ABF Journal's Thought Leadership Podcast: Recent Episodes
ABF Journal
ABF Journal has launched a podcast series featuring real-time conversations with industry leaders to discuss pressing topics and offer insight into the future.
Earlier this year, Ares Management, one of the largest players in the asset and investment management space, announced its foray into the equipment finance space, as funds managed by its alternative credit strategy launched Ansley Park Capital, a new entity designed to deliver financing solutions in the large-ticket sector.
In a joint podcast from Monitor and ABF Journal, we we sat down with Joel Holsinger, partner and co-head of Ares Alternative Credit, and Eric Miller, Ansley’s Park Capital’s president and CEO, to learn more about the opportunities Ares sees in the sector and how the firm plans to approach the market.
We all want the world to be a better place. Beyond volunteering our time or donating to worthy causes, what else can the commercial finance industry do to further that goal? This podcast, a joint collaboration between Monitor and ABF Journal, provides a look into a commercial finance company that has created wins for its borrowers, the community it serves and its own bottom line.Sponsored by Mitsubishi HC Capital AmericaLearn more: https://landingca.mhccna.com/about-us_commercial_financing/?utm_source=abf_journal&utm_medium=premium&utm_term=podcast_banner&utm_content=970x250&utm_campaign=8459_impressions_annuelle_2023_en
How have rising interest rates affected capital raising? Has M&A activity picked up this year? What does the market look like for recapitalizations? Deborah Smith, co-founder and CEO of The CenterCap Group, a boutique real estate investment bank, joined the show to answer these questions and more from both a real estate and general market perspective.
In today's asset-based finance world, technology is often cited as a difference maker for financing providers, but technology can encompass a vast range of things. What specific technology solutions are actually out there and what can they actually do to help ABF providers (and, perhaps more importantly, what can't they do right now)?
Jeremy Tsui, the CEO of Finley, joined the show for this episode to discuss just that, diving into some of the operational complexity of ABF transactions while providing a reality check on the technological landscape in financial services, including a discussion about artificial intelligence.
The banking world endured multiple shockwaves this year with the collapse of Silicon Valley Bank, Signature Bank and First Republic Bank. To sort through the debris, Ric DiMonte, president of law firm Robbins DiMonte, joined the show to discuss the unique circumstances of these bank runs, how bank and non-bank ABL firms have and should adjust, and why he is still confident in the regional banking system.
All borrowers have a story, but they need to find the right financing partners to ensure their journeys continue successfully. In this episode, Ashley Whyman, president of equipment finance company NFS Leasing, and Eric Renaud, the firm’s chief credit officer, discuss the keys to providing financing to non-investment grade borrowers, why equipment finance companies and asset-based lenders are a perfect fit as partners and much more.
Most Innovative Companies Nomination Page: https://www.abfjournal.com/abfjournal-most-innovative-companies-nominations
With commercial finance disclosure laws in California having gone into effect late last year and others following in New York in other states in the near future, Bob Cohen, a partner at Morritt Hock Hamroff LLP, joined the show to explain the intricacies of these new regulations, how they could impact future legislation in other states and what it all means for lenders from across the sector.
With 2022 in the books, for the first episode of the new year, Joe Abruzzo, head of commercial banking at Santander Bank, joined the show to review the year in commercial banking and prepare for 2023. Abruzzo spoke about the many economic fluctuations of 2022, how severe a recession in 2023 may be and a lot more.
In the 72nd episode of the ABF Journal Podcast, Trishaala Ninan and Loren Shifrin of REV Capital joined the show to discuss the transformative year for the company, which rebranded in June and is out to reinvent factoring. During the conversation, Ninan and Shifrin discussed REV Capital’s approach to the market, the strategy behind it’s rebrand, their expectations for next year and a lot more.
In this week’s episode, Matt Little, a partner in global specialty finance and business development at Castlelake, discusses the many effects of rising inflation on consumer and commercial credit finance as well as other secular and cyclical trends in specialty finance, such as bank retrenchment and its impact on leveraged lending and a lot more.
