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Publisher Ron Caruso has been reporting on the equipment financing industry for more than 25 years. Pulse features his knowledgeable analysis of news, trends and current economic or regulatory issues having an impact on commercial financing.
Pulse also features people in the news, business opportunities and Ron's personal wine recommendations.
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Recent Editions
September 1, 2006
September 15, 2006
Business News Impacting the Leasing Industry
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BALBOA CAPITAL RELEASES COMPASS VERSION 2.0 |
| (Irvine, CA) Balboa Capital announces the general release of version
2.0 of Compass, its online lease processing system for Brokers and
Vendors. This new version includes an enhanced user interface and new
features designed to improve access to information as well as provide
real-time status updates. The version is live as of September 1, 2006. One of the important new features is the ‘Funding Check List’. Users can access real-time updates and comments from their funders regarding the status of their transaction in funding. Posting the information real-time in Compass limits the reliance on phone calls, voice mails, and lengthy emails in order to respond to customer needs. Also included is a new ‘Sales Tax Info’ table that allows users to more accurately apply local sales tax. “We recently completed a broker survey and there was a demand for more real-time information. We were able to respond with this release of Compass,” said Curt Lysne, Chief Sales Officer for Balboa Capital. Other enhancements improve navigation, search capabilities, tracking and reporting. Compass was first released in January of 2005 to provide partners with a complete user-centric lease management tool. By automating the application process and delivering it on-line, Balboa has been able to provide faster, more efficient processing of transactions, better communication and greater customer service. |
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Bryn Mawr Bank forms leasing subsidiary |
| Bryn Mawr Bank, parent of The Bryn Mawr Trust Co., disclosed earlier
this week that it formed BMT Leasing Inc., a wholly owned subsidiary
that will engage in equipment leases ranging from $5,000 to $150,000 on
a local, regional and national level. The new company will operate as
Bryn Mawr Equipment Leasing. It will also operate as a lease-funding
source, using the trade name of Bryn Mawr Funding. The company disclosed that James A. Zelinskie Jr. will be the subsidiary's president. He was a founding principal of Hamilton National Leasing in 1988, which was later acquired by First Lease, part of FirstTrust Savings Bank of Conshohocken, Pa. Ted Peters, chairman and CEO of Bryn Mawr Bank, said the leasing
company will be a high-margin niche business for Bryn Mawr Bank. |
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CIT Group to Acquire Barclays Leasing Operations |
| It was recently reported in the British press that5 UK-based finance company Barclays has entered into exclusive talks with CIT for the sale of its leasing and vendor finance operations. The operating units that are the subject of the sale include Barclays Business Banking in both the UK and Germany. The projected value of the transaction is estimated to be $2.3 billion. |
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Equipment Leasing Association Annual Survey Results Indicate Strong Performance of Commercial Finance Sector Overall Growth in New Business Volume, Improved Profitability Over Previous Year |
| The Equipment Leasing Association (ELA) earlier this week released
the results of its 2006 Survey of Industry Activity (SIA) report which
shows strong equipment leasing and financing performance in the
commercial finance sector. Survey respondents report a record annual
volume increase, depicting a positive outlook for U.S. businesses as
they continue to invest in capital equipment.
