was in a meeting and I didn’t understand something, I jotted down the question. Then, at the appropriate time, I was sure to go back to the right person and get an answer. This is extremely important advice for someone who is just starting in ABL or factoring. How did you get your start in the industry? Let me start by saying that I have do not have a degree in finance or accounting. I do have a bachelor’s degree and master’s degree in education which, of course, has nothing to do with the asset-based lending business. I got my start in this industry by meet-

ing Barry Grossman, whose father was the head of the National Acceptance Company of California. He thought I could be a good salesman and asked me to join their firm, which I did in 1971. Both he and Irwin Teich who is being honored here tonight, spent two years teaching me the business from top to bottom and the rest is history. Although I left education, I’ve never looked back as this business was always a challenge and a really lot of fun. What are some of your most memorable moments during your career? I could tell you about many memorable things during my career. An example was financing the Los Angeles Lakers or financing the Houston Astros. Great seats, going to parties with players and owners and going to the NBA finals. But all the memories were interesting, but some not so much “fun”— an example is during the early days of my career we foreclosed on a trucking company and I had to drive all around the state of Nevada and Arizona to find the trucks that the drivers had hidden so they could use them as leverage in order to get paid. Or I can remember when I joined Foothill and was staring at my first big loss and had to go to the founder of the company, John Nickoll (also an inductee into the Hall of Fame) and

had to tell him that we were about to write off a large sum of money. Knees shaking, I told him the story and his response was: “Peter, it’s a loss; take it and let’s get on to the next thing”. It was memorable and taught me a lot about how to approach this business, which is really risk management and you realize that not everything is going to go smoothly. What effect did SFNet have on your career? This probably sounds like mom and apple pie given the fact that I’m receiving this honor from the SFNet. Without my experience in our trade association I would have never been able to achieve the things I accomplished in our industry. I will repeat what I said as part of my retiring chairman’s speech at our convention: This is a business about relationships and the relationships that I cobbled out by being a member of the SFNet played a big part in shaping my career in our industry. Even though we were all competitors, we had a lot in common and were able to all work together for the betterment of each of our companies. Many of my closest business relationships were established through SFNet. Today I still consider many of the colleagues that I met at through SFNet as friends.

THE SECURED LENDER OCTOBER 2019 39

Hall of Fame Inductees BIOGRAPHY Michael D. Sharkey is the president of Fifth Third Business Capital. He oversees a nationwide market with regional offices across the United States and Canada. Sharkey has more than 40 years of experience in financial services. Prior to the Fifth Third Bank merger with MB Financial, Sharkey was responsible for the bank’s asset-based lending group, Cole Taylor Business Capital and then MB Business Capital. For 15 years prior, he ran LaSalle Bank’s nationally-ranked asset-based lending group. As president and CEO of LaSalle Business Credit, he helped build the group into the fifth largest asset-based lending company in the United States. During his tenure at LaSalle, he also served as executive vice president for LaSalle Bank and ABN Amro. Sharkey began his career in financial services with GE Capital as a field examiner and loan officer and moved on to Manufacturers Hanover Commercial Corporation where he served as senior loan officer. From there, he joined and within four years became president of StanChart Business Credit, which was ultimately acquired by LaSalle Bank. Sharkey is a permanent member of the Executive Committee of the Secured Finance Network, as well as past president and chairman of the Association. He is also past president of the American Brain Tumor Association. Sharkey is a graduate of Rutgers University and J. L. Kellogg Graduate School of Management at Northwestern University.

Michael D. Sharkey

Fifth Third Business Capital How did you get your start in the industry? When I first graduated from college with an accounting degree, I went through U.S. Steel’s management training program. I spent a week a month in Pittsburgh with my peers solving case studies and developing my management skills. Upon graduation from that program I decided to put my accounting degree to use. The audit manager at GE Commercial Corp in Chicago, Jim Carlock, gave me a chance to put my degree to work and hired me as a field examiner. Shortly after that he hired Rick Simons who is currently one of my credit heads. That was in 1978. Rick and I have been together off and on ever since. I am proud of my entire team, many of whom have been with me for two or three decades, some going all the way back to StanChart, some to LaSalle and others to Cole Taylor and MB and now Fifth Third. The value of ABL has always been recognized by the institutions acquiring our banks and because of that we have survived and provided a vibrant and successful platform for us all to thrive and succeed on.

What advice would you offer to someone just starting out in the industry? We hire young people out of college to go through the bank training program and then work in ABL. We require all of those young people to spend time in operations and field exam. The time in field exam is critical to gaining a fundamental understanding of how to margin and monitor collateral which is important to underwriting and account management. Young people should not cut corners. I also found my MBA in accounting and finance to be of critical importance.

What role did SFNet play in your career development? My involvement helped my career in many ways through education and networking at both the chapter and national level. I encourage everyone to get involved and to give back to our industry.

What are some of the most memorable moments of your career? Many of the most memorable moments in my career are tied directly to SFNet, (formerly, Commercial Finance Association). Those moments include when I was first named a director, when I chaired the annual convention, when I was elected to the Executive Committee, when I was named to Management Committee and finally the chairman of the association. I made many great friends through SFNet, many of whom will be named to the Hall of Fame. I am grateful and humbled to be honored along with them.

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Hall of Fame Inductees BIOGRAPHY Irwin Teich retired as president and chief executive officer of Fleet Capital, the Commercial Lending Division of FleetBoston Financial (later acquired by Bank of America) in June 2001. Fleet Capital had offices in every region of the country and provided business financing to the middle market. Teich held several key positions since joining its predecessor company in 1973. He was appointed president in 1984 and CEO in 1997 and established a culture that built customer and employee loyalty that became a way of life throughout the company. Under his leadership and vision, managed assets grew from $294 million to $12 billion and profits grew from $32 million to over $238 million pre-tax at the time of his retirement. Teich served on the Board of Directors and Executive Committee of Fleet Capital and was chairman of the Systems and Audit Committees. He was the chairman of the Secured Finance Network (formerly Commercial Finance Association) and executive vice president of the Commercial Finance Division of the City of Hope. He also served on the Vision Committee of Eagle Ranch for Boys and Girls, the Board of Directors of Meals on Wheels of Metropolitan Atlanta and the Board of Directors of Witness Breakthrough.

Irwin Teich

Teich is a graduate of Roosevelt University in Chicago, IL. He and his wife, Shirl, have been married for 37 years and reside in Naples, Fl. They have two children, seven grandchildren and two great grandchildren who reside in Atlanta, GA.

Fleet Capital

How did you get your start in the industry? After I graduated college, I went into the Army and then moved from Chicago to Los Angeles and a year later married. My father-in-law, Marvin Grossman, was the manager of a commercial finance office of National Acceptance Co., a subsidiary of Walter E. Heller Co. He was clearly my mentor from the beginning and taught me sales and equipment appraisal. After a few years I was recruited to a competitor to manage their Western Regional office. Once again, I was very fortunate to work for John Kerecman and he became my second mentor and he taught me credit and how to manage. What advice would you offer to someone just starting out in the industry? There are four basic skill requirements (not including management and leadership) needed to be successful in our business: sales, credit, auditing and workouts. Whatever function you are interested in, you have to continue improving your knowledge and development throughout your career by attending classes at the SFNet and classes outside our industry. Find someone who will show enough

interest in you and has experience you do not have that you can develop a mentoring relationship with. Read everything you can to expand your knowledge, never stop learning, expect from yourself what you expect from any professional. What are some of the most memorable moments of your career? There are a number of great memories I can reflect on. The first that comes to mind is just after I was promoted to president and I had a strategic planning meeting with my senior management people. During that meeting we agreed that we had to develop a Mission Statement that would carry not only to our employees but to our customers as well. We decided on a short statement, one that had a lot of meaning to us, which was “We Build Relationships”. To us that meant relationships with our fellow employees and all our customers. That changed the culture of our organization from then on. It is the organizational environment and culture that sustains the will to be successful and loyal to each other. We printed that phrase on our business cards and on everything that had a flat surface and we all lived it! There are a number of other

great memories but one that also was very memorable to me was when I had been president for about 10 years, we made our first $100 million pre-tax profit. In our organization we shared a part of our profit with all our employees through the Management Incentive Plan (M.I.P.). We shared our P&L statement every month with them so they could see the benefit of their efforts by the increase in the M.I.P. pool as profits increased. That was big for everyone at Christmas when we distributed the M.I.P. pool. What role did SFNet play in your career development? I was fortunate because I became active when I was in my mid-30’s. I always attended as many of the sessions as I could and I tried to meet and get to know as many of my competitors as possible. I learned a lot in the sessions and from my competitors. Through these conferences a trust grew that helped with exchanging information and in syndicating transactions. It also helped in better understanding our industry, our industry’s role in the market place and in developing our short and long term strategies needed to compete.

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BIOGRAPHIES

Stephen C. Diamond

Frank J. Donahue

Walter M. Einhorn

STEPHEN C DIAMOND was born on September 28, 1935 in Beverly Hills, California. He graduated from Stanford University at the age of 20 and then went on to law school at USC where he was the editor of the Law Review. Stephen joined the legal department of Walter E. Heller & Co. in 1959. Before that he was a practicing tax attorney. In 1961, Stephen was placed in charge of review of prospective client loan eligibility in connection with accounts receivable financing, and became administrator and supervisor of the accounts receivable portfolio of Heller’s Midwest operation. He assumed the position of senior vice president in 1970 and was in charge of Heller’s commercial finance operation in 15 states. He was a visionary in the business community and his last official position was as chairman of American National Bank in Chicago. Stephen was very philanthropic and was the president of the Chicago Chapter of the AJC. Integrity was a core value to him. He had a wry sense of humor and loved to laugh. Stephen was married to Beverly Diamond and had three sons — Robert, Ronald, and Kenneth. His son, Ron, remembers his “a wonderful father and husband who felt that family was the most important thing in life.” Stephen He was a voracious reader and loved to constantly learn. He finished the Chicago marathon which was a goal of his. Stephen developed prostate cancer at the age of 53 and ultimately passed away at the age of 57.

FRANK DONAHUE commenced his career in banking in the accounting department at New York Trust Company. In 1960 New York Trust was merged into Chemical Bank, where Mr. Donahue rose through Chemical Bank’s commercial finance department. In 1975, he was recruited to head the Commercial Finance Group at Chase Commercial Corp., a subsidiary of Chase Manhattan bank. In April 1985 Frank Donahue joined the Bank of New York and established a de novo commercial finance company, The Bank of New York Commercial Corp. He was a sole arbitrator for the American Arbitration Association. He also lectured on industry topics and authored several articles relating to ABL. He was a graduate of St. John’s University. Frank served as past chair of SFNet (previously CFA) in 1990. In 1991 he was honored at the National Jewish Health Financial Industries Dinner where he received the Humanitarian Award. He was warmly referred to by his friends as a “monk in a banker’s suit” and the “Bishop of The Bank of New York.”

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 Secured Finance Network (formerly Commercial Finance Association) and chairman of West Deptford Soccer Club. Walter’s nominator for the Hall of Fame honor, Daniel Stella, said, “Walter was a proponent of SFNet (formerly CFA) as an association, as well as the profession of asset-based lending, while ultimately serving as chairman of the Association. He convinced me to join the Board of the Philadelphia Chapter, where I eventually became president. Walter had a reputation as a task master and a loud confrontational style, but many considered his credit skills and business acumen beyond reproach, and he had a level of compassion that was only revealed to those who knew him well. His support for me during a difficult time will always be appreciated.” Walter passed away in 2018, leaving behind his wife of 58 years, Dolores; children Walter M. (Heidi) Einhorn, Jr., Katrina (Richard) Rothstein and Samuel Gregory (Shannon) Einhorn; and grandchildren Walter, Jack, Samuel, Mitchell, Raquel, Mia, Beckett and Oliver.

American National Bank

Bank of New York

WALTER EINHORN was born and raised in Philadelphia, PA. After attending North Catholic High School, Walter graduated with a bachelors 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 progressed to

Sunrock Capital Corp.

THE SECURED LENDER OCTOBER 2019 43

BIOGRAPHIES

Hall of Fame Inductees

Robert I. Goldman

Bron D. Hafner

BOB GOLDMAN was chairman of Congress Financial Corporation. Bob’s father, Maurice, founded both Congress Financial and Congress Factors. Congress was one of the original ABL finance companies. With a history spanning more than 50 years, Congress grew from a small ABL lender to be a powerhouse with a portfolio of more than $24B spanning dozens of industries located in every part of the US. Bob was instrumental in overseeing all of that growth. He was the public face of the company and an ambassador for the ABL industry as a whole. He was an early member of SFNet (formerly Commercial Finance Association) and instrumental in the association’s growth. Bob’s vision was ever-expanding and led to Congress ultimately acquiring Burdale Financial, a small invoice discounter located in London that went on to become one of the leading ABL lenders in the UK that still exists even today as part of the Wells Fargo Capital Finance organization. According to Bob’s nominator, Mark Fagnani: “Bob built a unique company where loyalty was valued. Congress had dozens of employees with tenures of 25 years or more, almost unheard of in this day and age. Were it not for the vision and leadership of Bob Goldman, the ABL industry as we know it today would very likely not exist.”

Bob’s daughter, Olexa shared her memories of her father: “He was unique in the sense that, no matter how successful he was, and no matter what he had accomplished he was truly the most humble and kind person. When he ran Congress Financial Corporation, and it grew quite big, he never lost sight of the people in it. I worked there one summer as a teenager and I floated in all the departments and the one common denominator that I saw was that he was not only well respected, but he was also well liked because he was so kind. My father was very frugal, a simple man that would be happy to brown bag it to work. My mother said it best; he was a true gentleman in every sense of the word.”

Congress Financial Corporation

Celtic Capital

since 1982. He was an active member of SFNet and served as Director from 19831999. He was a member of the Executive Committee from 1986-1990 and again from 1991-1996. He was Chairman of Small/Independent Finance Company Committee (today the IFFR) from 1985-1988 and was a member of the Western Committee on Education from 1983-1987. He was also an active member of the Commercial Finance Conference of California, Inc. and served as Director from 1983-1997; Vice President from1985-1987; President from 19871989 and Chairman from1990-1991. Hafner was involved with the advocacy group that met with lawmakers in Washington each year back in the 1980s and was involved and attended the initial meetings of what is now the IFFR, in addition to being its chairman as mentioned above. Hafner always lent a hand to a fellow SFNet member starting their own company, sharing advice, processes and forms of documentation to help other entrepreneurial members get started. He was also an annual contributor to the CFA Education Foundation from its inception until he retired.

BRON D. HAFNER began his lending career with Union Bank in 1961 and moved into asset-based lending in 1963 with Civic Western Corporation and its successor, Aetna Business Credit. He then co-founded and served as president of Financial Guild of America until 1982. He sold his interest in Financial Guild to his partner and started Celtic Capital Corporation in 1982. Celtic Capital has been an active member of the Secured Finance Network (formerly Commercial Finance Association)

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BIOGRAPHIES

Walter E. Heller

Bruce H. Jones

WALTER E. HELLER was a U.S. financier and philanthropist, who founded Walter E. Heller and Company, Inc., Chicago, IL with money borrowed from his father in 1919. He originally started the company to do “automobile financing” as autos became more popular in the 1920s. The firm developed into a highly successful, multi-faceted international financial company that was a leader in various fields of finance, particularly in factoring. The company also offered leasing, asset-based lending, commercial real estate lending and owned manufacturing companies located throughout the United States and abroad. The manufacturing subsidiaries were subsequently sold off, as required by U.S. anti-trust bank ownership laws, when the company purchased American National Corporation in Chicago, the holding company for American National Bank and Trust Company, in 1973 for $108.8 million. Ten years later, Walter E. Heller International Corporation sold American National Corporation to First Chicago Corporation for $275 million. Walter E. Heller International was purchased in 1985 by Fuji Bank and was renamed Heller Financial when new leadership was brought in to change the focus after U.S. banks began competing directly with commercial finance companies and business

lending institutions. Heller Financial began trading on the Chicago Stock Exchange on May 8, 1998. At that time, it was one of the largest initial public offerings on record. Subsequently, Heller Financial was purchased by GE Capital during the early 2000s. Mr. Heller was a pioneer of the use of factoring and developed it into a more sophisticated form of finance of company business accounts receivable. The Roosevelt University business school is named after him while Brandeis University’s Heller School for Social Policy is named after his wife, Florence. Several Chicago-area parks bear his name, as well as the Walter E. Heller Foundation, a philanthropic supporter of PBS.

