- Michelle Moore Named Digital Platform Leader at Wells Fargo
- UMB Bank Welcomes Jeff Dunbar to Capital Finance Business Development Team
- Proskauer Expands Litigation Practice into the U.K. with the Addition of Partner Dorothy Murray in London
- AlixPartners Bolsters M&A Services Capability With New Managing Director, Nick Wood
- Five Star Bank Names Kevin Quinn Senior Vice President and Commercial Banking Executive
TSL Feature Articles
Interview with Mac Fowle, Global Head of Asset-Based Lending for J.P. Morgan Commercial Banking
Mac Fowle is the global head of Asset-Based Lending (ABL) for J.P. Morgan Commercial Banking. He is responsible for the end-to-end strategic leadership of the ABL group in supporting the financing needs for clients across Commercial Banking and the Corporate & Investment Bank (CIB).
From January 2019 to January 2021, Mac was the chief risk officer for ABL, where he was in charge of all aspects of ABL credit risk including field examinations, credit underwriting and ongoing portfolio management. Prior to this role, Mac was a managing director in High Yield and Leveraged Loan Capital Markets in the CIB, where he was responsible for the origination, structuring and distribution of ABL loans, institutional term loans and high yield bonds across a variety of industry sectors.
Mac joined J.P. Morgan in July 2007 and has been involved in leveraged finance and asset-based lending for over 20 years. He holds a B.A. in finance from Indiana University.
Is Cannabis Lending In Your Future?
Armstrong Teasdale partners provide lenders with up-to-date information on the complexities of lending to the legalized marijuana industry.
Perhaps the most frequently asked question by growth-oriented lenders is “How and when can we lend into the rapidly growing and already major industry of legalized marijuana?”
The answer is: “It is not so simple.”
Aftershocks Coming? Anticipating Borrower Defaults and Defenses When Stimulus Ends
When the world turned upside-down a year ago, many predicted that the severity of the damage to the U.S. economy would usher in a period of borrower defaults, business failures and bank foreclosures. Rapid government intervention, including bank regulatory easing, has prevented that series of events, for now. Those policy measures will surely come to an end before long, at which point lender enforcement activity will likely increase.
Assessing The Bankruptcy Environment: The Experts Weigh In
The Federal Paycheck Protection Program loan funds did buy many struggling businesses time to weather the proverbial economic storm. Plus, secured lenders, not surprisingly, found it much more advantageous to work with borrowers and extend liquidity than deal with a bankrupt business. The idea was simply that the pandemic couldn’t last forever and that the economy, as it is now, does appear to be on the mend.
Asset-based lenders were aware of the problems going into the pandemic. Not surprisingly, brick and mortar retailers, already facing significant financial stress before the shutdown, did take the brunt of the pandemic and many were forced to shutter stores, says Dan Karas, executive vice president of Allied Affiliated Funding, a division of Axiom Bank, N.A. Many large retailer liquidations dominated 2020, including J.C. Penney and Pier 1. The silver lining for lenders, as it turns out, is that liquidations were generally not the order of the day for most businesses, he adds. According to data from Epiq, commercial Chapter 11 filings grew year-over-year, up 29% in 2020 compared to 2019.
SFNet Q3 Asset-Based Lending Index Analysis
The Q3 2020 Asset-Based Lending Index reflects improving confidence for lenders, fears of a double-dip downturn subsiding, and exhibits the continuing impact of PPP funds distributed in April. The U.S. economy rebounded during Q3 as lockdowns subsided, leading to a GDP surge of 33%.
This growth had a clear impact on portfolio health with non-accruals, special mention, and write-offs reducing quarter over quarter.
Bill Stapel and Greg Eck, New Leaders of Fifth Third Bank Asset-Based Lending Group, Share Vision for 2021
Greg Eck and Bill Stapel are the new leaders of the ABL Group at Fifth Third Bank, N.A., one of the nation’s largest asset-based lenders, with $8.1 MM in commitments and serving customers in 38 states, Canada and Europe. They step into their roles following the retirement of Fifth Third Business Capital President Mike Sharkey, who was also past president and chairman of Secured Finance Network.
Andy McGhee on White Oak and the Lender Finance Market Ahead
Andy McGhee is vice chairman of White Oak Commercial Finance (White Oak), an affiliate of White Oak Global Advisors, LLC, and leads the firm’s lender finance business. He has over 30 years of experience in the lending business, most recently managing a multi-billion-dollar loan portfolio as the CEO of AloStar Capital Finance. In 2011, McGhee co-founded AloStar Capital Finance by acquiring a failed bank in Birmingham, AL.
At the time of its sale in 2017, AloStar had committed more than $3 billion to middle-market companies. McGhee has also served in various leadership roles covering asset-based lending (ABL) at SunTrust, Citicorp, Bank South and Bank of America. McGhee sits on the board of directors for Piedmont Hospital in Atlanta and is an Elder at Peachtree Presbyterian Church. He holds a B.A. in economics from the University of Georgia.
Lessons Learned In Recent Consumer and Retail Brand Workouts and Liquidations
The rate of default and workouts for loans with IP assets as collateral has reached a crescendo. We examine the near-term implications for workouts and liquidations where IP assets are expected to provide a meaningful source of lender recovery, and the longer- term implications for commercial lending to retail and consumer brand companies.