New business volume in 2005, as reported by the respondents, was more than $103.7 billion. This is an increase of 10.3 percent over the 2004 annual volume of $94 billion conducted by the same 130 members who provided year-over-year data. Industry member respondents also report that profitability remains strong as seen by an average return on equity (ROE) and return on assets (ROA), of 14 percent and 1.7 percent respectively. ROE was stronger in 2005 than in the previous year, while ROA remained steady. "The robust performance of the equipment leasing and finance sector is mirroring the optimism of U.S. business," said ELA Chairman Paul A. Larkins and President and CEO of Key Equipment Finance. "Growth trends show U.S. companies are expecting to expand through (at least) 2007. The surge in annual originations indicates businesses are engaged and preparing for this continued growth." ELA President Kenneth E. Bentsen, Jr. said, "The 2005 data would indicate that U.S. businesses remained sufficiently optimistic to expand expenditures for capital equipment over a multi-year horizon. And our research shows that trend has continued into 2006." The association's MLI-25(1), the index of 25 commercial equipment leasing and finance companies surveyed each month, indicates the 2005 growth trend has continued through the first six months of 2006. Other key SIA findings show lease financing's performance within the commercial finance and capital formation sector: -- Performance. Leasing and finance organizations report average charge-offs are 1.0 percent of the average net lease receivables balance, a healthy decrease from 1.5 percent in 2004. Charge-offs are at their lowest since 2001. -- Profitability. Pre-tax yield increased to 7.4 percent, up from 6.8 percent in 2004. At the same time, the cost of funds grew to 4.23 percent. -- Strong Credit Management. 97.9 percent of average net investment are current (less than 30 days past due) - of the total net investment, only 0.8 percent is more than 90 days past due. Rick Wolfert, Vice Chairman, CIT, Commercial Finance, added, "Data from survey respondents provide fresh evidence that, four years into an economic recovery, there continues to be high liquidity in the marketplace, which is exerting downward pressure on margins. Thin margins typify a competitive leasing and finance marketplace. The silver lining here can be found in margin pressure being partially offset by historically low charge-offs and delinquencies." Industries: Winners and Losers -- Corporate aircraft having the largest gain as survey respondents reported 9.4 percent of total volume was comprised of this asset type in 2005. This is significantly up from 2004 (2.4 percent). -- Rail was up to 3.6 percent in 2005 compared to 1.6 percent the year before. -- Trucks & Trailers rose from 9.9 percent in 2004 to 10.5 percent in 2005. -- Agriculture increased in 2005 to 6.1 percent from 5.9 percent in the previous year. The greatest decreases were in construction equipment (7.9 percent in 2005 compared to 9.8 percent in 2004) and commercial aircraft (1.1 percent in 2005 compared to 4.7 percent in 2004). About the 2006 Survey of Industry Activity Equipment types financed, as explored in the survey, include agriculture, aircraft, construction, computers, telecommunications, railroad, printing, medical, industrial, trucks and trailers and more. Type of financing offered by the leasing and finance companies include tax-oriented finance leasing, short-term operating leases, leveraged leases, conditional sales agreements, off-balance sheet loans and tax-exempt leasing. Leasing and finance industry members and other interested parties may obtain a full copy of the ELA Survey of Industry Activity, 2006, through the ELA online store at www.ELAOnline.com/store. |
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FED MAINTAINS STATUS QUO |
| In a 10-1 vote, Fed officials left their target for short-term
interest rates at 5.25%, the highest in nearly six years. Following the legacy of Alan Greenspan the Fed statement went on to caution that “inflation risks remain” and said the “extent and timing of any additional (rate) firming that may be needed” would depend on incoming data. This of course left economists in a position of trying to divine future Fed intentions. With some believing the Fed will raise rates again in the next six months and others believing the Fed will maintain the current level into the first quarter of ’07, absent some major economic change or event. |
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Greenbrier Purchases Assets of Rail Car America |
| Acquisition Strengthens Greenbrier's Leadership in Intermodal,
Railcar Repair, Refurbishment and Replacement Parts The Greenbrier Companies (NYSE: GBX) announced that it has purchased substantially all of the operating assets of Rail Car America, Inc. (RCA), its American Hydraulics division, and its wholly-owned subsidiary, Brandon Corp. RCA is a leading provider of intermodal and conventional railcar repair services in North America, operating from four repair facilities throughout the U.S. RCA also reconditions and repairs end-of-railcar cushioning units through its American Hydraulics (AH) division, and operates a switching railroad in Nebraska through Brandon Corp. The purchase price of the acquisition is approximately $34 million in cash. RCA currently generates nearly $40 million in annual
revenues with a William A. Furman, president and chief executive officer, said, "We |
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MAPI Report: Manufacturing Sector to Face “Pronounced Slowing” in 2007 |
| According to the Manufacturers Alliance/MAPI Quarterly Industrial
Outlook--Second Quarter 2006, (a report that analyzes 27 major