In this week’s episode, Sengal Selassie, managing partner and CEO of Brightwood Capital Advisors joined the show to discuss Brightwood’s activity in the direct lending private investment space as well as what is means to earn an SBIC license, how Brightwood is handling recent labor challenges, the outlook for the franchising and transportation sectors and more.
In this week’s episode, Sarah Lindstrom, president and head of business banking at Citizens, discussed the findings of a survey from Citizens that explored the cash crunch many small and medium-sized businesses have endured during the last year. Lindstrom spoke about businesses raising prices due to unexpected cost increases, how strong cash reserves are important to help navigate economic fluctuations and how lenders can help these borrowers.
https://www.citizensbank.com/learning/2022-business-strategies.aspx
In this week’s episode, Peter Brady, national financial services leader at RSM, joined the show to talk about the emerging trend of micro-focused segmentation in the financial services industry. Brady discussed what is driving this trend, how it is changing the financial services sector, what financial institutions (especially commercial and specialty lenders) should be doing in response and a lot more.
This week’s episode is the second part of a conversation with Steven Smith of Herrick, Feinstein about the Supreme Court case of Siegel v. Fitzgerald, addressed whether a 2017 increase in the fees owed by Chapter 11 debtors to the Office of the U.S. Trustee created by the Bankruptcy Judgeship Act of 2017 was constitutional. In this episode, Smith delved into the outcome of the case, how it will affect bankruptcy law and what it will mean for creditors and debtors.
This week’s episode is the first part of a conversation with Steven Smith of Herrick, Feinstein LLP about the Supreme Court case of Siegel v. Fitzgerald, which will address whether a 2017 increase in the fees owed by Chapter 11 debtors to the Office of the U.S. Trustee created by the Bankruptcy Judgeship Act of 2017 is constitutional. In this episode, Smith provided a detailed look at the background of the issue at hand and the arguments on both sides. That will set up next week’s episode, where we’ll delve into which side Smith thinks is in the right, how the Supreme Court’s decision could affect bankruptcy law and what it will mean for creditors and debtors.
In this week’s episode, we looked at a unique perspective to the asset-based lending and private credit marketplace in a conversation with Sloan Sutta from Crayhill Capital Management. During the episode, Sutta discussed Crayhill’s niche definition of ABL and approach to the market, the increasingly larger role of credit funds in the sector and what to expect from the private credit market during the rest of 2022.
In this episode of the ABF Journal Podcast, we revisited the topic of supply chain disruption, but this time, we looked at it from the perspective of valuations. Joining us for the episode was Bill Soncini, national marketing manager for B. Riley Advisory Services, who is an expert in appraisal, valuations and client relations, among other things. In the interview, Soncini looked at how supply chain disruptions are impacting valuations, specifically inventory valuations, and what asset-based lenders can do to support borrowers.
In this week’s episode, we continue to look at the supply chain, particularly in the wake of the crisis in Ukraine. Jeff Pielusko and Peter J. Keogh of Carl Marks Advisors provided insight on this topic, explaining how the war is creating surging commodity prices and scarcity of materials, particularly food and earth minerals, and what companies need to do to fortify their supply chain networks in the face of such upheaval. We also looked at what lenders can do for borrowers in this environment and why some capital finance and asset-based lenders may be at particular risk.
In the 62nd episode of the ABF Journal Podcast, John Whalen, head of the capital advisory practice at Matrix Capital Markets Group, provided insights about the past, present and future of capital raising. Whalen looked at trends from the first quarter, expectations for the rest of 2022, how the capital structure has changed in the last decade (particularly during the COVID-19 pandemic) and how asset-based lenders should navigate the market.
In the 61st episode of the ABF Journal Podcast, Jon Hughes, Senior ABL Director at Independent Growth Finance, gives us an overview of the history and current state of the asset-based lending industry in the United Kingdom and how IGF uses a specialist approach to capitalize on opportunities in the market. In addition, Hughes shared how other lenders can benefit from working with IGF if they are interested in doing business in the region.
