When it comes to the world of asset-based lending, reports from the field can be conflicting.
A recent roundtable composed of leaders from some
of the country’s top bank affiliate asset-based lenders
— Bank of America, Wells Fargo, SunTrust and U.S.
Bank — that appeared in the Nov/Dec 2016 issue of ABF
Journal concluded that the market was flat and would
remain so in 2017. They also doubted that non-bank
lenders could compete with their deep pockets.
In September, Marty Battaglia, CEO of Encina
Business Finance offered a different point of view. He
told ABF Journal that he didn’t see banks as competition for the type of ABL deals Encina is seeking to close
because of the tight regulations. “The banks can’t keep
these types of deals on their books. Banks, especially
community banks, don’t want to have to deal with DIP,
bankruptcy and restructuring. They don’t want to put
people in their community out of work,” he remarked.
Yet, despite what Battaglia called the “messiness”
of the sector, community and regional banks across
the country are entering the ABL world in full force.
Just a few months ago, Blue Hills Community Bank
in Massachusetts hired veteran ABL bankers Yvonne
Kizner and Keith Broyles to start a new ABL division.
New York-based Sterling Bank purchased Dallas-based NewStar Financial, acquiring CEO Michael
Haddad in the bargain.
Diving into ABL
Not to be outdone, Texas Capital Bank, headquartered in Dallas with branches in the state’s five largest
metropolitan areas (Austin, Fort Worth, Houston and
San Antonio), has decided to become a larger player
in the ABL market as it has done in equipment finance
and loan syndication.
This summer, the bank hired ABL veteran Chris
Capriotti from JPMorgan’s Dallas office to lead the division. Capriotti brought team members Jeff Tompkins
and Olivia Pipitone with him to jump start the effort.
“Texas Capital had dipped their toe in the [ABL]
water,” says Capriotti of his new home. But then the
bank decided to take the full plunge by bringing this
team in from JPMorgan. He laughed when asked if
he thought the market was flat, adding that at Texas
Capital, “it is anything but flat.”
Capriotti had spent most of his career — spanning
more than 26 years — at JPMorgan and moved into ABL
when the bank opened that division.
Texas Capital Bank Dives into the ABL Pool:
Capriotti and His Team from JPMorgan Have
Moved to a New Neighborhood
BY NADINE BONNER
Deep in the heart of Texas, the ABL world is heating up. Despite reports that the landscape is flat and
banks have become reluctant bedfellows, Chris Capriotti and two members from the JPMorgan ABL team
moved to Texas Capital Bank recently to ramp up its ABL division and transform a regional bank into a
CHRIS CAPRIOT TI
Executive Vice President, Asset Based
Lending, Texas Capital Bank
ABFJ EXCLUSIVE: PROFILE OF SUCCESS
“As a product group, we follow the bankers, and their elationships span the country. As the word has gotten around,
we’re getting a considerable number of inbound calls from equity
funds and hedge funds without doing much marketing.”
— Chris Capriotti, Executive Vice President, Texas Capital Bank.