industries), moderate acceleration in the manufacturing sector in 2006
will likely be followed by pronounced slowing in 2007. The report
projects that manufacturing industrial production will grow 5% in 2006
before decelerating to 2.5% growth in 2007. Manufacturing industrial
production grew 3.9% in 2005. The report disclosed that top industry performers in the second quarter, recording year-over-year double-digit growth, were mining and oil and gas field machinery (44%); communications equipment (34%); construction machinery (20%); oil and gas well drilling (19%); iron and steel products (19%); aerospace products and parts (16%); electrical equipment (16%); navigational, measuring, electromedical, and control instruments (15%); material handling equipment (15%); and semiconductors (11%). Daniel J. Meckstroth, Ph.D., Manufacturers Alliance/MAPI Chief Economist and author of the analysis, writes that nine industries are in the accelerating growth (recovery) phase of the business cycle; 11 are in the decelerating growth (expansion) phase; four industries appear to be in the accelerating decline (either early recession or mid-recession) phase; and three are in the decelerating decline (late recession or very mild recession) phase of the cycle. "Manufacturing has been growing much faster than the general economy since the fourth quarter of 2005," Meckstroth said. "The strength of the expansion in the goods sector created concerns about supply availability within the manufacturing industry which encouraged inventory rebuilding, adding to the momentum. The industrial rebound in Europe and Japan has improved export demand." The report also offers economic forecasts for 24 of the 27 industries for 2006 and 2007. "The big-ticket consumer items have already started to falter. Housing starts and motor vehicle sales will decline this year," Meckstroth explained. "Although the production of capital equipment will continue to lead industrial activity, the equipment that uses diesel engines is expected to experience a strong 2006 followed by a decline in production activity next year. New emission control regulations have created an incentive to buy now because the new engines will be more costly." |
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Mitsui to Acquire Siemens European Railcar Leasing Business |
| Mitsui & Co. disclosed yesterday that it has agreed with Siemens to
buy the industrial firm's locomotive rental business, Dispolok, as well
as $213 million worth of electric locomotives. Mitsui, Japan's second-biggest trading house, sells rolling stock and builds railway systems in Europe, and it has been beefing up its railway operations and equipment leasing businesses as part of a drive to develop infrastructure businesses around the world. The company has said it sees large potential for the railway business in Europe due to growing demand for public transport in light of environmental considerations, the expansion of the European Union and the ongoing privatisation and liberalisation of the railway sector. Mitsui already has a locomotive leasing company in Amsterdam, set up
in 2004. With Dispolok, it would own some 150 locomotives. The Japanese
company also said it would additionally buy 50 electrical locomotives
from Siemens, worth about 25 billion yen ($213.4 million). |
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Oil Projects Idle as Supply of Gear, Staff Runs Dry, Leasing Rates Soar |
| A global shortage of oil-patch equipment has caused a two-year delay
in plans by Petrobras to drill wells that would confirm early test
results on the vast Tayrona field. "The bottleneck is certainly delaying
Colombia's energy development," said Petrobras' Colombia chief, Dirceu
Abrahao. David Stangor, president of Occidental Petroleum Corp.'s operation in Colombia, added: "Prices for oil-field services and goods have steadily ratcheted up, as have delivery times.”. The drilling rigs, seismic equipment, technical personnel and other necessities of oil exploration have become so scarce that Colombia and other oil producers are being forced to idle key oil projects until they can scrape together the machinery and staffing. Hold-ups of more than a year are common. Last week, San Ramon, Calif.-based Chevron Corp. said a test well in the Gulf of Mexico proved there were vast oil reserves retrievable from ancient formations in deep-water regions of the U.S. Gulf — an area where dozens of companies have pending projects that could now move to the front burner. The burst in demand for oil-field services and equipment was brought on by a three-year rise in oil and natural gas prices and the realization that worldwide supplies would be stretched for years by surging demand in developing countries such as China and India, as well as in the United States. The shortages apply not just to offshore platforms and on-land drilling rigs but all manner of hardware. Raw materials such as steel are at a premium. Additionally, there's an acute shortage of ships outfitted to carry out offshore seismic studies, reports WesternGeco, a unit of New York-based Schlumberger that specializes in seismic data gathering and analysis and that is working for Petrobras in Colombia. WesternGeco owns 13 of the 60 ships worldwide that can perform the work, and all are booked for the next six months. To drill the Gulf of Mexico test well, Chevron paid $216,000 a day to lease Transocean Inc.'s Cajun Express drilling rig, a fee that will rise to $460,000 a day from 2007 through 2010. Transocean, the world's largest offshore drilling contractor, is at the center of the rig crunch. It has a more than $20-billion backlog of rig leasing contracts — an industry record, spokesman Guy Cantwell said. |
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Sterling Bancorp to Divest Sterling Financial Services |