Walter E. Heller & Company, Inc.

Secured Finance Network

BRUCE JONES was with the Secured Finance Network (formerly Commercial Finance Association) for 42 years, serving as executive director for five years. He retired in 2007. Right after completing college (Brooklyn College), he was drafted into the Army. He spent two years in the Army, much of which were served in Bremerhaven, West Germany as a cryptographer in the Signal Corps. He was the third chief administration officer of the trade group. In addition to his SFNet work, Jones was involved in local New Jersey politics. In 1981 and 1982, he was on the Township Committee of South

Brunswick Township. Also, in the late 70s and early 80s, he served on the Planning and Environmental Committees of the Township. Jones lost his battle with Alzheimer’s disease surrounded by the love of his family on Wednesday, January 18, 2017. He is survived by his wife of 50 years, Kathryn G. Jones, a son, Greg, daughter-in-law, Milada, and a daughter Alexa. Bruce is also survived by two grandchildren, Mia and William. Industry leaders who knew Bruce well said: “I remember Bruce graciously welcoming me at my first conference in Washington, DC and mid-year meetings. I remember his friendship and loyalty as we developed what was then called the ‘small independent’ lenders and factors group. I remember him helping me find the right words of ‘welcome’ at the San Francisco conference immediately after the 9/11 tragedy.” “I worked very closely with Bruce for many years. He was always cooperative and very helpful and had good judgment. We shared many a good joke. His humor was infectious. His love of poetry and singing brings a smile to my face.” “He was a good friend and colleague, always had a smile, always willing to help. He will be missed.” “There was never I time I was with Bruce that I didn’t enjoy his company. He did a lot for SFNet and was a very special person.”

THE SECURED LENDER OCTOBER 2019 45

BIOGRAPHIES

Hall of Fame Inductees

LeRoy L. Kohn

Theodore J. Kompa, Sr.

LEROY KOHN was born in Chicago in 1918, he graduated from Northwestern University in 1939 with a B.S. in business administration and attended University of Arizona Law School. He served in the U.S. Army Air Corps in WWII as a Second Lieutenant. After the War, he joined Mercantile Financial Corporation, the oldest independent finance company in Chicago (founded by his father, Hyman Kohn, in 1917), eventually becoming its Chairman and CEO and taking the company public on the American Stock Exchange. Among the more unusual transactions he worked on at Mercantile were loans to finance the production of “The Graduate,” “The Lion in Winter,” “Cabaret” and “The Producers.” His involvement with films began much earlier when, as a student at the University of Arizona, he appeared on horseback as a member of the posse in the film “Arizona” starring Glenn Ford. Kohn first became a member of the SFNet (formerly Commercial Finance Association) Executive Committee in 1958 and served as its President in 1973-74 and its Chairman in 1975-76. He truly loved SFNet, especially for all the close friendships he developed, and derived great pleasure from watching the association grow and evolve over the years, even long after he retired. Kohn retired from Mercantile in

1979 and moved to Pebble Beach, CA, but remained active as a business consultant. He was also active in various local charities and other organizations, including Shelter Outreach Plus, the Food Bank of Monterey County, SCORE, California Coastal Rural Development Corporation and Sons in Retirement. An avid golfer throughout his life, he once played in the Bing Crosby Pro-Am, delighting the gallery when he sank his trap shot on the 18th green at Pebble Beach. Kohn died in 2002, just shy of his 84th birthday.

Mercantile Financial Corporation

Agenta, LLC

TED KOMPA was a successful businessman, a loving father, grandfather, husband, and friend to many. Raised in South Jersey, he attended St. Joe’s High School where he was an excellent basketball and football player. Kompa attended Villanova University on a football scholarship where he graduated with a BS in economics and accounting. He further went on to receive an MBA with a concentration in finance from Drexel University. In 1964, he started his professional career at Fre-Air Corporation, John Talcott, Inc., Heritage Bank, Union Bank and First Fidelity Bank. In 1995, he parlayed his banking experience and started a commercial finance company named Business Alliance Capital Corporation. After 13 successful years,

in 2008, he moved on and focused his efforts as Chairman of the Secured Finance Network (formerly the Commercial Finance Association). In total, Kompa had 38 years of experience in asset-based lending, commercial finance, and middlemarket commercial lending. He is Past Chairman of the Secured Finance Network and was a member of its Management Committee. During his career Ted successfully started two finance companies, managed billiondollar portfolios, and was a frequent speaker on asset-based lending, credit and risk management, fraud and workouts. Most of his career was spent in dealing with troubled situations from successful turnarounds to workouts and liquidations. In 1995 he co-founded Business Alliance Capital (BACC), which became one of the largest independent and nationwide asset-based lending and commercial finance companies. The BACC name became synonymous with a certain type of ABL. In 2005 BACC was sold to Sovereign Bank. Kompa then joined Executive Sounding Board as managing director, where he was responsible for practice development and providing strategic and tactical advice to clients that are in the process of a turnaround, refinancing, restructuring, or raising capital. He was widely respected for his knowledge in the commercial finance world and enjoyed a lifelong love of spending time at the beach with his children and grandchildren, golf, fishing, boating, oil painting and world traveling. A gifted athlete, Kompa excelled in basketball, football, tennis, and golf but it was his “hole in one” at Trenton Country Club that was his latest crowning achievement. All those who knew, loved and admired Kompa will forever miss his disarming smile, quick wit, charismatic style and love of family.

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BIOGRAPHIES

Monroe R. Lazere

Leonard Machlis

MONROE R. LAZERE was born in 1917 to immigrant parents from Odessa, he was the youngest of five children. His father Jacob, who had been an ironworker in Russia, founded a successful construction company in New York City. After graduating from Dewitt Clinton High School, Monroe attended Cornell University where he studied symbolic logic, a sub-discipline of mathematics which became the basis for computer science. Upon graduation from Cornell in 1938, he headed to Tucson, Arizona, where he taught high school math and also wrote song lyrics with composer Lew Spence, who later became part of the Great American Songbook. After serving in the Quartermasters Corps during World War II, he attended Columbia Law School. He graduated in 1943 and became an associate at Greenbaum, Wolff and Ernst, known for its literary clients and its freedom of speech and civil liberties cases. But Monroe grew restless with the practice of law. In 1951, he put together some financing from family and friends and founded Lazere Financial Corporation. Over the years, the business expanded into branches in Miami, Los Angeles and Chicago. In 1968, Ronald Press published Monroe’s book, Commercial Financing, the first textbook in the field. He used the book as part of the curriculum for a course on commercial finance at Cornell.

At the time he wrote the book, he was Chairman of the Board of the Commercial Finance Companies of New York. He later went on to become president and chairman of SFNet (formerly Commercial Finance Association) from 1975-1976. In the 1970s when the money center banks were scooping up commercial finance firms, Monroe sold his company to Connecticut Bank and Trust, which was then itself subsumed into Bank of New England. Monroe retired from Lazere Financial at age 75, but continued to be involved with the industry that he loved through expert witness testimony and articles for The Secured Lender. He died in 2011 at age 93. His beloved wife, Muriel, passed away in May of this year. They are survived by two children, Cathy and Eric (Maria), grandsons Brian (Kaitlin) and Keith (Jessica) and great-granddaughter, Anne.

Lazere Financial

SFNet Executive Director

LEN MACHLIS joined the Commercial Finance Association (now Secured Finance Network) in 1955, after serving in the U.S. Army. He was the Executive Director for 38 years, retiring in 2002. He and his wife, Harriet, raised three sons: Steve, Roger and Brian and had six grandchildren, Carly, Elana, Daniel, Marisa, Stephanie and Ally. After retiring, Len and Harriet moved from New Jersey to New York City and enjoyed all of the cultural events

NYC has to offer, especially the theater. If one person can make a difference, Len made that difference. Under his leadership and vision the CFA/SFNet grew from a small regional finance association into an international trade association representing the full gamut of financial institutions. He lived and breathed CFA/SFNet during his career and traveled the country unceasingly in furtherance of the association’s goals. Along the way, he touched the lives of so many of our members and staff. Len was one of a kind and is greatly missed. Past Chairman Steve Bakke recalled Len’s very first address as the association’s full-time leader. “His new official title at that time was ‘Secretary.’ I’m fortunate to have one of the few remaining original transcribed proceedings of that Twentieth Anniversary Convention at The Waldorf-Astoria in October of 1964. “For most of us, Len was the face of CFA for many years. In 1964, he was the new leader of what was then ‘NCFA’ and was introduced to the Convention by Chairman Eugene B. Hanson of Northern Finance Corp. Chairman Hanson described Len as NCFA’s new ‘rookie quarterback.’ Len’s address was a wonderfully upbeat look to the future. He spoke of expanding into Europe, developing education programs, fraud prevention, the expanding ‘Information Bulletin’ and plans for expanding NCFA’s publications. “And it’s easy to feel Len’s enthusiasm when describing the values of the annual convention, which he imagined as ‘an association on parade.’ His focus on the future of NCFA came through loud and clear in his concluding words, which was a quote from Thomas Huxley: “The rung of a ladder was never meant to rest upon, but only to hold a man’s foot long enough to enable him to put the other foot somewhat higher.” His leadership made SFNet what it is today. We were all honored to know and work with him. The industry is better because he was a part of it.”

THE SECURED LENDER OCTOBER 2019 47

BIOGRAPHIES

Hall of Fame Inductees

Robert A. Miller

Congress Financial Corporation BOB MILLER graduated from the Syracuse School of Management in 1952 and began his career in public accounting with S.D. Leidersdorf & Co. In 1959, he joined Congress Financial as an assistant controller and was instrumental in taking the company from a factor to a leading ABL platform. He rose through the ranks and, in 1986, assumed the role of president, which he held until his death in 1994. Congress was one of the original ABL finance companies. According to Mark Fagnani, Bob’s nominator for the Hall of Fame: “Congress invented and/or perfected all of the concepts that made our industry possible including the concept of cash dominion, the use of collateral field exams as a due diligence and monitoring tool, monitoring concepts like summary and concentration reports, reconciliations, verifications and trend cards to name just a few. Congress was also one of the first lenders to ever fund LBOs and MBOs and also one of the first to do participations (now co-lending) in order to be able to handle larger transactions. Bob was instrumental in putting all of that in place. He was also one of the very important figures in the Secured Finance Network (formerly Commercial Finance Association) and served as chairman. Bob knew the key executives at every finance company and later the bank-owned ABL lenders and furthered the organization’s goal of

David H. Pendley

First Capital/American Business Finance expanding membership and championing industry issues. Bob had fantastic analytical skills and great instincts and was able to determine what was a good deal and how to structure them. Under his leadership Congress grew exponentially to ultimately become one of the largest ABL lenders in the country with an unparalleled record of low loan losses and high profits.” Mark added: “Bob was a great mentor and encouraged every employee to learn, grow and to act independently. As a result, Congress-trained employees went on to become senior executives in every lender shop in the country, continuing Bob’s legacy. Under Bob’s leadership, Congress opened offices across the nation and ultimately had more than 10 offices covering every region in the U.S. including an office in Puerto Rico. Bob was universally admired, trusted and respected by his peers in the industry.”

DAVE PENDLEY was born and raised in Oklahoma City just three blocks from Catherine Ann Butler, the love of his life. After graduating from Northwest Classen High School, they were married on June 1, 1963. Dave began providing commercial business loans in 1965, founding three asset-based loan companies, the First Asset-Based Lending Group, First Capital

Corporation and American Business Finance, after working for 16 years for GE Capital. After selling his interest in his second start-up, First Capital, he founded American Business Finance to provide financial services to small commercial companies. Dave served on the Executive Committee of the Commercial Finance Association (now Secured Finance Network) for seven years and was its Chairman in 1993. Dave founded the CFA (now SFNet)/Wharton Institute of Secured Lending and played an important role in the founding of the SFNet Foundation. A few of the many fast-growing companies that Dave provided working capital loans to included: Dell Computers, Express Personnel, Snyder General Corporation, Aaron Rents, Southwest Factories, CMI, Farah Manufacturing, and the Telxon Corporation. A graduate of Washington University in St. Louis, the Stonier Graduate School of Banking and the Venture Capital Institute; he specialized in secured commercial lending, for more than 50 years. Dave was an Eagle Scout and was designated in 2016 as the Council’s Outstanding Eagle Scout and was the recipient of the Silver Beaver Award. He loved the outdoors and raised his children camping and hiking and took them to Philmont Scout Ranch as soon as they were old enough. Dave was a Master Gardener, spending his spare time in his beautiful gardens. He loved to travel and woke every morning and asked Catherine what adventure she would like to have that day. His legacy will live on in his children and grandchildren as they continue their passions for the wilderness, sporting and adventure. Dave was married to Catherine Butler for 55 years; father of Happy D. Pendley and Suzie Pendley (DIL); Joy L. Pendley and Mark Griffin (SIL) and Noel B. Pendley and Jennifer Pendley (DIL); grandfather, known as PawPaw, to Sarah, Chris, Brooke, Austin, Willa, Ansel, Isaac, Caleb, Micah, Abigail, Elaina, Kalvin, and Jonah.

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BIOGRAPHIES

Imre J Rosenthal

Jerry Sandak

James Talcott

IMRE J. ROSENTHAL was born in New York City on the Lower East Side in 1914. He attended New York University and in 1937 he passed the CPA exam. The following year, in 1938, Imre established Rosenthal & Rosenthal, Inc., now the largest privately held factor and finance company in the United States. His perspective on lending was fairly radical at the time. He chose to focus primarily on financing businesses that, for a variety of reasons, were not able to secure funding from big banks or more traditional lending institutions. Imre was open-minded, creative and always supportive. He was also extremely philanthropic. In honor of his sister Juliet who passed away when he was young, Imre established the Juliet Foundation, an organization that has supported countless charities and educational initiatives for decades. Imre passed away in 1996, but his business continues to thrive under the leadership of his children, grandchildren and others in the second and third generations of the Rosenthal family.

Jerry was a member and/or officer in various trade organizations such as: The Textile Veterans Association; The Turnaround Management Association; The Manhattan Decorum Credit Club; The 475 Esquire Toppers Credit Club; and Secured Finance Network, formerly Commercial Finance Association, the latter of which he served on the Executive Committee and chaired the Factoring Committee. In addition to his association activities, Jerry authored a number of articles on factoring (he was a contributor to the Chapter on factoring in the textbook “Asset Based Finance,” published by the Commercial Finance Association) and was a guest speaker on several finance panels. Jerry loved tennis and theater, and to travel with his wife Gee, visiting nearly every country and continent prior to his passing in 2013. His grandson, Josh Ceccarelli, is in his 17th year at Rosenthal, and was honored by SFNet in 2018.

guarantee the credit of the mill’s customers and to advance funds based on those guaranteed receivables. Over the years, the credit guarantee function became more and more important at the commission agency and, in 1914, Talcott moved to the American Woolen Building on Fourth Avenue. His principal activity became credit guarantees for the textile industry. Talcott’s ability to discern credit worth became legendary. In 1875, James was elected to the board of the Bank of Manhattan Company. An ardent Republican since the birth of the party, James was active in the New York political scene. After voting himself, he would visit the jails one by one, bailing out any Republicans who had challenged at the polls and locked up by corrupt Tammany Hall forces. He was floated as a candidate for mayor in 1890, but declined. Through five market panics and two depressions in the years from 1857 to 1907, James landed in better financial shape than before. Speculation was against his nature and he was fair in his dealings. In the depths of the panic of 1907, he arrived on Wall Street in a silk top hat and frock coat. He carried with him a long list of securities and a pencil. When the market went up, the 72-year-old’s fortunes were greatly increased. He passed away peacefully on August 21, 1916, surrounded by family and friends at the age of 86.