The transition from the London Interbank Offered Rate, otherwise known as LIBOR, has been in the works for quite a while, but we’re reaching crunch time for lenders to move on to the Secured Overnight Financing Rate (or some other such alternative rate). In this episode, Daniel Ford of Thompson Coburn Hahn & Hessen clears up some of the misconceptions about the transition, outlines which lenders are well prepared for it and lays out a game plan for those who are not.
In the first episode of season three and the 59th episode overall of the ABF Journal Podcast, Andy Sachs and Ric DiMonte joined the program to discuss the recent merger of Chicago law firms Robbins, Salomon & Patt and DiMonte & Lizak to form Robbins DiMonte. Sachs, who is the CEO of the new firm, and DiMonte, who is the firm’s president, discussed the entire merger process from start to finish and what the combined company expects to achieve in the years to come.
In the 58th episode of the ABF Journal Podcast, David Magdol, president and chief investment officer of Main Street Capital, looked back at the year in private equity and provided an outlook for the sector in 2022. During the interview, Magdol touched on recent supply chain disruption, the rising popularity of special purpose acquisition companies and why private equity firms are increasingly interested in unitranche financing facilities.
In the 57th episode of the ABF Journal Podcast, Jake Sussman, a vice president at Arena Investors, stopped by to discuss the benefits of infusing private equity sensibilities into the structuring of private debt transactions. Sussman also delved into the world of corporate asset-based lending and the keys to successful joint ventures and co-investments before providing an outlook for the private debt marketplace in early 2022.
The supply chain has been a consistent source of conversation across industries during the COVID-19 pandemic, with hurdles impacting every point of contact. As this trend has persisted, supply chain finance has become an increasingly scrutinized industry and with more scrutiny comes the potential for more regulation.
In the 55th episode of the ABF Journal Podcast, Greg Byrnes, CFO of White Oak Aviation, joined the show to detail the opportunities and risks associated with direct lending to the aviation sector. With many years of experience in aircraft leasing, Byrnes brings a unique perspective to this emerging market and discusses how the aviation industry is recovering from the drastic downturn created by the COVID-19 pandemic as well as why direct lending is perfect for this space.
In the 54th episode of the ABF Journal Podcast, Lee Haskin, CEO of Crossroads Financial, provided insight into the inventory lending vertical, specifically discussing how the industry has changed over the last 15 years in the wake of drastic shifts in consumer behavior, as well as a look at Crossroads’ approach to this market and its strategies for growth in the near and long-term future.
In the 53rd episode of the ABF Journal Podcast, Scott Winicour, CEO of Gibraltar Business Capital, shares his perspective on building and maintaining a strong internal identity through a dedicated focus on company culture. Winicour dives into leadership lessons about culture before and during the COVID-19 pandemic, the importance of using the interview process to find employees who are the right cultural fit and ways ABL leaders can improve along their own culture journeys.
In the 52nd episode of the ABF Journal Podcast. Jordan Suppan, managing director of Leste Credit, stopped by to discuss direct real estate lending, specifically outlining why preferred equity and smaller transactions are becoming more popular in the space, what current rates of return in the market are looking like in 2021 and a lot more.
In the 51st episode of the ABF Journal Podcast, Ted Koenig, President & CEO of Monroe Capital, makes his second appearance on the show as he discusses how the private markets have provided more stability than the public markets during the COVID-19 pandemic as well as other trends and factors influencing activity in alternative asset classes.
In the 50th episode of the ABF Journal Podcast, Cheryl Carner, senior managing director and head of originations at SLR Credit Solutions, explained how SLR is approaching the rampant demand for growth financing in the current environment, specifically detailing the company’s approach to structuring this type of financing and partnering with businesses to help them succeed.