| Sterling Bancorp the parent of Sterling National Bank, announced that it has entered into agreements to sell for cash the business conducted by Sterling Financial Services Company, Inc., which includes a loan portfolio of approximately $132 million. The divestiture, which is subject to the satisfaction of closing conditions, is anticipated to be completed by year-end. The Company expects to record a one-time charge relating to the transaction against income in the third quarter of 2006. The Company estimates that the net after-tax effect of the one-time charge relating to the sale will amount to approximately $8.5 million and will be partially offset by the after-tax income from continuing operations, thereby resulting in a net loss for the third quarter of 2006. |
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| Airline / Aircraft News |
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Aeroflot Shareholder Saves Order with Boeing, Company Continues Negotiations with Airbus. |
| Alexander Lebedev, a member of the Russian Parliament and a
multi-billionaire and owner of 30 percent of Aeroflot through his
National Reserve Corp., disclosed earlier this week that he had stepped
in to reserve production slots for 22 long-range airlines from Boeing,
on behalf of the Russian flag carrier, averting the collapse of a $3
billion order and averting huge losses to the airline. He indicated that
he had signed an agreement to reserve the planes on the terms offered to
Aeroflot. The board of the state-controlled Aeroflot, lacking political backing, failed last week to decide between Boeing’s 787 Dreamliner and the Airbus A350 XWB. Aeroflot’s attempt to add the long-range airliners to it s fleet has become entangled in politics as Russia seeks to wrap up talks with the US on joining the World Trade Organization. Aeroflot’s fleet consists mainly of aging Soviet-designed aircraft. Analysts say the airline cannot afford to wait on Airbus, which has confirmed only one commitment, from Singapore Airlines for 20 of the redesigned A350. Aeroflot remains in discussions with Airbus about the purchase of 22 A350’s for delivery between 2012 and 2016. Boeing plans to begin production of the 787 in 2008 and has already received 377 firm orders. |
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Boeing May Enter Smaller Jet Market |
| A spokesman for Boeing disclosed the company is considering
producing an 80-100 seat single aisle plane, a move that would put it
into direct competition with two regional jet makers, Empresa
Brasaileria de Aeronautica and Bombardier. Both Boeing and Airbus are looking to eventually replace their current single-aisle planes with new models and have indicated the replacements will not be ready until 2012 or 2013 at the earliest. |
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EADS ANNOUNCES THIRD DELAY FOR A380 |
| EADS, which owns 80% of Airbus yesterday announced a third delay in
production of the A380, the world’s largest passenger plane, when it
enters service. The cause of this third delay the company reported was
due to complications installing wiring. Airbus had previously announced
two six-month production delays in the super jumbo program. Rumors continued that Airbus could announce a further delay in A380 shipments, which could result in the delivery of only four A380’s next year instead of the revised plan of the nine announced in June of this year. The announcement contained no details about the length of the new delay, its cost or its impact on customers’ delivery schedules. EADS indicated those details might take weeks longer to determine. |
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Russian Bank Acquires Stake in Airbus Parent |
| The state-owned bank Vneshtorgbank recently acquired a 5.02 percent stake in EADS, the parent of Airbus for 920 million euros. The purchase makes it EADS’s largest “non-core” shareholder, with a holding that is twice as large as the next biggest, the U.S. fund management company Fidelity Investments, which owns a little more than 2 percent. The company’s four core shareholders control 50.5 percent of EADS. DaimlerChrysler has 22.5 percent; Lagardere, 7.5 percent; the French government, 15 percent and the Spanish government 5.5 percent. |
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People in the News
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Alta Group Announces Luna Has joined European Team |
| The Alta Group recently announced that Miguel Vara Luna has joined
the European team as an associate, based out of Madrid. In his new role,
Vara will be charged with further developing opportunities within the
Spanish market. Vara has over 30 years experience within the financial services sector, focusing in particular on IPOs and M&A transactions in the 1980's. He joined the Banesto group in 1989, becoming general manager of LeaseBanesto two years later to develop their corporate business sector. In 1993 he became general manager for Banesto Leasing, the retail business, and oversaw the merging of the two arms, resulting in a company that now provides global leasing services. After leaving Banesto, he then became chairman and CEO of ING Lease Espaņa, before leaving in 2002 to set himself up as an independent corporate advisor, where he has spent the past four year providing strategic advice and M&A services for mid-sized corporates. Patrick Gouin, a European principal of Alta said: "As our European expansion progresses, the opportunities are multiplying and it is important that we continue to maintain the quality of what we can deliver to our clients. As such, we need to maintain the caliber of people as we expand, and Miguel provides us with additional complementary skills and an outstanding track record in the Spanish market." |