Rosenthal & Rosenthal

GERALD SANDAK, known fondly to many as Jerry, was born in Brooklyn in 1930. Prior to working at Rosenthal & Rosenthal, Inc. for more than 50 years (and in the finance and credit industry at large for 60 years), Jerry was a veteran who served in the U.S. Air Force. He was a very visible public figure in the commercial finance industry, leading Rosenthal’s factoring division for decades and ultimately serving as its senior executive vice president and chief risk officer.

Rosenthal & Rosenthal

JAMES TALCOTT, founder of James Talcott, Inc., was born in 1835 on a thousand-acre farm in West Hartford, CT. The company started as a selling agent for the Talcott family mill. The commission agency opened in a storefront in downtown Manhattan in 1854. Its function was to serve as a showroom, storehouse, shipping facility and sales office for the mill. The family was not happy with the credit of some of the companies the agency was selling to, so Mr. Talcott agreed that, for an additional fee, he would

James Talcott, Inc.

THE SECURED LENDER OCTOBER 2019 49

BIOGRAPHY

Hall of Fame Inductees

Terrence Ullrich

J.P. Morgan Business Credit Corp. TERRY ULLRICH was president of J.P. Morgan Business Credit Corp., the asset-based lending arm of JP Morgan Chase, and was considered one of the most prominent leaders of the secured lending industry. He was active in the ABL industry for over 30 years and served with Chase and its predeces-

sor banks for nearly 25 years. He was a strong leader of a well-respected group and he mentored many people who went on to be leaders in the industry. Terry was thoughtful, always willing to spend time with people and help them learn more about the craft. He was an active participant in the Secured Finance Network (formerly Commercial Finance Association), serving on the Executive Committee for many years and was a founding officer of the New York Chapter. Terry was a panelist and presenter at many ABL industry seminars, including the “Titans of Asset Based Lending” at an SFNet national conference. As chair of the Editorial Committee, Terry made significant contributions to the writing of the definitive book for the industry: Asset Based Finance – Proven Disciplines for Prudent Lending by Gregory F. Udell. He volunteered his time without hesitancy and was a

thoughtful and vocal participant. Terry was a devoted family man to his wife, Janet, and their three sons, one of whom pre-deceased Terry. After Jon’s passing, Terry put his leadership skills and contacts in the industry to work, founding the Friends of Jon Charitable Trust, a not-for-profit fundraising entity in support of children and adults with developmental disabilities. A true testament to someone making something positive out of a personal tragedy. For those of us who had the pleasure to know him, his personal and professional success noted above was not a surprise. Terry’s personality, intelligence and work ethic placed him on the path to professional success and his character, authenticity, integrity and warmth rounded out his human side.

SFNet will be honoring the Hall of Fame inductees at a reception on Nov. 12 at the Marriott Marquis in New York City. If you are interested in attending, please contact James Kravitz at jkravitz@sfnet.com.

Celebrating 75 Years of Putting Capital to Work

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www.SFNet.com

sfnet update FNet Adopts Principles of Fair Business Practices This summer, in recognition of the crucial role that secured finance plays in our economy, the need to maintain the highest professional and ethical standards for continued growth and prominence of our industry, and to sustainably and reliably deliver on our promise of putting capital to work, the Secured Finance Network Executive Committee, on behalf of its members adopted a set of Principles of Fair

PRINCIPLES OF FAIR BUSINESS PRACTICES

Business Practices. SFNet recognizes the diversity of our community and that different companies appropriately employ different and constantly evolving business practices depending on a variety of factors including product type, market served, business model and transaction complexity. These principles are meant to be embraced to ensure clarity, encourage best practices and promote integrity in the conduct of all facets of our members’ business interactions and transactions both internally and externally. ◗ To conduct business transactions with transparency with respect to the roles and responsibilities of all parties. ◗ To provide full disclosure in and clarity of transaction proposals and

documentation. ◗ To conduct business relationships with suppliers and customers in a fair and reasonable manner in accordance with the letter and spirit of applicable laws and regulations. ◗ To encourage, to the extent practical, that all parties to a business agreement (including members’ customers and suppliers) operate in a manner consistent with these Principles. ◗ To invest in the development of technical competencies and engage professional advisors where necessary or appropriate. ◗ To conduct business transactions and related activities with integrity and the highest ethical standards. ◗ To promote education and awareness of these Principles.

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THE SECURED LENDER OCTOBER 2019 51

The Challenges to and Strategies of Recalibration of the Asset Footprint Across International Platforms By Frank Morton and Rafael Klotz

With the increasing globalization of markets and operations, the location and ownership of assets — inventory, brands, and other assets — has become an integral component of supply chain management. Calibrating the international asset footprint for a company or its secured lender allows for the maximization of asset values and the identification of areas of risk, but it comes with significant challenges.

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Even a casual glance at the front page of most major financial publications spells the apparent doom of open markets and the inevitability of an impending global recession. Economic expansions do not last forever, of course, and what goes up must come down. We do not presume to know when, or how severe, the next downturn will be, but conventional wisdom suggests that it will eventually be upon us again. In fact, fears of an imminent recession were palpable at the time this piece was being finalized.i To paraphrase Mark Twain, though, reports of the demise of global trade have been greatly exaggerated. The value of global merchandise trade and trade in commercial services in 2018 grew by 55% since the depths of the global economic crisis in 2008.ii In fact, global trade has grown 333-fold since the World Trade Organization started gathering data in 1948 through 2018.iii This, despite the dawn of the nuclear age, global recessions, conflicts and wars, the rise of worldwide terrorism, and multiple challenges to open markets during this 70-year time period. Moreover, in today’s age, the ubiquitous presence of the internet and relatively easy access to information for an increasingly broad swath of the world’s population has had a profound, and perhaps irreversible, impact on the expansion of international trade, even in the face of growing protectionism and political trade barriers.iv As Børge Brende, president of the World Economic Forum, aptly stated in his opening remarks at the Annual Meeting of the Global Future Councils in Dubai last year: “Globalization’s future is no longer about physical trade. It is about knowledge, information and technology. Digital trade already accounts for 12% of international trade, and data flows are predicted to increase another fivefold by 2022. The result will inevitably be not less globalization but more, different, globalization.”v In the age of information, global trade may slow down or change, but it cannot be

stopped. Against this backdrop, many global businesses will continue to adapt and grow to meet the ebb and flow of global demand, while others, unable to manage the complexity of spreadout cross-border operations during uncertain times, will undoubtedly fail. The ones standing tall at the other end of the next downturn will probably be those companies that have mastered the art of skillfully managing their balance sheet and supply chain across disparate jurisdictions and cultures. The challenge for secured lenders, and a differentiating factor to borrowers in today’s harshly competitive asset-based lending environment, will be the capacity to provide increasing liquidity to growing or large-scale global operations in the face of economic uncertainty, differing legal enforcement environments, and most of all, widespread collateral locations. While some lenders’ existing international operations will naturally afford them a measure of competitive advantage under these circumstances, no lenders, even multinational ones, are immune to the perils of multi-jurisdictional ABL underwriting. So, what is a lender to do if one of its borrowers identifies a highly profitable opportunity to sell its goods or wares in far-flung locations from its main market, but lacks the capital to finance the production cycle from raw material to finished product delivered to its final destination? When it comes to pledging movable assets, inventory in particular, many developed and developing countries do not provide capital providers with the customary and time-tested predictability of, for example, the Uniform Commercial Code and Bankruptcy Code in the United States, the Insolvency Act in the United Kingdom, or the Personal Property Securities Act in Australia. While obtaining a local credit facility in some locations may be possible, there are virtually entire regions (e.g.: Latin America, Southern Europe), where lenders will provide little or

no availability against inventory and most intangibles. This is largely due to the complications and, in some cases, the sheer impossibility, of enforcing a security interest in those types of assets without actual possession at all times, which generally defeats the purpose of a working capital loan. On the flipside, a borrower may need to forego a potentially advantageous opportunity to expand its business outside of its and its lender’s main jurisdiction due to the detrimental effect it would suffer in its core territory if it redeploys resources to a location where it will not be capable of obtaining the financing to conduct business. Without the necessary working capital financing, most companies would need to access the capital markets and confront the unsavory prospect of diluting equity ownership, or, find a local partner that can provide the necessary local funding and infrastructure. The latter, while advantageous, is easier to conceptualize in theory than to implement in practice, and it depends on the context. For example, a company that sells consumer products under a recognized brand may benefit by contracting with a licensing partner with existing local operations and the ability to place finished products in the appropriate sales channels. On the other hand, manufacturing or technology companies may view they lack direct control of their operations as an insurmountable barrier to entry. And even those companies who can find local partners or are willing to take the plunge will need to navigate the unique tax and dividend-repatriation peculiarities of each country, and how they dovetail with their own tax strategies. When confronted with these circumstances, lenders have few choices. In certain narrow circumstances, some governments have agencies which promote the export of goods of services of local companies by providing guarantees to local lenders that are generally considered as safe as AAA-rated

THE SECURED LENDER OCTOBER 2019 53

government bonds (e.g.: EXIM Bank in the United States or EDC in Canada). The availability of these guarantees, however, is generally very limited and specific. There are often limitations based on the borrower’s size (EXIM Bank’s stated goal is to promote small and mid-size businesses). Furthermore, the application process can be very lengthy and approval uncertain, as EXIM Bank requires similar collateral enforcement assurances as any other secured lender would expect. Finally, these options often depend on political sentiment tides and are not permanent – EXIM Bank’s charter, for example, has been left to expire by Congress several times, which resulted in lengthy periods during which it was not operational, and is currently set to expire again on September 30, 2019.vi The alternative for secured lenders is to look at each country where the pledged assets are, or would be located, and engage in a case-by-case underwriting process for each of those jurisdictions. This requires a deep understanding of what is and is not possible under local commercial law and practice with respect to each individual asset class. The straightforward procedure in the United States of simply having to search one registry in the jurisdiction in which the borrower is organized for the existence of prior liens and, if the results are clear, then filing one ordinary all-asset UCC-1 financing statement to properly perfect its security interest, is a rare exception rather than the norm in most countries. The procedures and laws governing security interests are as diverse as there are countries, and the nuances relating to enforcement rights are equally germane to each separate jurisdiction (and some time they differ even within a country). Some countries, for instance, have very clear laws when it comes to taking a security interest in accounts receivable, while an enforceable consensual lien in inventory in that same country, even though embedded in its commercial laws, is practically

useless from a secured lender’s typical ABL underwriting criteria. The situation is sometimes the exact opposite in other countries, and somewhere in between in most other places. As a matter of fact, ABL underwriting is not unlike real estate: location, location, location. In many places where typical lending is not possible, a liquidity provider must implement alternative structures that resemble asset-based lending by providing enhanced protection under local laws which would not be available if the infusion of funds was structured as a loan (such as, for example, inventory consignments with cash dominion or sale and leasebacks). Even so, the lender still needs to be fully aware of any restrictions relating to payments to a foreign lender, or that affect the transfer of the proceeds of sale of collateral post-enforcement outside of the jurisdiction. Often, there are registration steps that must be taken on the front end and, even when capital flows to offshore entities is permissible, it is not uncommon to encounter tax withholding requirements. All of this doesn’t come without cost – in our experience, the price tag of many of these alternative structures is often prohibitive. An additional, but essential, element of underwriting risk for a secured loan is, of course, a reliable valuation of the pledged collateral. At first glance, secured lenders may find comfort in the fact that typical ABL valuation metrics such as NOLV (Net Orderly Liquidation Value) or FLV (Forced Liquidation Value) have, on the whole, identical definitions around the world. This, however, can be misleading without a further examination of what the practical meaning of an “orderly” or “forced” liquidation truly means in the relevant country. In some jurisdictions, an “orderly” liquidation in a court-supervised insolvency process may take two or more years in the ordinary course of that country’s judicial process. This is often the case in many jurisdictions,

where a speedy auction is simply not feasible under the prescribed rules that govern sales of collateral by lenders. The rule of thumb, therefore, is for the underwriter to fully appreciate the underlying premise of the valuation in the context of local practice. For example, in many civil law jurisdictions (mostly, but not solely, countries which operate under civil law systems), a lender cannot take the collateral in satisfaction of the debt without running an auction, and many jurisdictions have limitations on a secured lender’s credit bid rights. Other countries essentially curtail any options to enforce rights against nonpossessory collateral, such as retail inventory, or in the proceeds of sale of inventory which are not controlled by the lender. Furthermore, the party selected to undertake the valuation must have practical experience with disposition of the relevant assets in that specific jurisdiction, rather than a mere theoretical understanding of comparable sales and discount rates. The final factors that complete the underwriting equation, once the legal and value considerations have been solved, are pricing and the advance rate. These are intertwined terms (particularly in countries with liquidity shortages and high prevailing interest rates) and contingent on specific country risks and expected volatility, as one size does not fit all jurisdictions. The risk factors to be considered include political turmoil or violence, transfers, expropriation, inflation and currency exchange risks. Some of these factors can be mitigated through hedging and others with insurance, but all such strategies involve significant additional costs on top of high risk-adjusted pricing. These could ultimately make the loan unattractive to the borrower because of the combination of low advance rate and very high costs. A point worth emphasizing is the importance of understanding the art of the possible in a multi-jurisdictional workout in distress or bankruptcy.

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This adds further layers of complexity to the structuring of cross-border secured loans. The implementation of more uniform protocols which address cross-border cooperation and conflicts of laws issues, such as Chapter 15 of the Bankruptcy Code in the United States, EU Insolvency Regulation, or UNCITRAL’s Legislative Guide on Insolvency Law, have provided helpful guidance for lenders as they embark in cross-border lending. However, insolvency regimes are very dissimilar and many countries have not adopted laws that are in harmony with cross-border cooperation, especially when it comes to disposal of pledged collateral.vii The often-used strategy to restructure obligations through the sale of assets and business units is frequently hindered in cross-border workouts by the multiplicity of applicable laws (in many cases, not just commercial laws, but also labor, environmental, etc.). This topic warrants a separate followup piece, which the authors will address in an upcoming edition of TSL. To sum up, global expansion is a key growth factor for many companies, particularly those whose home market share has peaked. Oftentimes, the biggest impediment for companies to pursue new markets is lack of adequate working capital, as many assetbased lenders are not comfortable or capable to lend against assets located in countries in which they do not have operations, even for longstanding clients. While the prospect of providing liquidity in non-core jurisdictions may seem daunting after reading this article, the authors can attest from direct personal experience in over a dozen “non-traditional ABL” jurisdictions that it is feasible for certain assets classes in specific countries, with the appropriate local expert legal and tax advice, a trustworthy valuation, the right structure (including the exit strategy), properly risk-adjusted pricing, and a meticulously-modelled advance rate. Fundamentally, it is a tailor-made process which requires a deep practical understanding of how

to operate in each relevant jurisdiction within the established risk underwriting precepts of asset-based lending, sprinkled with some creative structuring dust. TSL

annual-meeting-of-the-global-futurecouncils-2018/sessions/openingplenary-cb9d6f83-df7a-426f-aeec3d461c16efcc vi

Frank Morton has over 25 years of experience in restructuring and disposition projects within the retail and commercial and industrial sectors. Morton has led several restructuring projects, including K’s Merchandise Mart, Linens ‘N Things, Sportsman’s Warehouse, G.I. Joe’s and Decathlon. He can be reached at fmorton@gordonbrothers.com. Rafael Klotz is involved in all aspects of Gordon Brothers’ international business, including deal structuring and execution, global expansion, and business development, and is leading the firm’s expansion into Latin America, where he oversees the Brazilian business. He can be reached at rklotz@gordonbrothers.com.

https://fas.org/sgp/crs/misc/IF10017.pdf

Earlier this year, the EU council passed a directive aimed at harmonizing the many insolvency laws across the union (Directive of the European Parliament and of the Council on preventive restructuring frameworks, second chance and measures to increase the efficiency of restructuring, insolvency and discharge procedures and amending Directive 2012/30/EU (2016/0359)), but it remains to be seen if this can be fully implemented in a way that makes insolvency laws across Europe truly uniform.

vii

e.g.: Germany Nears Recession and Chinese Factories Slow in Trade War Fallout, By Jack Ewing, The New York Times, August 14, 2019; Opinion: When the unthinkable happens: U.S.China trade negotiations break down for good, MarketWatch, August 12, 2019; Stocks slide after bond market warns again of recession, Associated Press, August 14, 2019, published in US Today; China and Germany fuel fears over global economy, Financial Times, August 14, 2019. i

From US$12.6T in 2008 to US$19.5T in 2019. World Trade Organization OMC Data (https://data.wto.org/). ii

iii

US$59B in 1948. Idem.

