Outlook for Private Credit in the 2nd Half of 2020
As we think back to the end of 2019, no one could have foreseen the challenges that exist today in markets, the economy, and in our lives. COVID – 19 has devastated the global economy & our lives.
Taking things one day at a time may be all that lenders and investors can do in response to the heightened level of uncertainty, but looking ahead as the world begins to normalize is the next opportunity. There is 1 truth that participants can count on and that is that opportunities arise out of change. There is no place where change has been more apparent, over the last 10 years, than Private Markets. In 2020 mid-year market outlook, our panelist will review what happened and share their collective 100+ years of experience offering us an insight into the detail on how to find and execute in this challenging environment.
- Maneuvering the volatility
- Identifying diverse sources of income and collateral
- Managing the day to say challenges post pandemic
- Find good deal flow and closing
- Legal advisors and the real value that they bring
- Workouts or bankruptcy
Event Recording
BD 9+ Outlook for private Credit in 2H 2020
Speakers
Michael D’Onofrio
- Title
- Managing Director @
- Company
- Engineered TaxServices, Inc.
- Role
- Moderator
Michael D’Onofrio is the Managing Director of ETS and sits on the Executive Board. He has had a successful career in finance, energy consulting, and real estate development. Michael has founded numerous successful companies and is a valued member of the team. His strong business drive has added professionalism, consistency and significant growth to the company as a whole as he guides his clients along the path of increased success and missed opportunities for reduced tax liability. He has also mentored many ETS team members to the same success. Michael is originally from Southern Florida and recently relocated to Charlotte, North Carolina with his wife and two small children. They enjoy playing in the great outdoors, mountain biking, hiking, and sports. Michael also enjoys yoga, particularly Bikram Yoga (known as “hot” yoga), and rather than client golf outings, he will happily oblige any ETS clients with an hour of hot yoga instruction!
Nick Eskandari
- Title
- Founder & CEO @
- Company
- Key Bridge Fund
- Role
- Panelist
Nick Eskandari is the CEO and Founder of Key Bridge Fund, a direct commercial real estate lender located in Beverly Hills, with over 25 years of experience serving in various leadership positions including commercial and residential lending, real estate investments and developments, investment banking and corporate finance. Nick has recently been recognized as one of the Most Influential Lenders by the Los Angeles Business Journal. Key Bridge Fund’s sole business is to originate short-term senior loans with maturities typically ranging from six to twenty-four months with target LTV up to 60% of the property, located in select strong markets of the United States, with a primary focus in California, securing Key Bridge Fund’s mortgage loans. Key Bridge Fund attempts to reduce the interest rate risk and the market cycle risk of potential declines in property values by making short-term loans. Nick’s motto is, “the way to understand value in a real estate project is through the lens of an experienced lender with integrity.†He and his dedicated team apply this principle on every project. Nick is a graduate of Investment Banking Institute from New York and holds an MBA degree. Nick can be reached at (310) 271-3883, Email: nick@keybridgefund.com
Rob Jafek
- Title
- Founder @
- Company
- Boomerang Capital
- Role
- Panelist
Rob has been involved in all phases of Boomerang’s development since its inception and oversees its operations. He previously held various principal investing roles including Head of International Trading for Nicholas Applegate Capital Management and Analyst at Tiger Management. He has founded and managed two alternative investment firms: Plumeria Advisors and Torrey Pines Capital Management. He started his career as an investment banking Analyst at Morgan Stanley. He received a BA in Finance from The University of Utah and a Masters in Innovation and Entrepreneurship from HEC Paris. He is a contributing member to Forbes.com and a member of the Forbes Real Estate Council and teaches business as an Adjunct Professor at the UC Berkeley School of Law.
Bobby Werhane
- Title
- Assistant Vice President
- Role
- Panelist
Bobby is responsible for debt and equity placement specializing in structuring/negotiating complex structured finance investments across all asset classes with a special focus on Hospitality and Multifamily capital stack vertical’s. Since joining Bellwether Enterprise, Bobby has become a trusted national expert on Opportunity Zones, as well as, having assisted a top tier of customers achieve their goals by sourcing low cost of capital through a wide variety of capital sources including Freddie Mac, Fannie Mae, Life Insurance Companies, Private Equity Firms, Debt Funds, Banks, and many unique subordinate capital sources.
As a graduate of Cornell University’s School of Hotel Administration, Bobby’s passion for the industry is passed along through his continued involvement as a distinguished guest lecturer.
Prior to joining Bellwether, Bobby served as the President of Experience Hospitality, where he operated a full-service hospitality development, management, and consulting firm where he oversaw 40M+ in annual revenue across 12 award winning concepts. With over eighteen years of experience in the Hospitality Industry, Bobby has successfully orchestrated 50 plus transactions which include real estate developments, financings, sales, and contract negotiations.