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Alta Group Expands European Presence with Appointment of Cosimetti in Italy |
| The Alta Group announced the appointment of Fabio Cosimetti, as an
associate. In his new role, Cosimetti will focus on the Italian
equipment leasing market. Cosimetti brings over 25 years experience of the Italian leasing market to The Alta Group, as well as broad managerial and consultancy skills. He is a specialist in small ticket vendor leasing, and has senior management and consultancy experience with major international firms. He has been closely involved in strategic decisions relating to the acquisition, expansion, restructuring and disposal of businesses and, in addition, he has developed an expert knowledge of regulatory matters, systems, processes and reporting procedures. Cosimetti started his career with accounting firms Price Waterhouse and Deloitte, before joining SIB Spa in 1980. His first responsibility with SIB was to supervise financial activity, especially in respect of tax, legal compliance and regulatory matters. In 1983 he was made managing director of their newly created leasing arm, which initially focused primarily in the automotive sector. In the following years he expanded the leasing activity across a range of small ticket assets, the success of which led to an approach and eventual takeover by ABB Financial Services in 1998. With a portfolio of small ticket vendor clients including Xerox, the business continued to flourish. In late 2002 the Swedish parent company sold its finance businesses worldwide and the Italian company was acquired by GE. Since 2003 Fabio has been operating as an independent financial consultant to clients, in particular Siemens Financial Services. |
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Alliance Funding Names New President, Vice President |
| Alliance Funding recently announced that Jason Centrella has been
named president of the company. Additionally, Alliance named Joanne
Centrella vice president. Renee Fox, CLP will remain with the company as
a consultant. Alliance Funding is a Charter member of the NAELB. The company offers working capital, accounts receivable financing, factoring and purchase order credit lines. Their customer base includes clients, small to medium sized businesses, Fortune 500 companies, municipalities, and charitable and religious organizations in Florida and throughout the United States. |
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Captara Corp. Names Ludlow as CEO |
| Captara Corporation, provider of the only comprehensive, web-based
corporate lease management solution, has named Rick Ludlow as Chief
Executive Officer. Former CEO Michael Caglarcan will continue to serve
Captara as corporate director and board member. Whether employing a centralized approach to lease operations or delegating lease responsibilities to individual business units, major companies are using the rapidly-deployed Captara solution to ensure consistency in all equipment leasing activities, including lease versus buy decisions, online collaboration with lenders and proactive management of all contract terms and options. In addition, the solution gives financial executives the compliance tools they need to classify and report lease obligations and commitments in accordance with Financial Accounting Standards Board (FASB) and Sarbanes-Oxley requirements. Ludlow most recently was President and CEO for ViewCentral, the world leader in enterprise conferencing and event management solutions, where he successfully reshaped the company's business model, leading to a 49 percent compound annual growth rate and the subsequent acquisition by Rainmaker Systems, Inc. Rick has also held senior management positions at HP, Premenos, Supplybase, Capital Analysts and Vuent. |
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Carl Chrappa Elected Chair of The National Association of Business Economics' Manufacturing/Industry Roundtable |
| The National Association of Business Economics ("NABE") has announced that Carl Chrappa, A.S.A., I.F.A., has been elected Chairman of the Manufacturing/Industry Roundtable for the 2006/2007 term. Mr. Chrappa is the President and C.E.O. of Independent Equipment Company (IEC), the nation's oldest equipment management and consulting firm, located in Clearwater, Florida. He is a tested and accredited Senior Appraiser with over 35 years of experience, and is active in global equipment markets. |
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CFLA names Hugh Swandel its Member of the Year |
| At its 2006 annual conference, the Canadian Finance & leasing
Association (CFLA) announced that Hugh Swandel, President of Swandel and
Associates, had been awarded the Association’s “Member of the Year”
Award. As stated by CFLA Chairman Joe LaLeggia (Irwin Commercial Finance), “this Award recognizes individuals, volunteers from members, who work quietly for the Association, committed to its goals. Through their generous efforts, CFLA is able to face the challenges confronting the entire asset-based financing and leasing industry.” Hugh Swandel is well respected as a specialist in corporate finance, merger and acquisition and general management consulting to leasing companies across North America, and he has been a constant advocate for a high standard of knowledge and professionalism in the industry. A strong supporter of CFLA for many years, this year he was instrumental in the Association following through on member suggestions at last year’s conference for an enhanced equipment and vehicle lease training program. He scanned the alternatives available, made the recommendation to partner with the U.S.-based Certified Leasing Professional (CLP) Foundation and the United Association of Equipment Leasing (UAEL) and worked side-by-side with the CFLA President to negotiate the agreement for the exclusive Canadian license to use the training. In the coming year, he has taken on the most substantial and challenging mandate ever extended by the Association: to adapt the 15 module American training program for Canada. Hugh will lead the development of the curriculum and structure of the program for the Canadian market. |