The Internet, Cross-Border Data Flows and International Trade, Joshua Meltzer, Fellow in Global Economy and Development at The Brookings Institution, February 2013 (https://www.brookings. edu/wp-content/uploads/2016/06/ internet-data-and-trade-meltzer.pdf).

https://www.weforum.org/events/

THE SECURED LENDER OCTOBER 2019 55

What Outsource Healthcare Lenders and Investors Can Learn from the Proton Therapy Experiment BY JETTE CAMPBELL A Carl Marks Advisors executive explains the five questions lenders and investors should consider when financing freestanding healthcare facilities.

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When a ProCure proton therapy center opened with fanfare in Oklahoma City to treat prostate cancer patients, it was seen as a milestone in the growing city’s downtown. Standing in front of the $120-million facility that was poised to treat 1,500 patients annually and employ 100 full-time staff, the center’s founder remarked, “from a medical perspective, it really puts Oklahoma City on the map.” Ten difficult years later, the facility has been sold in a bankruptcy auction, joining many other proton therapy centers that have gone through financial restructuring. Proton cancer treatment centers attracted financing and investment by promising to treat cancer with greater effectiveness and with fewer side effects. Despite outcomes like that of Oklahoma City, immense financial investments continue to be made in the construction of new therapy centers. This isn’t the only growing area within outsource care. Today there are over 8,000 urgent care establishments nationwide – double the number we had just a decade ago. As we look at the proliferations of freestanding healthcare facilities -- surgery centers, mental health clinics or emergency treatment centers, to name a few -- here are five questions lenders and investors should consider during diligence based on the failed proton therapy experiment. 1. How is the Reimbursement Model Changing? When standalone facilities are created without formal links to a hospital system, they have a number of challenges. The first is to build a patient base, which often requires luring patients from well-known medical centers. Established hospital and healthcare networks have an incentive to keep patients in their networks rather than referring them to independent providers, so it is essential that there is a strategic plan to build a referral and patient base in short order after the facility opens for business. Facilities also need to negotiate reimbursement contracts with payors. Independent facilities have few, and in the case of proton facilities just one, service to offer. This means they don’t represent significant business for an insurance company. And while you might be ready to make the leap to believing that the science underlying a

new treatment will be quickly accepted, insurance companies are not likely to share your appetite for risk. It may take a long time before payors are willing to cover a new treatment modality, and even when they do, they may choose initially to reimburse at a level that is not sustainable for the facility. 2. Is this Venture Capital or Project Finance? Like many of today’s outsourced services, proton treatment has historically been incorporated into holistic options for patients at large, academic medical centers. This means that, as a standalone enterprise, these facilities were start-ups, often with no pre-agreed, contractual revenue streams. They should have been treated as venture, not finance, opportunities. It’s easy to see why people may have misjudged this issue in diligence. This wasn’t an untested technology. In fact, proton therapy had seen success in treating some of the most challenging cancers. However, in the medical community, a treatment for Cancer Type A requires years of clinical trials before it can become a treatment for another type of cancer. Weighed down by the upfront investment, these facilities couldn’t stay afloat long enough to survive the trials and gain reimbursement support from payors. Like many new ventures, the technology improved. Today, many of the proton therapy centers being built are smaller and cost a small fraction of what was spent 5-10 years ago. With less debt and lower patient referral volume required, they can be successful. For those underwriting healthcare facility investments, it’s critical to understand where the business is in the cycle of cost and technology evolution. 3. What is the Structure? The legal and financial structure of healthcare service facilities is critical to the risk profile. Localized operating assets, centralized shared services, silent equity partners, physician/hospital partners and liability risk can all contribute to a complex legal and financial structure, which is what many of the pioneer proton treatment facilities implemented. This type of structure leverages shared services to gain efficiencies while creating entities that participate in ownership between the services entity and the operating center.

However, the layering of legal entities means moving cash from solvent operating centers to insolvent cost centers is challenging. As a result, many lenders were caught with less flexibility and security than they initially expected. To fully understand the financial structure, question who has priority on free cash flow and determine if the structure will allow for additional capital or debt if the need arises. 4. Is There Concentration Risk? A one-service offering places great pressure on the executive team to negotiate coverage and reimbursement rates. The risk is exacerbated by the selection of a partner that doesn’t bring a strong referral base that includes multiple hospital referral networks. You further multiply the risk if it is an independent standalone center, or even one affiliated with only one hospital system for referrals. You multiply it again if the facility is dependent upon a single provider. The selected equipment vendor is a constant presence at the facility, and once the equipment is installed, the maintenance and operating costs can be significant. In most cases, it is impossible to switch vendors, so leverage with suppliers is extremely limited. 5. What is the Market? Many proton therapy lenders made the mistake of focusing on the potential market rather than the actual patient market. Simultaneously, they seemingly ignored regional preferences in healthcare delivery and services, which, in turn, unraveled growth assumptions from Day 1. These dynamics are far from unique – lenders across the healthcare spectrum make decisions daily about how to assess the risks and opportunities in a business. For those evaluating healthcare facility assets, it is critical that you focus on how the established revenue level will work in a particular market, and underwrite a loan or investment based on that level of risk. TSL Jette Campbell is a partner at Carl Marks Advisors, a leading investment bank advising healthcare lenders, investors, entrepreneurs and facility owners. He can be reached at jcampbell@carlmarks.com.

THE SECURED LENDER OCTOBER 2019 57

David Grende The TSL Interview

SFNet’s Immediate Past President

BY MICHELE OCEJO David Grende is president and CEO of Siena Lending Group LLC. He served as SFNet’s president for the 2019 fiscal year. David is a specialized lending executive with more than 30 years experience building and running asset-based lending businesses, executing debt restructurings, taking on interim management roles, and completing complex asset workouts and recoveries.

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185 employees. David earned a bachelor of science in economics from City College of New York and became a Certified Insolvency & Restructuring Advisor (CIRA) in 2004.

David Grende President & CEO Siena Lending Group LLC Prior to co-founding Siena, David was CEO of Burdale Capital Finance (BCF), a wholly owned asset-based lending subsidiary of Bank of Ireland, which provided transatlantic financing solutions to a $1.7 billion portfolio of clients. In 2006, David was hired to start BCF as a de novo ABL U.S. business and built it into a widely recognized brand. BCF was sold to Wells Fargo in 2012 as part of the bank’s deleveraging, necessitated by the IMF’s bailout of Ireland in 2010. Before starting BCF, David was a managing director in the Corporate Advisory Services practice at Huron Consulting Group, where he led a Huron team in successfully launching Delta Air Lines, Inc. into a seamless bankruptcy proceeding, and also managed restructuring teams at ATA Airlines and Air Jamaica. In addition, David served in an interim management role for Comdisco Ventures. He successfully managed the runoff of a $1.5 billion lease, subordinated loan and private equity venture capital portfolio, where his team exceeded the business plan he created from both return and timeline perspectives. David started his career at the CIT Group/Credit Finance, where he was promoted six times—finally becoming EVP/COO in charge of three regions and

It has been an exciting year for the organization. CFA transitioned to SFNet, our new website debuted, and the SFNet Foundation commissioned the first Market Impact & Sizing Study of our industry. Please tell readers a little bit about how all this affects the SFNet community. I think this all goes to the heart of having a value proposition that is embraced by all of our constituent members. It also acts as a driver for widening our member community to be inclusive of other organizations besides just banks and finance companies. The great strides that we’ve made in data gathering and data dissemination, the progress that we’ve made as far as improving the educational content offering and how we deliver it, the coordination with our chapters, the creation of the 40 Under 40 Awards and YoPro events, the success of the Women in Secured Finance Committee, our impactful advocacy efforts; these all speak to our focus on the value proposition. At the end of the day, member engagement is up significantly, and I think that is the greatest indicator of how our community is responding to these enhancements. What would you say surprised you during your tenure as president, if anything? What surprised me and what continues to inspire me is the excitement around being part of this newly reenergized organization. You can feel it both at the grass roots level as well as the executive level. It’s really a great feeling.

Sizing & Impact Study was certainly significant. The behind-the-scenes work that was done to achieve a seamless transition to SFNet really made me proud. Also, every executive committee meeting that I’ve attended for the past couple of years has been filled with excitement, enthusiasm and meaningful discussion between all the participants. Everyone is truly engaged and truly working towards a common goal of making this a community of constituents that really want to work with each other. Any advice for incoming president John DePledge? Number one, John’s timing is impeccable and I’m kind of jealous, because he’ll be presiding over the 75th anniversary celebration of the organization at the annual in New York. And he’s kicking off the year under the rebranded name, and celebrating our 75th year by honoring over 40 great leaders who will be inducted into the Secured Finance Network Hall of Fame. My advice is that he enjoy the moment and, looking ahead, continue to embrace the results of the new governance structure that has allowed the Executive Committee to guide and redirect the organization when necessary. We plan on adding a Chief Value Officer by the beginning of the fiscal year to the staff. So my advice would be to continue to focus on the value proposition and also work with the CVO to expand the membership rolls, which I think will bode well for the future. TSL Michele Ocejo is director of communications for Secured Finance Network and editor-inchief of The Secured Lender.

Is there anything, other than the rebranding, of which you are particularly proud or you think was a special moment during the past year? There were a lot of special moments in the past year. The release of the Market

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Interview with Bruce Sprenger: Former SFNet Chairman Retires from Fifth Third after 40 Years in the Industry BY MICHELE OCEJO Bruce Sprenger retired from his position as SVP Group Head for Fifth Third Business Capital at the end of June, after 40 years in the industry. At Fifth Third he was responsible for developing new markets, marketing activities of the ABL group and advising on customer cross-border opportunities. From 2008 until the merger with Fifth Third in 2019, Sprenger was group senior vice president, region manager for Cole Taylor Business Capital and then Group President for MB Business Capital. Prior to that, Sprenger was with LaSalle Business Credit, where he opened a de novo regional office and several satellite offices and went on to manage LaSalle’s central US region. He later launched LaSalle’s European cross-border product and global ABL connectivity with ABN AMRO. He was also responsible for all North American non-credit product cross-sell initiatives and managed the unit’s marketing, sales, communication and branding activities. Prior to his tenure at LaSalle, Sprenger served as President of Firstar Financial Services, the asset-based group for Firstar Corporation.

Sprenger is a past Chairman of the Secured Finance Network, formerly Commercial Finance Association. Sprenger has provided training on asset-based financing principles both in China and Mexico on behalf of SFNet. Sprenger holds a B.S. in Finance from Valparaiso University and completed the Wharton School Institute Executive Program. He has continued his education in marketing at Northwestern University’s J. L. Kellogg Graduate School of Management.

Bruce Sprenger

After 40 years in the industry, you retired at the end of June. What are some of the highlights of your career or the accomplishments of which you are most proud? There are two things that stand out as special in my time in ABL. First, I was fortunate to cross paths with many talented people who, over the years, provided me a lens through which I could watch their success

blossom. Many personal friendships grew from these connections. Some of these paths crossed more than once as my career evolved through the different organizations I served. The thrill was to see these folks mature in their ABL craft along with caring for clients and their needs. Secondly, having the opportunity to participate in several “start-ups” in the industry and the trust that leaders of these organizations placed in me to lead a successful new entry to the market is something of which I am proud to have accomplished. The two notable events all occurred as a result of changes in control of my then-current organization. Starting up a new region for LaSalle with a team (and many are still part of our team 10 years later (at MB-5/3) And, of course, thanks to Mike Sharkey for giving me the opportunity and supporting our efforts there. Seventeen states later, and a successful cross-border ABL offering in

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Europe, was exciting and a lot of fun. The next start-up opportunity for a true de-novo came 10 years later as we started anew at Cole Taylor, which later became MB. Once again partnering with Mike Sharkey, we were fortunate in a successful growth of 15 offices in the U.S. and Canada to over a billion in loans until the recent merger with Fifth Third. Do any deals truly stand out in your mind as being memorable? There are so many to pick from as many were unique and had the success and satisfaction of a solution. One in particular was an Iowa-based trucking company that I was fortunate to serve on multiple occasions while working for several banks. The company and industry went through significant changes over the years. We were successful almost 20 years ago in crafting a solution to give the company time to adjust and resume its growth and success. Trusting that management would get the job done has paid off. Today, they are the leader and at the top of the game in transportation services. The company today is a significant deposit customer, our line is reserved for a rainy day expansion and yes, they still appreciate the ABL discipline today. This example takes me back to the simple basics of caring for clients and their needs. For me, that has been a critical aspect of success in our industry. The right solution for the client may not be the most profitable for the bank. I venture to say sometimes restraining from lending more, always relaxing covenants when they are tested, may not be truly caring for the client. It’s okay to be honest and explain what we can do to assist, not just offer what the client thinks they need. After a 40-year career, obviously you witnessed a lot of changes, but I am wondering what has stayed the same about the way ABL deals are done? That is an interesting question. Over the years, the term “ABL” has had many faces. The view of an ABL broadened for some and, more recently, has in some ways returned to its roots. The industry evolved from non-bank, privately held players

decades ago to banks seeking an offering they would call ABL. Cash-flow, structured finance, hybrid, split-lien, springing covenants, covenant lite are just a few of the aspects of the products that some asset-based lenders have offered as part of their suite of ABL “products”. Many of the bank players found themselves looking for incremental growth and branched out from traditional, fully margined, controlled ABL structures of both term and revolving facilities. Bank regulation has also played a significant role in the product and regulations regarding, for example KYC, for most institutions. We all know the aftershocks resulting from Dodd-Frank and how that has changed our industry. There is a segment of the ABL industry that has remained relativity unchanged; the offering that fully margins the collateral based on experience or third-party evaluation, controls the cash cycle through dominion of funds and double-sided posting, and is rigorous in staying in touch with monitoring the collateral, client and lender portfolio. Tried and true through many cycles, this product approach has well survived the challenge of time. We have recently seen new entrants to our industry, some non-bank-owned firms that have returned to these disciplined approaches as a viable market opportunity. What advice would you offer to someone in middle management who is hoping to move to the next level in his/her career? Fostering personal relationships, both inside and outside of your organization, is key to career advancement. Those personal relationships will build trust over time. Folks want leadership led by trust. Trade and professional associations/groups, like SFNet, are great places to broaden your network while serving your industry. Invest in yourself and your brand. I have been fortunate to have the support to participate in continuing education and learning, throughout my career. Better yet, get involved in teaching others as part of your brand. Your personal brand is a key recognition and influencer in the market and industry. Guard it and invest in it.

You served for many years on the SFNet Executive Committee and Management Committee and, ultimately, as chairman. What effect did yourSFNet involvement have on your career and what would you say to young professionals today wondering if they should deepen their engagement in the association? It is imperative to maintain that connection between your career and SFNet. Get involved and serve at the local chapter level and it will pay dividends, ten-fold. For me, my career and SFNet have been intertwined. Sure, we have LinkedIn and such social media tools today, that were not around early during my career. These can assist in networking, but personal relationships build trust. As an aside, when I took over as president of SFNet, I spent a lot of time in New York at the headquarters while we searched for a new CEO. That time was not only rewarding in interaction with the staff, but also gave me a chance to experience a part of the market geography that I had yet to experience from the Midwest. How do you plan to enjoy your retirement? Well, we haven’t fully mapped that highway as yet. My last day was spent with a teammate at a prospect, trying to help win yet another deal. I will miss that “chase” the most along with the people I have been fortunate to work alongside. I do plan on taking advantage of the summer and will work on my pathetic golf game and, as many know, I’ll make time for some long overdue fishing. A little time to reflect on the next chapter will be welcomed. I’m confident and looking forward to writing these new chapters! TSL Michele Ocejo is director of communications for the Secured Finance Network and editorin-chief of The Secured Lender.