In the 49th episode of the ABF Journal Podcast, Richard Cabrera, executive vice president and head of middle market banking at Umpqua Bank, took some time to break down the findings of the bank’s recently released 2021 Business Barometer, including the growing optimism among middle market businesses, an expected rise in M&A activity and challenges in commercial real estate, staffing and the supply chain. https://www.abfjournal.com/dailynews/umpqua-bank-survey-shows-surging-optimism-transformational-shifts-in-middle-market/
In the 48th episode of the ABF Journal Podcast, Glenn McMahon, managing director of the consumer retail practice at Portage Point Partners, and Tom Park, managing director at Portage Point Partners, join the show to explain how “experiential retail” can bolster the long-term prospects of physical stores. They also discuss what lenders should know about these kinds of offerings and what they mean for the commercial real estate sector before diving into a more board look at the retail space.
In the 47th episode of the ABF Journal Podcast, Cassandra Rivilla-Lutterkort, executive director of the origination team at Pemberton, discussed the rise of direct lending in the UK and how this financing type has become particularly popular in the region. During the episode, Rivilla-Lutterkort extrapolated on a recent report from Pemberton to explain how direct lending has developed in the UK and Europe, how the industry fared in 2020 and why the market will be “buoyant” in the next few years.
In the 46th episode of the ABF Journal Podcast, Michael Mikhail, CEO and founder of Stratton Equities, broke down the differences between soft money and hard money loans, looked at how the COVID-19 pandemic has affected the commercial real estate market and provided advice for real estate investors in the current market.
In the 45th episode of the ABF Journal Podcast, Eric Kinney, senior vice president of risk and Bank Secrecy Act officer for Oxygen, outlined some of the fraudulent behaviors perpetuated across the financial services industry in relation to the Paycheck Protection Program and how those practices are being investigated. In addition, Kinney spoke about fraud in the financial services sector more generally, including how the COVID-19 pandemic has exposed weaknesses in the ability to protect against and detect fraud and how cyber risk is evolving in line with a rise in digital lending platforms.
In the 44th episode of the ABF Journal Podcast, Andrew Glenn, managing partner of Glenn Agre Bergman & Fuentes, joined the show to discuss the outcome of Hertz’s Chapter 11 bankruptcy case following the company’s recent receipt of bankruptcy court approval of its plan of reorganization. Glenn discussed the compressed timeline, unique challenges and important milestones of the company’s reorganization as well as the “unprecedented” recovery for shareholders.
For the 43rd episode of the ABF Journal Podcast, Rohit Arora, CEO of Biz2Credit, returns to the show nearly a year to the day since his first appearance to take a look at the shifts in small business lending demand and approval rates during the last 12 months, including a breakdown of the findings from Biz2Credit’s most recent small business lending index.
In a special midweek episode of the ABF Journal Podcast, Ray Wizbowski, chief marketing officer of IDS, joined the program to discuss technology reshaping secured finance. Wizbowski, who will be moderating our next livestream event this Thursday at 1 p.m. EST, discussed business agility for secured finance companies, disruptors in the industry as well as technology requirements for lenders to keep up with evolving borrower expectations. To register for ABF Journal’s next free livestream, “Adapt or Fail: Technology Reshaping Secured Finance,” please click here: https://www.abfjournal.com/conference/livestream-adapt-or-fail-technology-reshaping-secured-finance
For the 41st episode of the ABF Journal Podcast, Juanita Schwartzkopf, senior managing director at Focus Management Group, provided an in-depth guide to refinancing, including the most important steps of the process and its benefits for borrowers and lenders, as well as an overview of recent trends.
For the 40th episode of the ABF Journal Podcast, Scott Avila, a partner at Paladin, stopped by to provide his insights on activity in the bankruptcy and restructuring sectors during the first third of 2021. Avila provided a general overview and looked at what industries have been most active in the space, how government actions have made an impact and what to expect during the back half of the year.
In the 39th episode of the ABF Journal Podcast, Nate Volz, a partner at Husch Blackwell, joined the show to discuss the Main Street Lending Program. Volz laid out some of the shortcomings of the program, both in its design and execution, as well as some things it got right. Volz also shared some considerations for the future for lenders that provided financing through the program.