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Heater Named GE National Sales Manager/Managing Director of GE Intermediary Funding |
| GE Capital Solutions, Intermediary Funding, recently announced that
Rick Heater has been named national sales manager and managing director
- regional accounts. In his new capacity, he will lead sales and will be
responsible for identifying new growth opportunities. Prior to accepting
this position, Heater was senior vice president national sales manager
for GE Commercial Finance, Energy Financial Services where he led new
business development, relationship management, and sales efforts. GE Capital Solutions, Intermediary Funding provides a range of indirect financing solutions for financial institutions and intermediaries. |
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Markman is appointed AVP of Lakeland Bank’s Leasing Division |
| President and Chief Executive Officer Roger Bosma, of Lakeland Bank,
recently announced the appointment of Kenneth Markman to assistant vice
president of Lakeland Bank’s Equipment Leasing Division. Markman, a graduate of Rider University, will be responsible for the review and approval of financial requests for their equipment leasing division. Previous experience includes employment at Interchange Bank, Orix Financial Services and The CIT Group. |
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MeriCap Credit Announces Addition to Board of Directors |
| MeriCap Credit recently announced that Harold D. Marshall, former
president of Associates First Capital Corporation has joined the
company's Board of Directors. Marshall served as president of The
Associates from May 1996 until January 1999, as well as a director of
The Associates during the same period. He joined The Associates in 1961
and organized their Transportation Division in 1974. Since 1999,
Marshall has served as a director for Rush Enterprises, Inc., which owns
the largest network of truck dealerships in America. Marshall has also served as vice chairman of the American Trucking Association Foundation Board of Directors, as a member of the American Trucking Association Foundation Executive Committee, as trustee emeritus of the Hudson Institute and on the Board of Trustees of the Dallas Museum of Art. |
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Michael Naughton Joins CapLease as Senior Vice President, Investments |
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Capital Lease
Funding, Inc. recently announced that Michael J. Naughton has joined
the Company as Senior Vice President, Investments. |
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National City Commercial Capital Announces New Appointments |
| The Corporate Finance unit of National City Commercial Capital
announced the appointment of Thomas D. Sbordone to the newly created
position of senior vice president & national sales manager. Sbordone, who has over twenty years of experience in the "large-ticket" equipment finance industry, will focus primarily on direct Lease origination and sales management. The company also announced it has named Jared Cuda as senior vice president of its air capital division, National City Corporate Air Capital. National City Corporate Air Capital provides customized financing products and services for corporate jet-leasing needs. In this role, Cuda will responsible for originating new lease and loan solutions for aircraft dealers and retail clients throughout the country. Prior to joining National City, Cuda spent six years with GE Commercial Finance, Corporate Aircraft as manager, inventory finance program dedicated to servicing aircraft dealers throughout the country. |
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Pinnacle Business Finance Names National Accounts Manager |
| Washington-based Pinnacle Business Finance has announced that
Mitchell Davis has joined the company as national accounts manager. Davis brings over 20 years of experience to his new role, and will focus on implementing vendor and manufacturer finance solutions to a myriad of industries, including technology, healthcare, and waste industries. Prior to joining Pinnacle, he served as national accounts manager at American Express Business Finance, vice president of marketing at First Sierra Leasing, and vendor programs manager with T&W Financial Services |
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Prothero Joins Main Street Bank As Business Development Manager, Franchise Division |
| Texas-based Main Street Bank has announced the appointment of Woody
Prothero as business development manager of its franchise division.
In his new role, Prothero will focus on developing and building
program relationships with franchisors in the restaurant industry, as
well as originating business activity directly with franchisees. |
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RVI GROUP ESTABLISHES FIDELITY & CRIME TEAM |
| RVI Group recently announced today their entrance into the fidelity
& crime insurance marketplace, with the hiring of a highly experienced
team of underwriters. Potential client companies include commercial
banks, the capital markets industry, insurance companies, and Fortune
1000 commercial companies. The offices are located at 110 Wall Street in
New York City.