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Andrea Interview with

Beirne KPMG LLP

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As a partner in KPMG’s Lender Due Diligence group, Andrea Beirne provides due diligence assistance and structured finance consulting services to clients in the financial services industry. She has over 25 years of experience, including more than 17 years with KPMG, and nine years with Arthur Andersen LLP’s Transaction Advisory and Assurance Practices. Beirne has 18 years of financial due diligence experience which includes analyzing and modeling structured finance transactions, evaluating asset-based, asset-backed, and cash-flow debt structures, and assisting acquirers in financial, cost saving and synergy analysis. She has diverse, practical experience in manufacturing, distribution, retail and service segments. From a cross-border perspective, Beirne has extensive experience with structuring deals with international components. In addition to providing due diligence consulting services, she has extensive experience with Regulation AB attest engagements, and other asset-backed securities transaction-related agreed-upon procedures.

BY MICHELE OCEJO

Andrea Beirne KPMG LLP Beirne has worked with clients across the financial services sector, including commercial banks and finance companies, hedge funds, assetbacked securities issuers, primary and master servicers, and trustee organizations. In addition, she has five years of experience providing financial statement audit services while at Arthur Andersen. Her audit experience was primarily related to SEC audit clients as well as audits of privately held companies, hedge funds and broker dealers. Beirne is a member of the AICPA and the Illinois CPA Society. In addition, she serves on the Advisory Board of the Secured Finance Network Foundation.

Please tell us how you got into this industry and a bit about your career path. I have always had a passion for client service. I started my career at Arthur Andersen in audit. After four years in audit specializing in the financial statement audits of SEC registered clients, I was part of a fraud investigation engagement and decided it was time to leave audit to work in consulting. I wanted to widen my purview of different industries and types of

engagements but also to get closer to clients and assist them with their goals. Since I still enjoyed working with financial institutions, I decided to join the Transaction Services practice, where we performed buy-side and finance-side diligence for private equity and financial institutions. My first clients were Heller Financial and Bankers Trust. In 2002, we moved over from Arthur Andersen to KPMG LLP. Since 2010, I have been at partner a KPMG and today I am the national lead partner for the Lender Due Diligence group. In 2003, we performed one of our first cross-border deals for CIT. In 2003, cross-border deals were still very new and the industry was just figuring out where the risks were associated with lending on assets in the different jurisdictions, which was really exciting. We have built a team of professionals that understand risks associated with different jurisdictions and have performed diligence on deals in almost every industry from manufacturing and distribution to retail, healthcare, pipeline, staffing, online, fintech and service companies. I appreciate KPMG’s collaborative environment, which is an incredible resource for my team. If we don’t know a specific answer to a question about an industry, more often than not, we can find someone within KPMG’s global network who can assist us. When new accounting pronouncements come out like revenue recognition, lease accounts and the 2017 tax laws, we always have a bench that we can go to for our clients to assist them with understanding risk. Being a trusted business advisor is the reason why I have stayed at KPMG and I have continued on this career path for over 25 years. Building relationships is the key to happiness for me and I have been given the gift of working with an unbelievably supportive group of people at KPMG that share the same values. The fact that we make a difference

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continues to keep us motivated to do our best. From a personal perspective, I got married in 2000. My son was born in 2005 and daughter in 2007. My family, along with my career, are the joys of my life. It is the whole package. They understand how important my career is to me and I would not have been able to achieve what I have professionally without them. The support of both my family and KPMG have helped me accomplish my personal and professional goals. From your viewpoint, on the deal advisory side, what would you want to communicate to lenders that could help deals go more smoothly? Reporting for the borrower has to get easier or we are going to see companies continuing to opt for cash flow-structures instead of asset-based. With competition for deals continuing to increase, the structures are getting more complicated to calculate, especially for cross-border deals. This leads to borrower fatigue with ongoing reporting. In addition, risks have changed dramatically for lenders, but we have not changed the way we diligence, appraise, perform the legal review, underwrite or monitor credits. We need to change the way we approach asset-based deals. Lenders and all professionals should think outside of the box and consider how we can implement artificial intelligence and automation tools within the process. I’ve noticed that private equity firms and borrowers are already looking for the process to be touched by less people through the use of automation. We have the data; now we have to be smart about how we use it. You have experience in cross-border deals. What is your outlook for crossborder lending? Do you see any particular challenges lenders need to look out for? And opportunities as well. There are many areas facing economic challenges and political unrest and the ways these issues unfold may

change the balance sheets for deals in the future. Private equity firms are continuing to buy and add companies with global footprints to their portfolio. I think we will continue to see cross-border deals, but if we are headed into recessionary times in 2020 or 2021, lenders should take a risk-based approach and have the data at their fingertips to manage the risk associated with different companies, industry sectors and countries. However, from an infrastructure perspective, companies will need to invest in infrastructure, systems and technology to be able to manage these global companies. What industries are seeing the most volatility in and why? The most volatile industries right now are retail, healthcare (which relies on Medicare and Medicaid payments) and companies that rely heavily on buying inventory from specific areas with geopolitical challenges. The risks are not the same risks we saw in 2007-2009; they are more complicated like tariffs, tax changes, regulatory changes and the power of consumer influence. Asset-based lenders are working on more deals in niche industries, which has its own risk. Service companies, finance companies, online companies are all more complicated to diligence and underwrite the typical middlemarket manufacturing company of the past. Legal review is becoming more important and we’ve seen contract reviews become the most important part of the underwriting process for many deals.

not as great as they were pre-2008. I believe that management of the credits underwritten in the last five years are going to need more monitoring than the pre-2008 credits and banks will need to make sure that they are working on having that data at their fingertips today and have professionals who managed credits during 2007, 2008 and 2009 so their expertise can be leveraged if we end up in recessionary times. TSL Michele Ocejo is director of communications for the Secured Finance Network and editorin-chief of The Secured Lender.

Some or all of the services described herein may not be permissible for KPMG audit clients and their affiliates or related entities. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. © 2019 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. [Printed in the US]. The KPMG name and logo are registered trademarks or trademarks of KPMG International.

You were a part of the Committee responsible for the SFNet Foundation Market Sizing & Impact Study. Did you find any of the results of the survey surprising? Respondents agree that underwriting standards and credit documentation is weaker than in 2008; however, respondents said that today’s risks are

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YEARS OF PUTTING CAPITAL TO WORK

75th Annual Convention NOVEMBER 13â&#x20AC;&#x201C;15, 2019 MARRIOT T MARQUIS NEW YORK CIT Y

75TH ANNUAL CONVENTION EXHIBITOR GUIDE 2019

SFNET 75TH ANNUAL CONVENTION EXHIBIT GUIDE 2019

3i Infotech Inc. (22)

ABLSoft, Inc. (22)

Accounts Receivable Insurance (13)

Alter Domus (28)

Artis Trade Systems (22)

aVeriFact, LLC (21)

Bluechip Asset Management (2)

CapitalPlus Construction Services, LLC (26)

Capstone Headwaters (27)

CNH Finance (24)

CODIX (22)

38, 39

Commercial Finance Consultants (28)

CSC (21)

Cync Software (22)

DAT (21)

Decipher (22)

Equiniti Riskfactor (22)

Finvoice (22)

Fleet Evaluator (9)

Freed Maxick ABL Services, LLC (10)

HPD Software, LLC (22)

International Factoring Association (IFA) (28)

Park National Bank (4)

Rapid Finance (8)

RelPro (22)

EXHIBIT HALL FLOOR PLAN

Rosen Systems (2)

SG Credit Partners (17)

Thomson Reuters (22)

UCCPlus Insurance (13)

William Stucky & Associates, Inc. (22)

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

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EXHIBITOR LISTINGS

3i Infotech Inc. (22), Booth # 17 Ramani Rajagopalan, DVP - Banking Solutions, Americas 450 Raritan Center Parkway, Suite B, Edison, NJ 08837 Phone: 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.

ABLSoft, Inc. (22), Booth #32 Nancy Lee, CEO 840 Hinckley Rd., Suite 127, Burlingame, CA 94010 Phone: 866-632-7146 E-mail: nlee@ablsoft.com www.ablsoft.com

ABLSoft helps asset-based lenders and factors maximize efficiency and grow profitably with intelligent automation. RadarOne, our Cloud lending platform, continues to pioneer and simplify loan and invoice management. From seamless BBC processing, to tailored covenants, to one-click reporting - our mission is to help lenders grow with confidence.

Accounts Receivable Insurance (ARI), Booth #18 Parker Freedman, President 1311 N Westshore Blvd., Tampa, FL 33607 Phone: 813-288-8680 Email: parker@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.

Alter Domus (28), Booth #27 David Traverso, Director 1460 Broadway, Suite 5006, New York, NY 10036 Phone: 917-983-2807 Email: david.traverso@cortlandglobal.com Ellen Cook, Director 1289 City Center Dr., Suite 100, Carmel, IN 46032 Phone: 312-767-9040 Email: ellen.cook@cortlandglobal.com www.cortlandglobal.com

An increasing number of top asset managers, lenders and family offices around the globe choose Alter Domus as their partner of choice. With an international network of 40 offices and desks around the world, our 2,200 employees apply their expertise to put you ahead of the game and let you stay focused on your core activities. We offer you a comprehensive range of services spanning fund administration, corporate services, agency services, CLO collateral administration, credit and structured product services, depositary services, transfer pricing, wealth administration, domiciliation, and management company services, thus providing you an easier, faster and more streamlined process.

Artis Trade Systems (22), Booth #24 Jamie Clemons, Co-Founder 4530 E. Shea Blvd., Phoenix, AZ 85028 Phone: 480-250-8186 Email: jamie.clemons@artistrade.net www.artistrade.net

Artis Trade Systems is a technology company that provides ArtisPay, their proprietary Supply Chain Finance (SCF) platform, a fully cloud-based SaaS offering.

aVeriFact, LLC (21), Booth #8 Sandra Lovett-Tillman & Sheri LeGeaux, Managing Directors/Co-Owners 1402 S. Magnolia St., Suite M, Hammond, LA 70403 Phone: 800-468-5818 ext. 102 & 101 Email: slovett@averifact.com & slegeuax@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: Pre-Lending/ 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 WWW.SFNET.COM I 67

SFNET 75TH ANNUAL CONVENTION EXHIBIT GUIDE 2019 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.

Bluechip Asset Management (2), Booth #9 Christopher Nugent, Managing Director 10810 Red Sun Ct., Highlands Ranch, CO 80126 Phone: 415-515-1110 Email: chris.nugent@bcamasset.com www.bcamasset.com

BCAMâ&#x20AC;&#x2122;s asset valuation professionals have extensive experience in a wide variety of industries to provide valuation solutions for machinery and equipment. Field inspections and complete USPAP compliant appraisals for loan collateral analysis, equipment financing and leasing, and litigation, in construction, transportation, energy, manufacturing, solar, healthcare, mining, and other markets.

CapitalPlus Construction Services, LLC (26), Booth #7 Scott W. Applegate, President 2510 Solway Road, Knoxville, TN 37931 Phone: 865-670-2345 Email: applegate@capitalplus.com www.capitalplus.com Established in 1998, CapitalPlus Construction Services is a leading provider of accounts receivable financing for construction companies, general contractors, subcontractors, and disaster recovery providers of all sizes and types. CapitalPlus also provides a full suite of back office services including bookkeeping, lien rights compliance, risk management and contract compliance services.

Capstone Headwaters (27), Booth #34 Brian P. Jacobson, Director 176 Federal Street, Boston, MA 02110 Phone: 617-619-3376 Email: bjacobson@capstoneheadwaters.com www.capstoneheadwaters.com

Capstone Headwaters has earned the reputation as a trusted advisor to leading middle market companies. We provide expert investment banking & financial advisory services to owners, investors, and creditors of privately held businesses. For more than 15 years, we have delivered award-winning results.

CNH Finance (24), Booth #37 Melinda Ficek, Director 3334 E. Coast Hwy, Suite 541, Newport Beach, CA 92625 Phone: 714-520-1788 Email: mficek@cnhfinance.com www.cnhfinance.com

CNH Finance, a leader in asset-based specialty healthcare finance provides ($1,000,000-$40,000,000) working capital to healthcare providers and commercial and industrial business owners. CNH provides revolving LOC secured by accounts receivables, inventory and term on equipment, providing growth, restructuring, consolidation and turnaround capital. CNH gives healthcare providers and business owners the liquidity and access to working capital resources, which in some cases cannot be found through traditional lending channels.

CODIX (22), Booth #38 & 39 Billy Quinn, Managing Director 1230 Peachtree St. NE, Suite 1900 PMB 208, Atlanta, GA 30309 Phone: 404-790-0998 Email: 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 event-based 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 (28), Booth #40 David Rains, President 2500 Discovery Blvd., Suite 300, Rockwall, TX 75032 Phone: 469-402-4000 Email: dar@searchcf.com www.searchcf.com

Commercial Finance Consultants seeks to form long term 68

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relationships with Asset Based Lending and Factoring companies with the goal of providing our clients with the best available human capital and most current industry information to assist in accomplishing their growth potential. Established in 2002 by David Rains, CFC has placed over 14% of the personnel in the ABL and factoring industry across North America. Our goal is to help your company accomplish your objectives. Our goal for our candidates is to effect positive change in their careers. We believe that long term relationships are better than short term gain. CFC is a long-time sponsor of SFNet and enjoys the status of the only executive placement agency with the designation of “Endorsed Vendor” with the IFA.

CSC, Booth #19 Melissa Davis, Event Manager 251 Little Falls Dr., Wilmington, DE 19808 Phone: 800-927-9800 Email: melissa.davis@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 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. R

Cync Software (22), Booth #16 Lydia Taylor, Director of Sales 3505 E. Frontage Rd., Suite 160, Tampa, FL 33607 Phone: 727-538-2250 ext. 311 Email: ltaylor@cyncsoftware.com www.cyncsoftware.com

Cync Software, a brand of NDS Systems, is a cloud-based loan monitoring application for asset-based lenders that focuses on automation, cost reduction and mitigating risk. The Cync Software suite provides a collection of software financing solutions that covers a range of accounts receivable financing, factoring, working capital loans, asset-based lending and related credit services. Cync provides a complete solution for commercial finance companies, banks, and factors to track and monitor all aspects of their commercial portfolios from approval to reporting. Our dedicated team of professionals are 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 users.

DAT (21), Booth #10 Jenell Tripp, Director Audits 8405 SW Nimbus Ave., Beaverton, OR 97008 Phone: 800-551-8847 Email: jenell.tripp@dat.com www.dat.com

For 40 years, DAT has been providing software solutions to the transportation industry. Fortune 500 banks, financial institutions, legal advisers, and businesses that need to transfer or refinance transportation assets use our services, including Wells Fargo, US Bank, Hitachi, Citi, Bryan Cave, PNC and more.

Decipher (22), Booth #1 Paula Claro, Director of Marketing 10411 Motor City Dr., Suite 750, Bethesda, MD 20817 Phone: 301-798-9778 Email: paula@deciphercredit.com www.deciphercredit.com

Decipher transforms traditional lending by automating loan origination and underwriting. Our clients gain a competitive advantage using Decipher cloud-based technology to originate more loans, apply their lending risk criteria, detect fraud and increase compliance, and speed up loan closing. Close deals faster by automating every step of the underwriting process from start to funding, including credit and background search results, lien search and file, financial spreading, and loan closing documentation with the latest digital tools. Elevate the customer experience by using our smart white-label all digital applications that connect to accounting systems and bank accounts for data extraction and allow business owners to easily and safely transmit all required information from any device and in any format. Our platform was designed by lenders who are uniquely aware of the underwriting and credit risk challenges ABL lenders face each day. Visit the most innovative lending technology at Booth 1.