In the 38th episode of the ABF Journal Podcast, Chris Parisi, managing director of Carl Marks Advisors, discussed some of the trends in the M&A market during the first quarter and the catalysts for the rest of the year, including dry powder in private equity, better credit conditions and a rise in add-on acquisitions.
In the 37th episode of the ABF Journal Podcast, Diana H. Psarras, a shareholder with Robbins, Salomon and Patt, explored the different approaches to working with secured and unsecured creditors from a commercial litigation perspective. She also outlined legal hurdles for each type of capital provider and looked out how the legal landscape may change for them in the future.
In the 36th episode of the ABF Journal Podcast, Tom Majewski, managing partner at Eagle Point Credit Management, gave a comprehensive overview of collateralized loan obligations, including a look at their historical performance in times of economic distress. He also shared his thoughts on rising activity in this space and how he thinks CLOs will fare in the years to come.
In the 35th episode of the ABF Journal Podcast, James Hanson, managing director of Opportune LLP, provides a deep dive on solvency and fairness opinions. He shared best practices for attaining these opinions and also explained their benefits during the restructuring process.
In the 34th episode of the ABF Journal Podcast, Todd Koretzky, a partner at Allen & Overy, took a look at why the leveraged finance world sees infrastructure as a valuable asset class and what that means for the private debt market.
Dwayne Hyzak of Main Street Capital stopped by for the 33rd episode of the ABF Journal Podcast to discuss how private equity and private debt are being allocated during the first half of 2021. He also shared some insights on the M&A landscape and contextualized what it all means for commercial lenders.
In the 32nd episode of the ABF Journal Podcast, Stephen Wrobel, managing director of Hilco Corporate Finance, discussed the evolution of debt and equity capital raising during the first 12 months of the COVID-19 pandemic, outlining challenges and opportunities as well as providing a look at what’s to come in the next few months.
In the 31st episode of the ABF Journal Podcast, Jennifer Palmer and Entela Semini of Gerber Finance joined the program to discuss Gerber Finance’s new initiative for supporting women-owned businesses as well as the company’s own emphasis on providing career paths for women in asset-based lending.
In the 30th episode of the ABF Journal podcast. Harold Bordwin, principal and managing director of Keen-Summit Capital Partners, shared insights on how the shift to working from home (and the COVID-19 pandemic in general) has affected and will continue to affect the commercial real estate market, particularly as it pertains to lease concessions, adjustments, valuations and terminations.
In the 29th episode of the ABF Journal Podcast, we took a look at Dwight Funding’s recent personnel moves for its business development team in conversations with Jessica Bates, who recently became managing director and head of business development, and Duy Nguyen, who recently joined the company as a director of business development. Both Bates and Nguyen discussed their careers and their plans for their new roles.
In the 28th episode of the ABF Journal Podcast, Michael Sandnes, director at EisnerAmper, discussed the best strategies to help healthcare organizations entering Chapter 11 bankruptcy. He outlined how the COVID-19 pandemic has made this a larger and more complex problem while offering guidance on how to traverse the current environment.
In the 27th episode of the ABF Journal Podcast, Michael C. Eisenband, global co-leader of corporate finance and restructuring for FTI Consulting, discussed the many contrasts of 2020, including the disparity between Main Street and Wall Street. He also shared his thoughts on trends in employment and bankruptcy filings and urged stakeholders not to “write off this default cycle.”
In the 26th episode of the ABF Journal podcast, Doug Monticciolo, CEO of Brevet Capital, discussed the role private credit has played in COVID-19 testing and the potential role it could take in helping with vaccine distribution and recovery once the pandemic begins to subside.
In the 25th episode of the ABF Journal podcast, Andre Hakkak, CEO and co-founder of White Oak Global Advisors, stopped by to give his thoughts on the current private debt market. He gave an overview of 2020 and the first few weeks of 2021 and highlighted potential opportunities and risks across the direct lending spectrum for the rest of this year.