Bill Jennings, a 35-year veteran in fidelity insurance underwriting, will head the firm's office. Before joining RVI, Jennings served as Executive Vice President of CNA, where he managed their Bond Department, starting in 1992. Prior to this he was with Chubb, where he began his career in 1971. In addition to Jennings, three professionals will also work out of the New York office. They are: • Joe Prystupa, who has 24 years experience working exclusively with
Fidelity products, beginning with the Aetna in 1982, and then working
with Marsh until 1995, when he joined CNA to develop their Financial
Fidelity book. Explained RVI Group Chief Executive Officer, Doug May. "Consistent with our core businesses, our key strategy in entering the Fidelity & Crime Insurance business is to deliver value to our clients. We are very pleased to add these industry leaders to our team of experienced underwriters. They have unparalleled industry know-how and a solid track record. We look forward to a very successful operation." |
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Travelers Financial Names Koury Director of Sales, Marketing |
| Travelers Financial announced that Jim Koury has been appointed
director of sales and marketing. In this newly created position, he will
be responsible for development of origination activities, implementation
of sales programs and training initiatives for Travelers Financial
Corporation in Canada, as well as leading his sales team in the
development of new business opportunities. Koury will report directly to chief operating officer Roberto Cortese. Prior to accepting this position he was most senior account manager for Travelers Financial Corporation based in Edmonton where he will continue to be based. |
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Willis Names Lee Beaumont COO, Don Nunemaker GM, Leasing & Steve Oldenburg GM, Trading |
| Willis Lease Finance Corp., a company engaged in the
acquisition and lease of commercial aircraft engines and equipment,
announced the appointment of Lee Beaumont as Chief Operating Officer.
The company also announced the appointment of Don Nunemaker as General
Manager, Leasing and Steve Oldenburg as General Manager, Trading. member of the Canadian Institute of Chartered Accountants, Beaumont is a graduate in both commerce and science from the University of Manitoba. Before joining Willis, Beaumont served as a consultant in The Carlyle Group of Washington. Earlier, Beaumont worked in Standard Aero Limited for 17 years, including four years as President of their US subsidiary. The company made significant growth in its engine remanufacturing market to 45% with revenues exceeding $400 million, under Beaumont's leadership. Commenting on the appointment, President and Chief Executive Officer of the company Charles Willis said, "As a result of our strategic planning process, we decided to make changes to our organizational structure to better prepare the company for the future. These changes play to the strengths of our senior people and optimize our ability to tap their experience and talents. Lee has an extensive experience in aviation and finance, as well as strong management and operational skills. Don is extremely talented in leasing and will now be able to focus exclusively on managing our most important operation. Steve will be building and expanding our equipment trading capabilities, a position for which his 28 years of experience in the industry make him exceptionally well qualified. I am confident our new structure will improve productivity and facilitate future growth." |
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Woodburn NameD Partner of Credit Suisse, GE Infrastructure JV |
| Global Infrastructure Partners, the joint venture between Credit
Suisse and GE Infrastructure, announced the appointment of William
Woodburn as a partner. Woodburn spent 22 years at General Electric as an
executive, including membership of the Board of GE Capital. Most
recently, he led a strategic assessment of GE's industrial portfolio.
Prior to that, he was president and CEO of GE Infrastructure, increasing
revenues by 40% from 2003 to 2005. As executive vice president of
Equipment Management at GE Capital, he ran a $8 billion portfolio of
leasing businesses. Credit Suisse and GE Infrastructure each will contribute $500 million toward the formation of Global Infrastructure Partners. The joint venture will invest globally in infrastructure assets, including energy, transportation and water. Targets include power generation and transmission, gas storage and pipelines, water assets, airports, air traffic control, ports, railroads and toll roads. GE Infrastructure's participants in the joint venture are its GE Energy Financial Services and GE Commercial Aviation Services (GECAS) units, including the Transportation Finance team. Woodburn joins Global Infrastructure's senior management team, which includes Adebayo "Bayo" Ogunlesi, chairman and managing partner, as well as partners Jonathan Bram, Matthew Harris and Michael McGhee. Ogunlesi has had a 23-year career at Credit Suisse, most recently serving as executive vice chairman, chief client officer, and a member of the Management Committee of the Investment Bank. Bram has served as co-head of the General Industrial and Services Group at Credit Suisse and before that, as COO of the Investment Banking Department globally. Harris has served in a variety of senior roles within Credit Suisse's Investment Banking Department, most recently as Head of the IBD EMEA Emerging Markets Group, co-head of the Global Energy Group and as a member of the IBD Operating Committee in Europe. McGhee has served as head of Credit Suisse's Global Transportation and Logistics Group since 1990, and has worked on several major airline and logistics transactions. |
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IN VINO VERITAS |
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| Pinot Noir-The Holy Grail of Wines |
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Please sit down.