Equiniti Riskfactor (22), Booth #33 Melissa Havers, Marketing Manager Phone: +44 (0) 1444 819 460 Email: melissa.havers@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 WWW.SFNET.COM I 69

SFNET 75TH ANNUAL CONVENTION EXHIBIT GUIDE 2019 high risk accounts. At the same time it delivers operational efficiencies and 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.

Finvoice (22), Booth #29 Andrew Bertolina, Chief Executive Officer Nicholas Montalto, Associate 1225 Fulton St., San Francisco, CA 94117 Phone: 310-951-0596 Email: andrew@getfinvoice.com; nicholasmontalto@finvoice.com www.getfinvoice.com

Finvoice enables traditional lenders to transform into a fintech lender within 30 days. The company modernizes factors & asset-based lenders by allowing them to (1) originate in 5 clicks: increasing conversion by 35%, (2) underwrite through 30+ data APIs, (3) grow a portfolio without growing headcount. Finvoice is a San Francisco based company with executives from Princeton and Cambridge and backing from leading technology incumbents.

Fleet Evaluator (9), Booth #36 Lindsay Kant, Event Coordinator 120 West Harvest Drive, Lincoln, NE 68521 Phone: 402-458-4557 Email: lindsay-kant@sandhills.com www.sandhills.com

Fleet Evaluator is a powerful asset valuation tool backed by the most expansive and accurate data in the industries it serves. The software weighs data against key market considerations and health of the market indicators to deliver accurate asset valuators reflective of market values.

Freed Maxick ABL Services, LLC (10), Booth #23 Mike Boeheim, Director 424 Main Street, Suite 800, Buffalo, NY 14201 Phone: 716-847-2651 Email: mike.boeheim@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 70

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due diligence. Our service is designed to help supplement your department with high level expertise and manpower on shortterm 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.

HPD Software, LLC (22), Booth #31 Lisa Roberts, U.S. Regional Sales Director 735 Tank Farm Rd., San Luis Obispo, CA 93401 Phone: 574-233-4593 Email: lisa.roberts@hpdlendscape.com www.hpdlendscape.com

HPD LendScape enables companies of any size to deliver branded, customized, working capital solutions that grow with their business and can be easily accessed by desktop and mobile devices. For over 40 years HPD LendScape has been the market leader for commercial finance providers, helping them deliver better working capital finance solutions creating a superior experience for their clients worldwide. Banks and finance providers in more than 50 countries trust our invoice finance and data gathering solutions to manage over 80,000 businesses and process billions of receivables worldwide. Headquartered in the UK, with offices in the USA and Australia, our clients include ABN AMRO, PNC Business Credit, Societe Generale, Nordea Finance, Deutsche Bank, Lloyds Banking Group, Bibby Commercial Finance and many smaller lending companies.

International Factoring Association (IFA) (28), Booth #21 Bert Goldberg, Executive Director 6627 Bay Laurel Place, Suite C, Avila Beach, CA 93424 Phone: 805-773-0011 Email: 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 5000 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.

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Park National Bank (4), Booth #25 Jack Arthur, AVP 140 East Town Street, Columbus, OH 43215 Phone: 614-372-6441 Email: jarthur@parknationalbank.com www.parknationalbank.com

Park National Bank was founded in 1908 with headquarters in Newark Ohio. Park National has an asset-based lending group that serves customers nationwide with a focus on consumer finance companies and health-care A/R financing.

Rapid Finance (8), Booth #35 TJ Sitzler, Business Development 4500 East West Highway, 6th Floor, Bethesda, MD 20814 Phone: 240-380-1656 Email: tsitzler@rapidfinance.com www.rapidfinance.com

Rapid Finance is committed to success: success for our clients, success for our team members and success for our company. We are a place where everyone’s voice is heard and where communication flows across all levels of the company from the employees to the executives. Our culture is built on a highly energetic team of people who are dedicated to entrepreneurialism. This model gives people a chance to make bigger, earlier and more frequent contributions than would be the case in many companies. This is an integral part of our belief that how we work together and develop as people and as an organization is as important as we produce. Our entrepreneurial spirit infuses everything we do. We aspire to make a difference and succeed because we are different. We bring a customized approach, a fresh insight, an uncommon passion to the world of business lending. This internal culture directly correlates to how we interact, support and serve our clients. Small business owners embody the entrepreneurial spirit, and so do we. We serve America’s small businesses, helping them grow and positively impact the communities they serve.

RelPro (22), Booth #2 Chris Keneally, Senior Account Executive 21 West 38th Street, 5th Floor, New York, NY 10018 Phone: 908-425-8336 Email: ckeneally@relpro.com www.relpro.com

Accelerate your SMB business development and relationship management initiatives with RelPro’s database and analytics covering 7 million companies and their executive decisionmakers. Find and qualify new prospects (with contact details & UCC filings), automate pre-call research, plan road trips and keep up-to-date with clients and prospects through RelPro Alerts. RelPro integrates with your CRM and other frequentlyused websites, and saves your precious time.

Rosen Systems (2), Booth #30 Kyle Rosen, Vice President Rachel Rosen, Director of Business Development 2323 Langford St., Dallas, TX 75208 Phone: 972-248-2266 Email: kyle@rosensystems.com info@rosensystems.com www.rosensystems.com

Rosen Systems – Industrial Auctioneers & Appraisers since 1917.

SG Credit Partners (17), Booth #26 Charlie Perer, Head of Originations 1541 Ocean Ave., Suite 200, Santa Monica, CA 90401 Phone: 310-562-2020 Email: charlie@sgcreditpartners.com www.sgcreditpartners.com

SG Credit Partners, Inc. provides $1 - $10 million structured debt solutions (senior/second lien) to lower middle market businesses across the country in need of financing for working capital, growth capital, acquisition capital, or special situations.

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Thomson Reuters (22), Booth #28 John Koski, Director, Sales and Client Management 610 Opperman Drive, Eagan, MN 55123 Phone: 651-687-8022 Email: john.koski@tr.com www.thomsonreuters.com

Thomson Reuters is a leading provider of business information services. Our products include highly specialized informationenabled software and tools for legal, tax, accounting and compliance professionals combined with the world’s most global news service – Reuters. For more information on Thomson Reuters, visit tr.com and for the latest world news, reuters.com.

UCCPlus Insurance (13), Booth #22 Gary Zimmerman, Senior Vice President 10 S. LaSalle St., Ste. 3100, Chicago, IL 60603 Phone: 847-691-5012 Email: gary.zimmerman@fnf.com www.uccplus.com

William Stucky & Associates, Inc. (22), Booth #20 William Stucky, President One Embarcadero Ctr., Ste. 1330, San Francisco, CA 94111 Phone: 415-788-2441 Email: bill.stucky@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, SNL Mobile App, NovaCS.NET Factoring System, Stratus.NET Factoring System.

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, 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 thirdparty challenge to the insured secured lender’s lien perfection and priority.

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Avidbank Holdings, Inc.: Mark Cameron has joined the bank as senior vice president and division manager, Structured Finance Division. Cameron comes to Avidbank with over 25 years of experience providing creative financing solutions to technology and life sciences companies, most recently as managing director of the Specialty Finance Division of Square 1 Bank. Prior to Square 1, he was president and co-founder of Sand Hill Finance, LLC, which provided AR-based financing solutions to emerging growth companies nationally. In 2013, Square 1 Bank acquired Sand Hill Finance. Before his time at Sand Hill Finance, Cameron held senior positions at Imperial Bank and Silicon Valley Bank. Joining Cameron on the Structured Finance team is Mark Lange, who will serve as senior vice president and will be based in Boston, MA. Lange will lead the national business development efforts for the division. Lange brings to Avidbank 20 plus years of finance expertise, most recently as senior vice president, Specialty Finance Division of Square 1 Bank. Prior to that, Lange led the national sales effort for Boston Financial and Equity Corporation, a boutique technology equipment leasing company. Earlier in his career, Lange held a senior business development position at GMAC. “In addition to specializing in the origination and servicing of accounts

receivable-based financing solutions for emerging growth and expansion stage companies, our new Structured Finance Division will strengthen our depth and adaptability as we position the Bank to capitalize on continued growth opportunities,” stated Mark D. Mordell, chairman and CEO of Avidbank. Bank of America Business Capital: Seth Benefield was appointed national marketing manager. Benefield will oversee a team of business development officers who provide asset-based solutions and banking products to large and middlemarket companies, intermediates and financial sponsors across the U.S. and Europe. Based in Atlanta, Benefield has been with the bank for 19 years, most recently as marketing manager for the Eastern U.S. and Europe. Prior to joining the bank, he served as a special agent in the Federal Bureau of Investigations. Benefield earned a Bachelor of Arts degree in accounting from University of Georgia. He is a Certified Public Accountant and holds Series 7, 24, 63 and 79 FINRA registrations. Bibby Financial Services (BFS), a leading global financier for small and mid-sized businesses, is pleased to announce the appointment of Jay Gardner as EVP, national sales manager for its US operations, effective June 17, 2019. In his new role, Gardner is responsible for all direct and channel sales efforts throughout the region with a focus on expanding adoption of Bibby Financial Services asset-based lending, invoice factoring and transportation finance services. Gardner brings more than 30 years of experience in the financial services sector and a strong background in management and business development. Most recently, he held the title of SVP, Regional Sales Manager at

Wells Fargo Capital Finance in Dallas, TX. Previously, he served as vice president/business development officer at Textron Financial in Dallas, TX. Gardner’s earlier career experiences include positions in management, sales and portfolio management at Marquette Commercial Finance in Fort Worth, TX and the Trust Company Bank in Atlanta, GA. Gardner said, “I’m excited to take on this new opportunity to lead our talented sales team and grow our footprint while fulfilling BFS’ mission to provide outstanding service and personalized funding options to America’s SMBs.” David Ciccolo, CEO and president of BFS, North America said: “We are honored to have Jay onboard and anticipate that his sales and leadership experience will prove invaluable to BFS’s growth strategy. He has deep knowledge of our market, products and clients and the ability to transform that knowledge into actionable results.” CIT Group Inc.: James J. Gifas has joined the company as the head of Treasury Services and will serve on CIT’s Executive Management Committee. In this role, he will manage the treasury and cash management product portfolio across the commercial and consumer businesses. “As CIT unlocks its full potential, we want to do the same for our clients. Delivering a more integrated set of banking solutions that drive value to our clients’ business is a top priority for us. Jim is a proven leader in this area, and we are pleased to welcome him to our team,” said CIT Bank, N.A. president and head of Commercial Banking Robert Rubino. With nearly 30 years of banking experience, Gifas joins CIT from M&T Bank Corp. where he was the senior vice president of Merchant Service

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& Commercial Card Services. Prior to that, he was the head of the Financial Institution Revenue Share Alliance Partnerships at First Data Corp. and the senior vice president and head of Treasury Management, Product, Strategy and Innovation at Capital One Financial Corp. Gifas spent six years at RBS Citizens Bank and at different points led their Treasury Solutions and Global Transaction Services Solutions divisions. He began his career at Citibank where he had several positions in the treasury and cash management areas. CIT’s Treasury Services business offers cash management, collections, disbursements and treasury management solutions for business clients. Citizens Commercial Banking: Roni Gannon has joined as an escrow agency relationship manager. With more than 20 years of financial services experience, Gannon joins Citizens from Radius Bank where he led the escrow sales and services division. Gannon will report to Lisa Murray, head of Professionals Banking at Citizens. The Professionals Banking Group provides industry expertise and financial solutions to professional firms, such as accounting and architectural firms, consultants and law practices. Citizens’ Escrow Agency Services help facilitate client transactions. As an agent, Citizens holds cash for multiple party transactions that require a neutral third party to administer distributions equitably. Prior to joining Radius Bank, Gannon spent 14 years in senior roles, including head of relationship management and sales, within the Corporate Investment Bank at Deutsche Bank. He focused heavily on global transaction banking and institutional cash and securities sales with clients in the United States, Europe and Latin America.

City National Bank: Marcelo Brutti has joined the company as executive vice president and chief risk officer. Brutti will report to City National’s chief executive officer Kelly Coffey and David Downie, RBC’s chief risk officer for the United States. He also will serve on the bank’s Executive Committee. Brutti will design, implement and lead the bank’s risk management and compliance programs, which support business growth strategies, protect the institution, and meet market and U.S. regulatory requirements. Prior to joining City National, Brutti served as chief risk officer at Hyundai Capital America. He has also had roles at Santander Bank, TD Bank and Wells Fargo, where he held credit administration and risk management positions in several locations, including his country of birth, Argentina. Cogent Bank announced two additions to the Specialty Lending Group team. Cristina Brabson has joined in the role as vice president-senior operations manager. Brabson had previously worked in a similar role as a senior account executive. In her position at Cogent, she will oversee the monitoring of Bank and Specialty Lending clients as well as provide expertise on Cadence, the software of choice for the Group. Abbey Henderson has taken a position as vice president-portfolio manager for the Specialty Lending Group. Henderson most recently worked in a similar role supporting the Orlando lending team at a national banking group. She will be responsible for new and existing borrower relationship management as well as having a primary role in underwriting, transaction decisions and portfolio maintenance. Commercial Finance Partners: Edward Rodriguez has been hired as a senior business development officer to

represent the company in the Midwest. He will be focused on expanding the company’s presence in Chicago, where he has been a leading business development officer. “Ed brings a wealth of experience in many different industries through his years in finance. He immediately gives us a market presence in Chicago, a large center for activity for us” commented Darren Palestine, managing partner. Rodriguez spent the previous nine years at Bibby Financial Services, where he was a top performing business development officer, with a specialty focus in transportation. Prior to his commercial finance experience, Rodriguez spent 18 years as an independent commodities trader and equity member at the Chicago Mercantile Exchange. He also has nearly 40 years of involvement in the trucking and transportation industry. Encina Business Credit announced that Ken Pardue joined its business development team as a senior managing director. Pardue is a senior leveraged finance professional with over 20 years’ experience in executive management, new deal originations, and underwriting and portfolio management. He previously served in leadership roles at Marquette Business Credit, Hilco, and PNC Business Credit. Pardue has also successfully held positions in corporate finance, marketing, and accounting. In his role, Pardue will be joining forces with Steve Beriau, an existing Encina business development executive in Chicago. Together they will be responsible for expanding business development and originations in Chicago, Milwaukee, Cleveland, Kansas City and Minneapolis. “We are excited to welcome Ken on board. His expertise in structuring deals and new business origination

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will undoubtedly help Encina continue to meet its growth objectives. Ken’s role will be key in promoting the Encina brand throughout the Midwest, and his track record for delivering results make me confident that his contributions will be important to our success” said Rob McMahon, Encina’s chief commercial officer. Pardue can be reached at kpardue@encinaBC.com. FGI: Robina Peanh has joined the firm as business development director. In this position, Peanh will be responsible for business development activities throughout the West Coast, with a focus on maintaining and strengthening relationships with fellow lenders, finance companies, equity sponsors, and other intermediaries. “Peanh will be vital to broadening our market presence on the West Coast by identifying, developing, and maintaining strategic relationships. Peanh’s reputation, knowledge, and extensive background in business development are tremendous assets to FGI. Peanh will pioneer FGI’s West Coast expansion, “says David DiPiero, CEO and President Peanh comes to FGI with twelve years of experience in structuring trade credit insurance for corporate and financial institutions as well as extensive expertise in arranging supply chain and cross-border financing. Peanh was the regional director at Meridian Finance Group before joining FGI. Peanh has gained a vast knowledge of many financial tools throughout her career that she looks to apply in her new role at FGI. Peanh adds, “I’m excited to be part of FGI and committed to our West Coast expansion. FGI’s ability to offer multitude of tools to support and strengthen companies across the globe is key for growth all around.”