For the 24th episode of the ABF Journal Podcast, Gary Mendell, president of Meridian Finance Group, discussed the rise of credit demand over the last 12 months and the challenges suppliers and their lenders have faced in trying to meet it. He also dove into how credit insurance can be a helpful tool to mitigate nonpayment risks.
The ABF Journal Podcast is back for its second season. In the first episode of 2021, Doug Winget joined the program to discuss his outlook for the asset-based lending industry in 2021, Huntington’s recent office openings on the West Coast and the impact of a second round of federal COVID-19 relief on the industry.
In the 21st episode of the ABF Journal podcast, Robert Marinaro, head of product, credit, at Allvue Systems, joined the show to share his insights on the distressed debt market in 2020 as well as Allvue’s first year in business since forming as a combination of Black Mountain Systems and AltaReturn. He said distressed debt has been a “huge piece of the market” this year as LPs provide capital to help companies bridge their way through the COVID-19 pandemic. He also shared how important being technically-focused can be for those in the distressed debt space, especially since activity within the industry should continue for some time.
In the 22nd episode of the ABF Journal podcast, Jennifer Palmer, who took over as CEO at the beginning of this year, shared how she’s focused on “protecting the book” and maintaining a high-touch approach to service through the COVID-19 pandemic. She also provided details on Gerber Finance’s new natural products division, how her unique perspective will help the company be a financial partner for woman-owned businesses, and her thoughts on the future for Gerber and the asset-based lending industry at large.
In the 20th episode of the ABF Journal podcast, Carey Davidson, managing director and head of capital markets at Monroe Capital, provided an update on what has been a bit of a rollercoaster year in the capital markets, which were robust early on, came to a near complete stop in mid-March and have slowly improved since. She also discussed trends that have developed such as an increase in non-sponsored deals and “clubbing” activity.
In the 19th episode of the ABF Journal podcast, Meredith Carter, president and CEO of Context Business Lending, discussed how she has utilized her skills and knowledge along with a data and technology-driven approach to help accelerate the growth of Context Business Lending and its mission of reinventing how ABL is done in today’s world. She also provided details on the company’s unique co-chief credit officer structure as well as her expectations for the ABL industry at large for the remainder of 2020.
In the 17th episode of the ABF Journal podcast, Sandor Jacobson, a principal at Plante Moran, explained why an assignment for the benefit of creditors, or an ABC, is an important and attractive tool for distressed middle market companies due to its efficiency and low cost. He also outlined the most important steps in an ABC and discussed how this path differs and is potentially more favorable than a bankruptcy proceeding.
https://www.abfjournal.com/articles/an-alternative-to-bankruptcy-when-winding-down-a-distressed-company/
In the 16th episode of the ABF Journal podcast, Lisa Galeota, managing director of First Eagle Alternative Credit, and Larry Klaff, senior managing director and head of asset-based loans First Eagle Alternative Credit explained why ABL was a natural extension for First Eagle and how they will use their respective expertise in the industry, including time at Gordon Brothers Finance Company, to build out this new group. They also spoke about the importance of proprietary deal flow, the challenges of joining a new company in the middle of a pandemic, and their goals and expectations for the next few months.
This podcast is provided for informational purposes only and is not intended as an offer or solicitation for the purchase or sale of any security, nor to enter into any agreement or contract with First Eagle Alternative Credit or any of its affiliates or managed funds. The statements therein are not investment advice. Analyses and opinions contained herein may be based on assumptions that if altered can change the analyses or opinions expressed. Nothing contained herein shall constitute any representation or warranty as to future performance of any financial instrument, credit, currency rate or other market or economic measure. Statements are made as of the date of the podcast and will not be subsequently updated.
In the 15th episode of the ABF Journal podcast, John Brignola, co-founder and senior managing partner of LBC Credit Partners, discussed how LBC’s new deal pipeline and M&A activity in general has recovered since cratering in the early days of the COVID-19 pandemic. He also explained how this environment has created new areas of diligence, changes to leverage points and capitalization, and increased scrutiny for consumer service businesses.