Interview with SFNet’s New President Jeffrey Goldrich
Jeffrey Goldrich, SFNet’s 2021 president, has been in the asset-based lending and factoring business for over 40 years. He founded North Mill Capital, as its president and CEO, with its management group in 2010. In 1995 he co-founded, as a shareholder and COO, Business Alliance Capital Corp (BACC), a national commercial finance company based in Princeton, New Jersey. Goldrich and his partner sold BACC to Sovereign Bank (now Santander) in 2005.
Prior to that, he was a senior vice president and manager of the asset-based lending department of First Fidelity Bank in Newark, New Jersey.
SFNet 2020 President John DePledge Reflects on an Unprecedented Year
John DePledge, head of Asset Based Lending at Bank Leumi USA, discusses his tenure as SFNet president and COVID’s impact on plans.
Anatomy of a Deal: Special Situations, Split-Lien Term Loan with a Bank ABL
In the course of two weeks, SG Credit Partners (formerly Super G) went from first phone call to closing a complicated split-lien deal with a major bank ABL group. When you tell someone “we just closed another multi-lender transaction in less than two weeks,” the level of complexity, determination, and teamwork required to accomplish such a task, is rarely understood. This transaction provided a pay down to the senior lender, provided for critical payments to vendors and created liquidity for the company’s investment bank to run a refinancing process. Like most special-situation transactions, the initial loan was just the start, not the end. This Anatomy of a Deal will attempt to highlight the role of a non-bank credit fund, SG Credit Partners, partnering with conforming ABL.
Flexible Workplace Arrangements – Attracting and Retaining Talent in the Current Environment
The secured finance industry, just like so many others, has demanded that remote work become the “norm.” Will this change better enable the industry to attract and retain top talent?
The “New Normal” Roundtable
What challenges have industry executives been up against since the pandemic hit and what kind of future do they envision for the industry? TSL spoke with several SFNet members: Jason Hoefler, managing director/asset-based lending, BMO Harris Bank; Candice Hubert, senior vice president of business development, Republic Business Credit; Mark Polinsky, executive vice president and co-founder of Gateway Trade Funding; Georgia Quenby, partner, Morgan Lewis & Bockius; Stuart Rosenthal of Prestige Capital; and Dan Tortoriello, executive vice president/chief operating officer of North Mill Capital.
COVID-19 is popularizing asset-based lending. Here’s why.
Edward Gately of MUFG discusses the reasons for ABLs rise in popularity as a result of the pandemic.
(Almost) Painless Networking
Although experts generally agree that networking is important to career success, a surprisingly large number of professionals dread the process to the point that the mere mention of the word makes them anxious and irritated. Lynn Tanner of Winston and Strawn provides a detailed “cheat sheet” for taking the pain out of networking.
Reaching the Top: C-Suite Women in Secured Finance Roundtable
What does it take to break the proverbial glass ceiling in secured finance? What does the journey to the “top” look like for women in financial services? We interviewed four C-Suite women and here is what they had to say. The women we spoke with are Meredith Carter, president and CEO, Context Business Lending; Miin Chen, COO, Siena Lending Group; Deborah Monosson, president & CEO, Boston Financial & Equity Corporation; and Jennifer Yount, partner, Paul Hastings LLP.
Women Leaders Talk About Advancing in the Ranks
Secured Finance executives and an executive recruiter discuss how the industry can attract and retain more women.
Interview with Jennifer Palmer
In January, Gerber Finance announced the completion of its CEO succession strategy, naming longtime president Jennifer Palmer as CEO with Founder Gerald Joseph transitioning to his new role as strategic advisor and chairman of the board.
Innovation is Key to Survival for Factors
The CEO of TBS Factoring discusses the importance of innovation in factoring and how she applies the lessons of the past to her current role.
Interview with Ryan Jaskiewicz of 12five Capital, LLC
Ryan Jaskiewicz is CEO of 12five Capital, LLC. He started 12five Capital in early 2006 at the age of 23. Jaskiewicz attended University of Illinois at Chicago where he received a bachelor of arts in political science.
The UK Government Moves Closer to Potentially Damaging Legislation Impacting the UK ABL Industry and Its Clients
The UK Government announced 11th July 2019, through the publication of the Draft Finance Bill, that it is going ahead with the reinstatement of Crown Preference in respect of VAT and PAYE.
PNC Bank Provides Financing to Receipt & Labeling Solutions Provider
May 30, 2019
PNC Bank, National Association, announced the closing of a $90 million senior secured credit facility for Iconex LLC (Iconex), a portfolio company of Greenwich, CT-based Atlas Holdings. PNC’s facility was provided in conjunction with a $67.5 million term loan and a $30 million delayed draw term loan provided by Cerberus Business Finance.
Click on the link below to meet some of the “difference makers” in the secured finance community. This issue of The Secured Lender celebrates those who are having a profound impact on both their communities and their organizations.