MidFirst Business Credit (formerly Presidential Financial Corporation (PFC): Tympra Stein has joined its team as a business development officer in Phoenix, Arizona. In her new role, Stein will be responsible for originating, structuring, and funding asset-based financing solutions with commitment amounts up to $30 million for middle-market businesses in the Southwest region. Stein brings commercial lending experience to PFC, including acquisition financing, credit underwriting, portfolio management, and new business development. She comes to PFC from J.P. Morgan Chase Bank where she was a senior relationship manager. Prior to Chase Bank, Stein worked in SBA and equipment financing for Bank of America in Charlotte, North Carolina, covering the Southeast region. Stein earned a Bachelor of Science in finance from the University of North Carolina Charlotte. She is a member of the Association for Corporate Growth and the Turnaround Management Association. MidFirst Business Credit (MBC) is pleased to announce that Kevin Poff has joined its team as a business development officer in Nashville, TN. In his new role, Poff will be responsible for originating, structuring, and funding asset-based financing solutions, with commitment amounts up to $30 million, for middle-market businesses in the Southeast region. Poff brings significant asset-based lending experience to MBC, including field examination, portfolio management, credit underwriting, and new business development. He comes to MBC from Huntington Business Credit where he was their business development officer in the MidSouth through Southern Ohio. Prior to Huntington, Poff has worked for 30 years in senior roles helping several financial institutions develop and manage assetbased lending portfolios.

Moritt Hock & Hamroff: Peter B. Zlotnick and Alexander Litt have joined the firm. Zlotnick joins the firm’s Litigation and Real Estate practice groups as a partner and Litt joins the firm’s Litigation practice group as an associate. Both reside in the firm’s New York City office. “We are pleased to welcome Peter and Alex to the firm,” stated Marc Hamroff, managing partner. “Both are talented attorneys who will provide valuable skills to our clients and strengthen our practice as we continue to advance the scope of our services in New York City.” With over 25 years of experience, Zlotnick focuses his practice on real estate matters and complex construction defect litigation as well as complex commercial and healthcare disputes. His clients include commercial and residential developers, co-op and condominium boards, design professionals, private equity firms and high net worth individuals. He also litigates corporate governance, business torts, bankruptcy and other types of business disputes. In addition, Zlotnick serves as a federal equity receiver in consumer fraud federal equity receiverships for the Federal Trade Commission. He earned his J.D. from Benjamin N. Cardozo School of Law Yeshiva University and his Master from Harvard University. Litt concentrates his practice in all facets of complex commercial litigation. He earned his J.D., cum laude, from the University of Miami School of Law. Moritt Hock & Hamroff LLP is a 75+ lawyer firm providing a wide range of legal services to businesses, corporations and individuals worldwide from its offices in Manhattan and on Long Island. North Mill Capital LLC announced the addition of Tammy Bowling as its Vice President, Invoice Based Financing, East Coast Director. Prior to joining North Mill, Bowling worked at Riviera Finance. She has over 22 years of lending experi-

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ence ranging from underwriting to senior account executive. Betty Hernandez, executive vice president and chief credit officer said, “Tammy will be instrumental with assisting North Mill in our continued growth of the portfolio.” Bowling will be based out of the Princeton, NJ office. North Mill Capital provides assetbased loans and factoring facilities from $50,000 to $30 million. North Mill Capital LLC is a wholly owned subsidiary of Solar Senior Capital Ltd. Presidential Financial Corporation (PFC) announced that it changed its name to MidFirst Business Credit. This allows PFC to align more closely to MidFirst Bank, its parent company, while continuing to provide best of class asset-based lending and banking services. As always, the focus remains on its customers, and as such, all services will remain the same. MidFirst Business Credit president Dennis Schlesner says, “This is an exciting new chapter for our business, allowing us to further enhance our already great line of products and services and align ourselves more closely with the corporate brand.” Headquartered in Atlanta with offices in Chicago, Dallas, Detroit, Nashville, and Phoenix, MidFirst Business Credit provides customized and flexible financing solutions to growing businesses nationwide. Offering lines of credit of up to $30 million, MidFirst Business Credit provides working capital and term loan facilities for acquisitions, recapitalizations, working capital needs and turnaround situations. MidFirst Business Credit is owned by MidFirst Bank, one of the nation’s largest privately held banks with more than $19 billion in assets. This unique structure gives MidFirst Business Credit the flexibility of a finance company with the financial backing and stability of a bank.

Prestige Capital Corp.: Larry Artman of Marietta, GA joined as sales director, Southeast. Artman has more than 35 years of experience in the financial services sector and will oversee the growth of Prestige Capital in the Southeast region, specifically Georgia, Alabama, Tennessee, Florida, and North and South Carolina. Artman will be based out of Atlanta, GA. “We are very pleased to have Larry join our team. His passion, combined with his years of financial experience, is sure to be an asset to our business and our clients,” said Stuart Rosenthal, Prestige Capital’s president. “Having someone of Larry’s caliber represent us in the Southeast is critical to our continued growth. We are excited to expand our reach and help more companies take their businesses to the next level.” Artman is a member of the Secured Finance Network, Turnaround Management Association, and Risk Management Association in Atlanta, Florida, and Charlotte. As part of his day-to-day duties spanning many years, he has given numerous presentations for commercial banking groups, equity sponsors and CPAs. Before joining Prestige Capital, Artman was the senior vice president of client development at Celtic Capital Corporation. RedRidge Diligence Services: Tom McClay has been appointed to its New York office as director. McClay will be responsible for further embedding RedRidge’s success with private equity groups, investment banks and corporate clients in the Northeast region by providing buy-side and sell-side financial due diligence services. McClay has extensive experience in financial due diligence, transaction structuring, deal negotiation and post-transaction assistance, having held several senior roles within the financial services space. Most recently,

he served as director at Grant Thornton LLP where, among other responsibilities, he supervised buy and sell-side financial due diligence. McClay’s appointment marks a significant step forward in the company’s growth initiative and follows recent expansions in other strategic markets such as Denver, Philadelphia and Dallas – as well as the launch of its first international office in London. “Tom will play a pivotal role in contributing to the continued success of the business while maintaining and building on core relationships with our clients,” says RedRidge Diligence Services’ managing director, Cory Ryan. “We are delighted to welcome someone with Tom’s wealth of experience to serve as the Northeast practice leader as we bolster our presence in the region.” Republic Business Credit: Andrea Marus has been promoted to vice president of business development in its new Nashville office. According to a recent Forbes article, Nashville located in Davidson County, is the seventh fastest growing metro area in the United States. Marus grew up in Tennessee before attending the College of Charleston. Republic strongly believes Nashville is a fantastic opportunity for growth in a market that is underserved by the non-bank commercial finance community. This marks Republic’s sixth established market presence and its second new market in the past 12 months. Andrea is already a member of the Tennessee Chapter of the Turnaround Management Association, Secured Finance Network’s MidSouth Chapter and will be joining the Tennessee Chapter of the Association for Corporate Growth. Marus joined Republic in 2016 as AVP, underwriter in its New Orleans Headquartered office. Prior to joining Republic, Marus spent nearly three years and completed the Financial Analyst training

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program for Wells Fargo Commercial Bank. She always wanted to expand her career into the business development side and will bring a great deal of credit and underwriting experience to support intermediaries and clients throughout the Mid-South region. Her office will be at One Nashville Place, 150 4th Ave N in downtown Nashville. Republic hopes to appoint a junior business development officer in the future to support Marus so she can keep up with the growing demand for non-bank lending solutions in the Greater Tennessee area. Renasant Corporation: Curtis Perry has joined Renasant Bank as chief corporate banking officer. Perry brings to Renasant more than 34 years of banking experience with regional banks in the southeastern United States, having served in

senior leadership positions in both commercial banking and corporate credit. Perry’s primary office will be in Columbus, GA, but he will be focused on footprint-wide recruiting and leading corporate banking teams for Renasant. During Perry’s banking career, he’s held an array of positions in commercial banking and credit administration. “As we continue to build out our corporate and commercial banking teams and add banking talent, Curtis will be a great asset in leading our Corporate Banking Division,” said Renasant chief commercial banking officer, Bartow Morgan, Jr. “Furthermore, adding Curtis’s expertise to Renasant will enhance our lending abilities which will positively impact both our current and future corporate and commercial banking clients.”

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Signature Bank announced the expansion of both its established Fund Banking Division as well as its recently formed Venture Banking Group, with the appointment of several new banking professionals. Within the Fund Banking Division, Charlie Owens was named to the position of managing director, based in Charlotte, NC. In this role, Owens, a 25-year banking veteran, will focus on sourcing, originating and structuring new business opportunities in the private equity industry. For the past seven years, Owens served as managing director within Wells Fargo’s Subscription Finance Group, responsible for origination and structuring fund financing facilities, also located in Charlotte. Concurrently, Brad Boland, with two decades of banking experience, was also named managing director. He is based in the Bank’s San Francisco private client banking office. Boland will also focus on generating new opportunities within the private equity industry, with an emphasis on the West Coast. Earlier, for nearly eight years, Boland was managing director and co-head of originations for Wells Fargo’s Subscription Finance Group, responsible for developing and implementing origination strategy and managing a team of six Charlotte-based originators. Signature Bank’s newly launched Venture Banking Division added ten senior-level team members throughout the country, most of whom join from Square 1 Bank, a division of Pacific Western Bank. The Venture Bank Group now totals 28 banking professionals nationwide. Jody Shepherd was named managing director, Technology. He will manage the technology banking practice in the Rocky Mountain region and will be based in Denver. Jeff Lampe, managing director, Technology in Chicago, will oversee a 13-state region spanning the Midwest, focus-

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ing on venture lending to regional and national venture capital entities. He held the same title at Square 1 for three years prior to joining Signature Bank. Also based in Chicago is Lisa Foussianes, appointed to the post of senior vice president on the Life Sciences team. In this role, she will handle loan originations and relationship management. Philip Korn was appointed to the role of managing director, head of Venture Capital Relationships for the Bay Area. Korn, with more than 25 years of banking-related experience, held the same position at Square 1, managing national venture capital relationships for more than six years. Seong Kim was named managing director, Technology, based in Los Angeles. He will be responsible for launching the Venture Banking Group’s technology banking practice on the West Coast. In this capacity, Kim will build out the team in Los Angeles as well as handle new business development among highgrowth technology companies across several major innovation hubs, such as San Diego, Los Angeles, the Bay Area and Seattle. Several banking professionals will join Signature Bank’s Venture Banking Group in Durham, NC: Justin McDonie was named managing director, Life Sciences; Michael Fulton was appointed managing director, Venture Capital Services; and Zack Mansfield was named managing director, Technology. McDonie, with more than 13 years of experience in the life sciences arena and several in banking, will concentrate on growing the Venture Banking Group’s Life Sciences practice nationwide. He will handle new loan originations as well as cultivate relationships with venture capital investors and entrepreneurs across life sciences verticals nationwide. Fulton brings 14 years of banking experience to his new role, in which he will focus on providing banking services

to venture capital firms. In his new position, Mansfield will work on new business development and relationship building amongst highgrowth technology companies and the venture community throughout the Southeast. He held the same position at his previous employer, Square 1 Bank, since joining 12 years ago. Appointed to the post of managing director, Technology in Atlanta, Ned Hill will develop and manage the Group’s venture banking business throughout Atlanta and the Southeast as well as Texas. Kevin Johnson, whose banking experience spans 15 years, was also named managing director, Technology, as part of the newly formed national Venture Banking Group. In his new role, Johnson, based in Washington, DC, will work closely with entrepreneurs by providing debt and cash management solutions for technology companies supported by venture capital. TD Bank, America’s Most Convenient Bank®: Sheryl L. McQuade was named regional president for Northern New England, covering Maine, Vermont and New Hampshire. In this role, McQuade will lead TD Bank’s Northern New England retail, small business, commercial and middlemarket banking operations and lending services throughout a network of approximately 130 stores and 4,300 employees. Her primary office location will be in Manchester, New Hampshire. “Sheryl brings a wealth of banking experience and will be a great asset to TD Bank as we grow both our customer and employee base,” said Chris Giamo, head of Commercial Bank. “TD is committed to Northern New England and our operations in the region, and we are proud to have Sheryl lead our market teams.” McQuade has more than 30 years’ experience in banking, most recently

serving as the Senior Credit Officer for Wholesale Banking at United Bank in Massachusetts and Connecticut, a position she held since 2014. Her previous experience also includes commercial and middle-market banking within the New England region at Bank of America and Berkshire Bank. U.S. Bank: Joshua Shade has been named Arizona market president. In this role, Shade will lead the market in companywide efforts and activities and direct commercial banking in Arizona. He succeeds Brian Schwallie who was recently promoted to the role of head of Commercial Deposits & Payments Solutions. Shade previously served in the role of vice president of Commercial Banking at U.S. Bank with responsibility for a portfolio of middle-market companies. Before joining U.S. Bank, Shade served as a senior client manager, Commercial Banking at Opus Bank and vice president, National Banking with Bank of the West; both roles were based in Phoenix. Shade has lived in and served the Arizona market for many years and will assume the market president role with many strong connections to the community. Throughout his 20-year career in banking, he has focused most of his time and attention on the commercial banking sector. “Since joining U.S. Bank, Josh has been a key part of our efforts in Arizona, helping middle-market companies succeed and managing some of the market’s most complex relationships,” said Elliot Jaffee, executive vice president and head of Commercial Banking. “Josh’s leadership, banking experience and commitment to the market will enable us to continue to provide great value to clients, employees and the community alike.” Wells Fargo Capital Finance, part of Wells Fargo Commercial Capital, announced that it has completed its U.S.

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sales leadership team for the Middle Market Asset-Based Lending (ABL) group, which focuses on transactions under $35 million. With more than a century of combined financing experience, the new regional managers are Jeremy Baker, Midwest; Eric Baymiller, West; Dave Ellis, South; and Peter Pugliese, North. Led by Kevin Gillespie, head of Middle Market ABL, and Michael Marcolina, head of Middle Market National Originations, this unit houses specialized expertise dedicated to the nation’s vital middle-market sectors: retail and consumer goods; manufacturing and distribution; government contractors; staffing; trucking and transportation; and business services. Middle-market companies generate one-third of U.S. private sector gross domestic product and jobs, according to the National Center for Middle Market. Wells Fargo has the No. 1 market share of primary banking relationships with middle market companies.* “This step is part of the transformation taking place across our Commercial Capital organization,” said Gillespie. “We’re bringing our legacy factoring and asset-based businesses together and finding opportunities to serve clients more effectively and grow with the Commercial Banking team led by Kyle Hranicky.” Reporting to Marcolina are: Jeremy Baker, Midwest: With 15 years of ABL and commercial finance business experience, Baker held previous leadership roles at LaSalle Bank and Protiviti before joining Wells Fargo, where he has spent most of his career. Eric Baymiller, West: With 30 years of experience in the banking and financial industry, Baymiller has held leadership positions at GE Capital, Union Bank, and most recently Wells Fargo.

Dave Ellis, South: With more than 30 years of banking experience, Ellis has held leadership roles in the Capital Finance factoring and ABL division. Peter Pugliese, North: With most of his 30 years in banking at Wells Fargo in ABL leadership roles, Pugliese graduated from State University of New York College at Oneonta and lives in New York City. “With this leadership team in place and a product set that includes factoring and asset-based lending, we can provide middle-market companies with financing and industry experience that will help them succeed financially,” said Marcolina. Wells Fargo: Hans Sitarz has been chosen to lead commercial banking operations in Alabama and Mississippi for Wells Fargo. Sitarz, who is based in Birmingham, is a 26-year veteran of the company and a longtime Birmingham banker. Alex Idichandy, head of Wells Fargo Commercial Banking’s southeast division, said Sitarz has a “depth of financial experience who brings passion and proven leadership in serving commercial companies’ financial needs.” Sitarz has previously worked at positions with middle-market banking in Birmingham, PNC Bank, and First Union National Bank, a predecessor of Wells Fargo. He also spent six years in London where he was a director in the European corporate and investment banking group. As commercial banking market executive, Sitarz now leads Wells Fargo commercial banking teams in Alabama and Mississippi, which provide products and services, including credit and treasury solutions, to customers with annual sales typically ranging from $5 million to $2 billion.