With the acquisition of companies like Gerber Finance and the North American operations of Bibby Financial Services, eCapital has really made a name for itself. In fact, by rebranding, the company formerly known as Global Merchant Fund has quite literally made a name for itself.
In the 14h episode of the ABF Journal podcast, Bruce Sim, head of acquisitions at eCapital, joined the program to discuss the M&A landscape, his company’s rebrand and its approach to acquiring and supporting companies, including the recent acquisition of Prosperity Funding.
Sim predicted an increase in M&A activity as soon as the end of Q3/20 and also shared how eCapital looks to add successful platforms — not just attractive portfolios — while providing capital raising that allows companies to stick to their specialties. Lastly, he shared some advice for would-be sellers, including the importance of transparency.
The economic recovery from the COVID-19 pandemic is only just beginning, but
May was a slightly better month than April for small business borrowers, at least in terms of lending approval rates.
In the 12th episode of ABF Journal’s COVID-19-focused podcast series, Rohit Arora, CEO of Biz2Credit, provided his perspective on small business lending during the first five months of 2020, including the drastic decline in April and the marginal increase in May.
Arora explained that the supply is there and that lenders are looking to deploy capital, but that slowed demand has led to large decreases in lending. He outlined how the Paycheck Protection Program has been a “game changer” and how small businesses have quickly become accustomed to digital offerings, which will force a “paradigm shift” in the lending space.
Arora warned that big banks and alternative lenders may struggle in the coming months while small banks find a bit more success. However, he advised all institutions to become nimble, cut fixed costs and invest in technology to ensure a quicker rebound, even if he doesn’t expect full recovery until 2021.
As far as technology has come, people are still behind the deals made in the asset-based lending business. That business is only going to be more active in the coming months, which means being adequately staffed will be a critical challenge for lenders.
In the 11th episode of the ABF Journal’s COVID-19-focused podcast series, Doug Winget, president of Huntington Business Credit, joined the program to discuss his expectations for a surge in demand for asset-based lending over the next 18 months and why this will require companies to address a talent shortage within the industry.
Winget explained why a strong pre-pandemic economy and a migration to a cash flow model led to this shortage and outlined areas where asset-based lenders will need to aggressively scale up in terms of staffing, including new business portfolio, underwriting, collateral analysis and field examination. He noted that companies will have to be creative and recruit people from within their organizations with a cross-set of experience and/or look to more traditional lenders to attract talent.
Looking internally, Winget spoke about the experience of doing business in a state that has reopened much of its economy and how Huntington Business Credit is operating in the current environment.
Even as some states force open the U.S. economy, the economic ramifications of the COVID-19 pandemic will continue to be felt, particularly in the area of bankruptcy and restructuring. With companies across most sectors feeling some degree of damage from the pandemic, bankruptcy filings will continue to increase.
In the 10th episode of the ABF Journal’s COVID-19-focused podcast series, Cynthia Romano and Kevin P. Clancy, who are both global directors of the restructuring and dispute resolution practice at CohnReznick, gave a deep dive on bankruptcy and restructuring in the age of COVID-19.
They described how the “frantic activity” of the first few weeks of the pandemic has shifted to a more contemplative approach, with companies assessing their situation and determining what options and opportunities are available. They also said they expect even more upticks in bankruptcy and restructuring activity, although in waves across sectors, and that such waves will put a strain on the bankruptcy court system, which is being forced to adapt in a challenging environment.
From the lender perspective, Romano and Clancy outlined how cash, communication and control are the three most important factors for the borrower/lender relationship in this environment. They advised lenders to take stock of their portfolios and make assessments based on historical performance and projections to avoid “knee jerk” reactions. They also explained why lenders should be looking more closely at the supply chain of borrowers and why companies who are innovating and adapting based on this disruption may be the best lending prospects.
The economic upheaval of the COVID-19 pandemic has led some companies to convert their cash-flow based credit facilities to asset-based facilities.