Previous TSL Articles
Interview with Jim Cretella, Chair of Otterbourg’s Alternative and Specialty Finance Practice Group
In March, Otterbourg P.C. announced that James M. Cretella was named Chair of the firm’s Alternative and Specialty Finance Practice Group. A member of the firm’s Finance Department, Cretella represents lenders, factoring companies and other finance companies, as well as borrowers, in a variety of transactions.
Cretella has practiced at Otterbourg for his entire career and his experience encompasses financial transactions across a broad range of industries, including staffing, technology, transportation, oil and gas, and government contracting. His areas of focus include asset-based lending, supply chain finance, trade finance and specialty finance. He often acts as “outside in-house counsel” to finance companies and specialty lenders.
Cretella is a 2016 winner of the Secured Finance Network’s 40 Under 40 Awards.
Here he discusses his role and how the industry has evolved since he started.
Higher Education Under Pressure – Options for Struggling Institutions
Many higher education Trustees and executive leaders need to recognize that their communities must confront the early stages of a long-term restructuring. The upcoming transition is similar to the long-term restructuring process now being addressed by the retail and healthcare industries. The difficult landscape that colleges and universities must contend with didn’t just materialize – it has been a long time in the making.
Off Target: How the Main Street Loan Program Missed the Mark
At the 2004 Athens Olympics, American air-rifle shooter Matt Emmons, the reigning world champion in the 50-meter three-position event, held a seemingly insurmountable lead. Going into his final shot, Emmons was in first place and needed only a mediocre score to win gold. Emmons aimed, fired, and hit his target – the wrong target, one lane over. He received no score for that shot and finished in eighth place.
Emmons’ mistake illustrates the importance of aiming at the right target. In April of 2020, amid the COVID-19 pandemic, the Federal Reserve and the Treasury Department announced the Main Street Loan Program (the “MSLP”), which was designed to provide emergency liquidity to small and mid-sized businesses. Although well-intentioned, the MSLP, like Emmons, was aimed at the wrong target, and ultimately missed the mark.
WISF October Networking Event
Screen shots of the various First Place Teams from the Go Game festivities held on October 27. Attendees had a great time competing in trivia and lip syncing competitions.
SFNet WISF Career Corner
This is a new feature providing advice from WISF members to young professionals on a specific topic. We need your input. If you have a question you would like to see answered in this column, please submit to Michele Ocejo at firstname.lastname@example.org.
“Once you are established within a job and/or have already experienced some degree of internal growth, what additional steps would you recommend to continue career growth and development? Early in the career, there are multiple paths and opportunities an early career individual can pursue. However, once in the mid-level, the continued growth opportunities may not be as bountiful.”
Tradetech: Part of the 4th Industrial Revolution and Why We Need to Focus on SMEs.
The COVID-19 pandemic has had a devastating effect on the global economy and led to paralyzed supply chains, export restrictions and closed borders. This shock brought about several significant changes to a number of industries and accelerated existing trends such as automation, digitalization, supplier base diversification and supply chain operational efficiencies. Cross-border trade is at the center of everyone’s attention.
What Happened to the Back Room? A Discussion on Operations Management and Career Paths in Secured Finance Operations
What of back rooms?
One important thing that we have learned over the recent past, through our observations of societal upheaval and current events, is that words matter. Reflecting on the often-misleading references that are used in our lives, and industry, is an opportunity to open our minds, deepen our sensitivities, and expand our learning opportunities to what exists in our current collective reality.
I've often heard the term, back office, used by some ABL and/or other leaders within bank organizations. Users of this term surely do not intend to be offensive, however, it is an outdated reference that has no place in the more complex secured lending operations of today.
Interview with Bobbi Acord Noland, SFNet’s New Co-General Counsel
Bobbi Acord Noland is a partner at Parker Hudson Rainer & Dobbs LLP in Atlanta, Georgia. As head of the Commercial Finance practice, Bobbi guides global banks, regional banks and finance companies through domestic and cross-border transactions ranging from $5 million to more than $1 billion. She has handled practically every aspect of commercial lending, from single-lender deals to syndicated facilities involving multiple lenders, borrowers, creditors and multi-tiered debt tranches. In addition, Bobbi frequently advises her clients on workouts and restructurings.
Flight Rules for Risk Management - Top Takeaways from NASA's Norman Knight
A new year brings with it many unknowns, and this year is no exception. It remains to be seen how the pandemic will impact the industry in the year ahead, and companies are still evolving strategies and plans to address the increased uncertainty.
Norman Knight, Deputy Director of Flight Operations at NASA, is no stranger to the unknown. He specializes in human space flight, and he has seen everything in orbit. He spoke at SFNet's first-ever online Annual Convention in November 2020 to share what he has learned from his decades at NASA.
Knight shared advice about building a culture of technical truth, openly discussing mistakes to improve systems, and planning for the unimaginable. Here are a few flight rules he suggested for companies looking to manage risk and uncertainty in the year ahead.
SFNet Provides Summary of Economic Aid Act
The Consolidated Appropriations Act, 2021, an omnibus stimulus and budget act that includes the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (Economic Aid Act), was enacted on December 27, 2020. The Economic Aid Act amends, extends and expands several key stimulus programs as summarized below.
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