As a graduate of Cornell University’s School of Hotel Administration, Bobby’s passion for the industry is passed along through his continued involvement as a distinguished guest lecturer. His wide breadth of knowledge in both operations and capital markets makes him keenly aware of the boutique needs for each client and the industry as a whole.
Demian Waldman
- Title
- Managing Partner
- Role
- Panelist
Mr. Waldman joined The Confidas Group in 2014 and with 25+ years of experience in financial services and international business development, was previously Head of Business Development at Bravia Capital an independent manager of public and private equity investments in Brazil. Previously, was a founding partner of Liyen Co., a Dubai-based Investment Advisory Company for Brazilian and Gulf (GCC) business development. Prior was responsible for business development and a partner at Rosenberg Partners, a leading Brazilian M&A and Project Finance independent advisory company, spin-off from Rosenberg & Associados (1985) one of the most distinguished macroeconomic consulting firms in Brazil. And for 9 years, Business Development Manager of Faldini-Belesta Banque d’Affaires, an Investment Company of Belesta AG (Swiss Multi-family Office)) and Faldini Family Office. Mr. Waldman graduated in Business Administration from Fundação Getúlio Vargas (FGV) and attended a University Extension Program in International Business at Sophia University, Tokyo. He is fluent in English, Portuguese, Italian and Spanish and has a good working knowledge of French.
About
Boomerang Capital
Boomerang Finance, LLC (the “Fund”) has an investment objective of providing income with limited variability in returns. This is accomplished by providing short-term, business-purpose loans secured by real estate in a first lien position with the additional protections of a personal guarantee from borrowers and cross collateralization. All loans are self-originated, and risk managed through careful underwriting, thoughtful portfolio construction and consistent servicing. The majority of borrowers are return clients. Exposure is broad-based, and the Fund is structured as a REIT.
Engineered TaxServices, Inc.
Engineered TaxServices, Inc. (ETS) is a licensed engineering firm that focuses on federal, state, and local tax benefits. Engineered Tax Services was founded by CEO, Julio Gonzalez, to bring specialty tax engineering services to mainstream America. There are several federal tax incentives in which the IRS requires professional engineers and scientists to determine the tax benefits in the areas of real estate and manufacturing. Specific to real estate is the ability to depreciate real estate investments by components vs. the traditional expensing of real estate over a 39 or 27.5-year period. A forensic engineering study of a real estate property, in which the building is depreciated component by component, allows investors to expense up to 50% (and in some cases, more because of 100% bonus depreciation) of the purchase of their building up front.Decades ago, cost segregation was only available to real estate investors who worked with the Big 4 accounting firms who had dedicated engineering staffs. Mr. Gonzalez’s goal was to be a resource to the CPA community so that these services could be available to all real estate investors, big or small. Cost segregation continues to be one of the largest tax incentives for wealth preservation. There are very few investments that the United States Federal government allows investors to expense dollar for dollar. Real estate is the one investment from which you can deduct 100% of the purchase price against taxable income. Inherently, this allows for a 50% return on investment at a 50% federal and state tax bracket. Cost segregation allows the investor the ability to mitigate tax liabilities and preserve wealth by accelerating these deductions much quicker. Engineered Tax Services also uses its engineering, scientific and tax team to provide one of the most important federal and state tax credits available to United States businesses in the form of research and development tax credits (R&D). R&D Tax Credits are meant to incentivize manufacturing, innovation and technical design in the United States. These credits are essential to keep labor and promote job creation in the United States. Qualifying activities include developing new or improved products or manufacturing processes, tool and die development, technical design in the construction industry, software development, fracking and drilling technique development, and developing new or improved drugs or formulas, just to name a few. The R&D Tax Credit is a very important federal incentive meant to ensure that US companies remain competitive globally.
Key Bridge Fund
Key Bridge Fund, located in Beverly Hills, California is a private commercial real estate lender and its sole business is to originate short-term bridge loans typically ranging from six to twenty-four months with a maximum of 60% Loan To Value “LTV” ratio secured by the equity in the multifamily residential and commercial real estate in first-lien position in select strong markets of the United States, with a primary focus in California. Key Bridge Fund is managed and operated by a team of seasoned professional in Commercial Real Estate. With many decades of proven track records in CRE from risk management, mortgage lending, acquisition, developments, market study and preserving the integrity upon which it was founded, we are well-positioned to make sound decision on each and every transaction with a main focus to safeguard the investments of our members/partners while providing capital solutions to borrowers on a timely fashion. The Management of Key Bridge have been through the recessions of the 80s, 90s, and 2000s. With our seasoned, exceptional in-house valuation team and common-sense underwriting guideline, we can fund faster than traditional banks with competitive rates and fees in the private capital market.