In the ninth episode of ABF Journal’s COVID-19-focused podcast series, Ed Gately, head of asset-based finance at Mitsubishi UFJ Financial Group or MUFG, discussed this trend and the benefits of converting to an asset-based structure, including the level of comfort it provides to lenders due to collateral protection. Gately further explained why borrowers often stick with asset-based deals once they convert.
In addition, Gately said that after a rush in March and April, there has been a decline in drawdown requests in May. He also spoke about anti-cash hoarding provisions and changes in pricing terms, and speculated about the challenges created by a “new normal.”
In the eighth episode of ABF Journal’s COVID-19-focused podcast series, Andy Sachs, chief operating officer of Robbins, Salomon and Patt, shared his take on these topics and much more.
More specifically, he discussed how the pandemic has been a double-edged sword for non-bank asset-based lenders and reversed trends from the beginning of the year.
Sachs also spoke about how the PPP may affect interest income and deal flow for lenders, why the second run should last longer and how expanded access to the PPP Liquidity Facility will be particularly beneficial for private small business lenders.
As far as the reopening of the economy and a potential second spike of the virus, much like Ted Koening mentioned in last week’s episode, Sachs emphasized the importance of dry powder and liquidity.
The focus of episode six of ABF Journal’s COVID-19-focused podcast series is factoring. To get a handle on how this industry is faring in the current environment, Robyn Barrett, managing member of FSW Funding, joined the program. She explained why factors are in a position to “shine” because they are intimately familiar with collateral and are in “constant contact with debtors.” She also said that as banks increase loss provisions and exit deals, factors will present an attractive lending option to borrowers who lose their banking relationships.
Due to the ever-evolving environment created by the COVID-19 pandemic, asset-based lenders and their borrowers are attempting to adjust and survive, with some finding more success than others.
In the fifth episode of ABF Journal’s COVID-19-focused podcast series, Dan Kane, co-founder and managing member of Tiger Capital Group, joined the program and spoke about a wide variety of topics, including why junior debt and mezzanine lending is scary right now, where ABL lenders are focused and how Tiger is relying more on data and experience for appraisals. He also shared some thoughts on retail dispositions and plans for when business gets back to normal.
For more insights from Tiger, you can visit the company’s industry page.
The COVID-19 pandemic has made life more difficult for many businesses, industries and asset classes. Such disruption will be reflected in the valuation space, which is the focus of the fourth episode of ABF Journal’s COVID-19-focused podcast series.
The episode features a discussion with Chris Carmosino, president of valuations at Gordon Brothers. As an expert in the valuation space, Carmosino outlined how to tackle the process from home, emphasizing the importance of communication, both now and when in-person valuations return. He also spoke about the pandemic’s potential long-term effects on performing valuations, consumer behaviors and M&A activity.
If you’d like to hear more from Carmosino, you can listen to Gordon Brother’s Added Value podcast here: https://www.gordonbrothers.com/insights/podcasts/covid-19-adaptations-to-valuations
There have already been drastic business ramifications of the COVID-19 pandemic, and more dangers may lurk ahead. In such an environment, there are legal effects to consider as well. For many companies, including asset-based lenders, taking a look at the situation from such a perspective will be critical.
In this episode, Jeffrey A. Wurst, a senior partner at Ruskin Moscou Faltischek and a long-time contributor to the ABF Journal, shared some of the silver linings of working from home as well as his expectation of an uptick in bankruptcy filings from mainstream middle market companies and a return to “old fashioned bankruptcy.” He also spoke about what the federal stimulus package could mean for lending and bankruptcy.
In the second episode of ABF Journal’s podcast, Brett Hickey, founder and CEO of Star Mountain Capital, outlines how companies with locked revenues and deferred payments are being affected by the COVID-19 pandemic. In addition, he shares why bridge financing is becoming a popular structure in this environment.
In our first podcast of the series, Vince Belcastro, Group Head of Syndications at Element Fleet Management, and Chris Enbom, CEO of AP Equipment Financing and Work Truck Direct discuss the early effects of the coronavirus on the industry, how their companies are adapting and the potential impact on various sectors and markets.