AMONG SFNET EDUCATION FOUNDATION MEMBERS Conway MacKenzie Hires Steven J. Alexander as an Executive Director for its Grand Rapids Office Conway MacKenzie has announced that Steven J. Alexander has joined the firm as an Executive Director and will lead the Grand Rapids office. In his role, Alexander will provide strategic counsel to senior leaders of middle-market companies and their constituents. With over 35 years of professional experience in senior management consulting, financial assessment, performance improvement and transaction services, Alexander most recently served as PNC bank’s EVP of corporate banking. There, he led their middle-market and corporate finance activities in Michigan and North West Ohio along with their Native American Gaming activities nationally. “Steven brings to our firm outstanding relationships and knowledge in the Grand Rapids banking and financial community,” said Steve Wybo, senior managing director and leader of Conway MacKenzie’s Michigan market. “His return here will elevate our presence and services in this important marketplace.” Previously, Alexander held numerous positions within PNC bank, including Regional President roles in the Western and Central Michigan regions, the former encompassing the Grand Rapids area. In addition, his career has included regional leadership of the bank’s credit administration, loan recovery, treasury management and investor real estate functions. A graduate of Central Michigan University, Alexander earned a bachelor degree in business administration with an emphasis in finance and economics. He resides in Grand Rapids. Conway MacKenzie, Inc. is the premier consulting and financial advisory firm driving growth and creating value. Across industries and across the country,

THE SECURED LENDER OCTOBER 2019 79

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Conway MacKenzie delivers hands-on financial, operational and strategic services that help healthy companies grow and troubled companies get back on track. The firm operates globally and has domestic offices in Atlanta, Chicago, Cleveland, Dallas, Detroit, Grand Rapids, Houston, Los Angeles, Miami, and New York. Additional information can be found at www.ConwayMacKenzie.com. For additional information, please visit at www.ConwayMacKenzie.com or call 248.433.3100. B. Riley Financial’s GlassRatner adds Restructuring and Forensic Experts, Wayne Weitz and Coral Hansen. GlassRatner Advisory & Capital Group, LLC, a leading specialty financial advisory firm and wholly owned subsidiary of B. Riley Financial, Inc. (NASDAQ:RILY), announced the addition of Wayne P. Weitz and Coral M. Hansen. Weitz joins as a principal based in New York and Hansen joins as a senior managing director based in Los Angeles. Weitz and Hansen bring deep industry expertise and decades of experience to the firm’s growing Bankruptcy & Restructuring and Forensic Accounting & Litigation Support practices. Weitz is a Certified Turnaround Professional (CTP) with more than 30 years in financial and operational restructuring, bankruptcy, mergers and acquisitions and complex bondholder litigation for the healthcare, real estate, energy and automotive dealer sectors. He rejoins GlassRatner from Hammond Hanlon Camp LLC (H2C) where he served as managing director and Restructuring Practice Leader. Weitz co-leads the firm’s New York practice along with Tom Buck. Hansen is a veteran advisor with over 28 years specializing in forensic accounting, litigation support, expert witness testimony and fraud investigations for both the public and private sectors. She joins GlassRatner from CBIZ MHM LLC

where she served as Managing Director in the firm’s Corporate Recovery Services division. “Wayne and Coral are both highly regarded in their respective fields and have served as trusted advisors in our industry for several decades,” said Ian Ratner, principal and CEO, GlassRatner. “Wayne is a strong leader and a highlyskilled practitioner who has been a friend to me and to GlassRatner for over 25 years. He is valuable addition to our expanded firm, and we are delighted to welcome him back. Coral is also a known talent in our industry. We have worked with and across the table from her on many cases over the years and we are pleased to have her on our team as we continue to build upon our core business. Our strong firm culture and network of affiliated companies under B. Riley allow us to provide a differentiated approach to meet the diverse needs of our clients in any complex scenario.” Weitz is focused on advising troubled companies and stakeholders in and out of bankruptcy in domestic and crossborder situations. He specializes in debtor and borrower advisory services, secured and unsecured creditor advisory services, offshore and cross-border insolvency, valuation, litigation support and statutory and ad hoc committees. Mr. Weitz helped establish GlassRatner’s original presence in New York in 2009 and has served as Managing Director with other restructuring advisory firms including EisnerAmper LLP and Gavin/ Solmonese LLC. Prior to his career in restructuring, he held several corporate positions with responsibilities spanning capital allocation, strategic planning, international acquisitions, valuation of potential acquisitions and investments and deal execution. He began his career as an investment banker and completed nearly 100 acquisitions, dispositions and capital formation transactions. Mr. Weitz is co-chair of the American Bankruptcy

Institute’s (ABI) Complex Financial Restructuring Program and is former co-chair of ABI’s Financial Advisors and Investment Banking Committee. Hansen advises clients and counsel on complex business disputes involving the investigation, evaluation and quantification of economic damages. She has performed hundreds of analyses including probate and estate disputes, post-acquisition claims, breach of contract, royalty disputes, lost profits, bankruptcy and insolvency, intellectual property, real estate and construction, personal injury, professional malpractice, alter ego, account tracing, fraud and internal investigations. Ms. Hansen has testified in numerous trials, depositions and arbitrations as an expert witness, and has provided testimony in Superior, Federal and U.S. Bankruptcy court cases. She began her career with Ernst & Young providing auditing, consulting, fraud analysis and internal control reporting services. Ms. Hansen has held various senior and executive level corporate leadership roles over the course of her career including Chief Financial Officer, Vice President of Finance, and Corporate Controller for a range of small and midsized publicly traded companies. She is a Certified Public Accountant (CPA), a Certified Fraud Examiner (CFE), Certified in Financial Forensics (CFF) and is Accredited in Business Valuation (ABV). She has served as the Chair of the California Society of Certified Public Accountants’ (CalCPA) State Fraud Section and as an instructor for the AICPA Uniform CPA Examination.

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Good to Know

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CHAPTER NEWS Europe The Chapter will host an event in Paris on October 3 at Banque Neuflize OBC. The event, Paris: The French ABL Market, will explore the French ABL market in detail from both business and legal perspectives. Speakers will focus on the specifics of the domestic market and the opportunities available to dealmakers, including sector-specific trends and the technical differences in the French market. Lenders and service providers from the ABL community are expected to attend from across Europe, who have a keen interest in understanding France as a source of potential opportunity. Welcome remarks will be conducted by Lauren Garret, chief executive officer, Banque Neuflize OBC and Jeremy Harrison, president of SFNet’s Europe Chapter. The Keynote presenter will be Françoise Palle Guillabert, director general at ASF - Chair at EUF (EU factoring association), followed by An Overview of the French Legal Framework with Véronique Collin, partner, Squire Patton Boggs, presenting. The Business Panel: Asset Based Lending in the French Market will comprise: Arjan de Liefde, managing director France, ABN AMRO Asset Based Finance; Patrick de Villepin, global head of factoring, BNP Paribas Factoring; Gaëtan du Halgouet, founding partner, Chateaudun-Credit with moderator Ronald Biemans, head of Origination & Structuring, ABN AMRO Asset Based Finance. Save the date for the Chapter’s Seasonal Celebration in London on Novem-

ber 20 at Aon, The Leadenhall Building, co-partnered with TMA UK. The event will also feature an informal keynote from Trevor Williams, economist, visiting professor, lecturer and writer. Registration will open in September. For more information visit www.sfnet.com/europe Houston The Chapter held its 11th Annual Private Equity Luncheon on September 18 at Vic & Anthony’s in Houston, TX. Panelists included: Gretchen B. Perkins, Huron Capital; David Magdol, Main Street Capital; JB Dollison, Crutchfield Capital and Codi Biller, Amegy Bank. To register visit sfnethou.org. For more information visit www.sfnet.com//houston New England The SFNet New England Chapter’s Beer Tasting and Networking event was held on September 17 at Democracy Brewing in Boston, MA. Drinks and appetizers were served along with four tastings from the Democracy Brewing lineup. For more information, visit www.sfnet.com/new-england New Jersey The Chapter will hold a Monday Night Football and SFNet New Jersey Chapter Members Registration event on October 21 at MetLife Stadium in East Rutherford, NJ. The New York Jets vs. the New England Patriots game will kickoff at 8:15 p.m. Registration includes food and drink during a two-hour “tailgate” inside the stadium and a ticket to the game. Save the date for the Chapter’s 2019 Holiday Party on December 11 at Calandra’s Mediterranean Grill in Fairfield, NJ. For more information, visit www.sfnet.com/new-jersey

Ohio The Chapter’s Annual SFNet/TMA Joint Shuffleboard Event was held August 29 at Forest City Shuffleboard in Cleveland, OH. The venue featured indoor and outdoor shuffleboard courts, regulation shuffleboard tables and a patio. For more information, visit: www.sfnet.com/ohio Southern California The Chapter’s Women of CFCC held its Wine, Women and Wonderful Food event on September 25 at LA Food Works in Los Angeles, CA from 5:30 to 8:30 p.m. at The Beverly Hilton Hotel in Beverly Hills, CA. The Chapter hosted Jake Olson, blind long snapper and former USC Trojans football player on October 2. When Jake was eight months old, he was diagnosed with a rare form of eye cancer, retinoblastoma. The disease claimed his left eye at 10 months old and in November 2009, Jake lost his right eye after battling the cancer for 12 years. Jake’s ability to cope with his blindness while maintaining a positive, “can-do” attitude speaks volumes for his perseverance, character and desire to excel in everything he does in life. Jake began motivationally speaking at the age of 12 and at the age of 20 became the first completely blind football player to play in a Division I college football game. Shortly before Jake went blind, Pete Carroll, head coach of the USC Trojans, heard about his story and invited him to USC’s next practice. Jake was thrilled to get to go behind the scenes with his favorite team. He had no idea that Coach Carroll intended to make him a part of the Trojan family, and that watching this practice was only the beginning of a relationship that would change his life forever. Chapter friends and colleagues enjoyed a unique evening to hear an uplifting, true-life story of a local young man

DON’T MISS SFNET’S 75TH ANNUAL CONVENTION NOVEMBER 13-15, 2019 TO REGISTER VISIT WWW.SFNET.COM

the cfa brief

who has overcome adversity through sheer will, perseverance, hard work and the love for living. The Chapter’s Annual Fall Golf Classic will be held November 5 at Coyote Hills Golf Course in Fullerton, CA. Save the date for the Chapter’s Holiday party, held December 11 at Mr. C’s Beverly Hills. For more information visit www.sfnet.com/southern-california

For more information, visit www.sfnet.com/southwest.

Southwest The Eighth Annual Energy Summit was held on September 17 at the Belo Pavilion in Dallas. The Holiday Party with TMA and TFF, will be held at Dallas Country Club in Dallas, TX on November 21. PEGapalooza 2020 Dealmaker Wine and Whiskey Tasting will be held January 30, 2020 at 3015 at Trinity Groves in Dallas, TX.

For more information on SFNet Chapters, please visit: www.sfnet.com/chapters

Tampa Bay SFNet’s Tampa Bay Chapter hosted a Networking Reception at Topgolf Miami Gardens on September 10. For more information, visit https://www.sfnet.com/ home/chapters/tampa-bay For more information, visit www.sfnet.com/tampa-bay

TSL Online: Visit SFNet.com

Online Exclusives and News Visit sfnet.com to read the latest issue and web exclusive subscriber only content. Also sign up for our daily enews blast highlighting industry deals, moves and more - signup at sfnet.com/tslexpress

THE SECURED LENDER OCTOBER 2019 83

AD INDEX Accord Financial. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.accordfinancial.com. . . . . . . . . . . . . . . Page 37 Capital One, N.A.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.capitalone.com. . . . . . . . . . . . . . . . . . . . IBC

CALENDAR

Crystal Financial. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.crystalfinco.com. . . . . . . . . . . . . . . . . . . Page 31 Equiniti Riskfactor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.equinitiriskfactor.com. . . . . . . . . . . . . Page 3 Fifth Third Business Capital. . . . . . . . . . . . . . . . . . . . www.53.com/businesscapital. . . . . . . . . . . Page 41 Freed Maxick ABL Services . . . . . . . . . . . . . . . . . . . . www.freedmaxick.com. . . . . . . . . . . . . . . . . . Page 83 Goldberg Kohn . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.goldbergkohn.com . . . . . . . . . . . . . . . . Page 25 Goodman Capital Finance. . . . . . . . . . . . . . . . . . . . . www.goodmancapitalfinance.com. . . . . Page 81 Hilco Global . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.hilcoglobal.com. . . . . . . . . . . . . . . . . . . . BC Otterbourg P.C. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.otterbourg.com. . . . . . . . . . . . . . . . . . . . Page 21 PNC Business Credit. . . . . . . . . . . . . . . . . . . . . . . . . . . . www.donedeal.pnc.com. . . . . . . . . . . . . . . . . Page 15 Sterling National Bank. . . . . . . . . . . . . . . . . . . . . . . . . www.snb.com. . . . . . . . . . . . . . . . . . . . . . . . . . . . IFC William Stucky & Associates, Inc. . . . . . . . . . . . . . www.stuckynet.com. . . . . . . . . . . . . . . . . . . . . Page 1 Tiger Group. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.tigergroup.com. . . . . . . . . . . . . . . . . . . . Page 51

October 21, 2019 SFNet’s New Jersey Chapter – Monday Night Football NY Jets vs. New England Patriots MetLife Stadium East Rutherford, NJ October 24, 2019 SFNet’s South Florida Chapter - October Evening Reception in Mizner Park 131 East Lounge Boca Raton, FL November 5, 2019 SFNet’s California Chapter Annual Fall Golf Classic Coyote Hills Golf Course Fullerton, CA

Utica Leaseco, LLC. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.uticaleaseco.com. . . . . . . . . . . . . . . . . . Page 78 Wells Fargo Capital Finance. . . . . . . . . . . . . . . . . . . www.wellsfargocapitalfinance.com. . . . Page 2

December 4, 2019 SFNet’s Philadelphia Chapter Joint Holiday Gathering with TMA Philadelphia/Wilmington The Racquet Club of Philadelphia Philadelphia, PA December 5, 2019 SFNet’s Ohio Chapter Holiday Party Nuevo Cleveland Cleveland, OH

December 11, 2019 SFNet’s California Chapter Holiday Party Mr. C’s Beverly Hills, CA December 11, 2019 SFNet’s New Jersey Chapter – Holiday Party Calandra’s Mediterranean Grill Fairfield, NJ

Experience a whole new

November 13-15, 2019 SFNet’s 75th Annual Convention New York Marriott Marquis New York, NY November 13, 2019 SFNet’s California Chapter OC Networking Event Center Club – Orange County Costa Mesa, CA November 20, 2019 SFNet’s Europe Chapter Seasonal Celebration Aonm The Leadenhall Building London, England November 21, 2019 SFNet’s Southwest Chapter Holiday Party - CFA, TMA & TFF Dallas Country Club Dallas, TX

on life for your clients. It’s difficult for financially challenged companies to preserve capital and manage cash flow to move ahead. Utica Leaseco can help improve your clients’ position with a creative funding approach that gets challenging deals done, fast. They’ll benefit with lease and loan solutions such as: • Capital leases and sale/leaseback transactions • Secured loans • Debtor-in-possession financing Contact us today! 248-710-2134 | info@uticaleaseco.com | www.uticaleaseco.com

Finance with collateral, not credit.

DON’T MISS SFNET’S 75TH ANNUAL CONVENTION NOVEMBER 13-15, 2019 TO REGISTER VISIT WWW.SFNET.COM

Great opportunities demand smart lending and customized solutions.

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Capital One’s commercial lender finance specialists use their knowledge of secured business credit, combined with data analytics and industry trends to give your business an advantage. Backed by the capabilities of a top 10 U.S. bank*, we lend capital to help companies stay ahead of the competition. Our financing solutions include: • Asset-based lending • Small business finance and factoring • Insurance premium finance • Equipment finance • Floor plan finance

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capital.one/ﬁnancialinstitutions Note: Rank excludes banks with high non-loan asset concentrations: Goldman Sachs, Morgan Stanley, BONY, State Street, Charles Schwab. Ranks as of 12/31/18. Based upon total gross loans and total aggregated domestic deposits for bank holding company. Sources: SNL, FDIC, company reports. Subject to credit approval. Additional terms and conditions apply. Products and services oﬀered by Capital One, N.A., Member FDIC. © 2019 Capital One.

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