May I offer you a glass of wine? Would you care for a delightful Burgundy? Perhaps a very fruity Pinot Noir from Oregon, or just a glass of bubbly ? Guess what? All of these wines share something in common-the grape varietal is pinot noir. Perhaps no other wine garners as much regard or generates as much frustration. Producing a crop is a matter of blood, sweat, a little technology and a lot of luck, especially in its ancient home of Burgundy. There, the impact of terroir is critical. If the soil has a high clay content, the wine will have more body and be a “heavier” wine. On the other hand if the grapes are derived from vines in a stony-type soil, the wine will tend to be more refined and have a subtle mineral character. To add to the complexity of choices and differences, the Pinot Noir produced in California tends to be big and fruity, definitely a mouthful of wonderful wine, but never attaining the subtlety, silkiness and complexity of the greatest of its French counterparts. Oregon on the other hand produces Pinots that can be either Burgundian or Californian in style depending on climate, soil and a host of other factors. Oregon is a newcomer to the world of Pinot Noirs, as is New Zealand. In both areas, Pinots have been produced for shorter periods of time than California or the thousand year+ heritage of Burgundy. Ironically, this is a grape that grows well in a moderate climate. It likes the cool temperatures, rather than the intense heat characteristic of some wine producing areas of California. It is especially partial to cool coastal regions allowing the breezes to temper the heat and providing just enough light. The finished product can embody a wonderful glass of fruitiness, earthy aromas and a memorable experience. It can also embody a very thin and frankly distasteful experience when it is the product of a growing area where production was too high and/or the grapes were poorly handled. And then, there is that unique experience when all the planets seem to be in proper order, the world is your oyster and you have a glass that is just pure heaven on earth. It is this type of experience that keeps individuals coming back, searching to replicate this experience, which isn’t easy. In Burgundy, the finest examples of Pinot Noir often come from estates that are labeled gran cru (there are 25 vineyards that have this highest level of designation), followed by premier cru. There are 26 premier cru appellations, comprising hundreds of vineyards eligible to append their names to that of an appellation. These two designations represent consistently the highest level of excellence in Burgundy. There is some debate regarding the longevity of Burgundy, especially from France. Here again, the temperamental character of the wine and its handling can be a deciding factor. However, when properly produced, bottled and stored, some of the best from Burgundy can last for fifty years, or even more, without losing that distinctive character that makes it so prized. The 2003 vintage of Burgundy produced some extraordinary wines, but the overall quality demands that one be selective and cautious. Vintners such as Joseph Drouhin and Louis Jadot produce consistently high quality wines and the Chambolle-Musigny and Beaune and Pommard appellations are ones that will offer their own superior and very distinctive interpretations of Burgundy. A word of caution: Burgundy is not for the penurious or one who is impatient. The very best of Burgundy “hot off the press” will often cost more than $200 per bottle and it is highly recommended that it be properly stored for at least several years. Is it worth it? As you can tell by me comments, I think so, but as with many things, beauty is in the eyes and wallet of the beholder. The options from California and Oregon are a slightly different style from their French cousin, as noted above. Also, the financial burden on the consumer is less onerous, with the very best typically under $50. Look for California pinots from producers such as Dutton Goldfield and Cuvaison and Calera ( a personal favorite and a very financially responsible choice!) In California, the 2002 and 2003 vintages were both highly rate (90+). Oregon producers such as Argyle and Bergstrom offer outstanding examples of Oregon Pinots. The ’01, ’02 and ’04 vintages were all rated 90+. Enjoy. |
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UPCOMING WINE FESTIVALS |
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There are numerous wine festivals/auctions coming up that lend themselves to a great deal of fund and enjoyment. They include: San Antonio, TX. New World Wine & Food Festival; Nov. 7-12; 210-223-2881; www.nwwff.org |
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