Data shows Harvard Business School grads are moving to Silicon Valley

A recent report and interactive map shows where the majority of 2014 MBA graduates relocate following graduation. Based on a class of 913 students, the majority of graduates pursued their careers in either New York City or San Francisco shortly after earning their degrees. 

It’s no surprise that new graduates would look to New York City for work, being home to one of the largest finance centers in the world. The large number of graduates moving to the San Francisco’s Bay area is more surprising; however, and speaks to Harvard’s more recent enthusiasm for entrepreneurship. Silicon Valley is home to major tech players like Google, Apple and Facebook, and a growing number of startup companies looking to break into the game. 

The combination of entrepreneurship-related coursework at the school and growing startup scene in the San Francisco area should lead to more MBA’s making the move to the west coast.

Brookings Institute Draws Attention to Student Debt

The Brookings Institute’s Beth Akers and Matthew Chingos have conducted a study analyzing over twenty years of financial data. Using data from the Survey of Consumer Finances, the pair concluded that the student debt situation may not be as detrimental as some experts have led us to believe. 

Findings suggest that about ¼ of the increase in student debt can be attributed to Americans pursuing more advanced degrees, rather than a significant increase in the cost of obtaining a bachelor’s degree alone. It was also determined that the average lifetime income of Americans with a college education has actually kept pace with the increase of student debt, and an increased repayment period has allowed borrowers’ the monthly payment to remain consistent over the years. Overall, the study suggests that the average borrower (not those with incredibly high amounts of debt) is not suffering financially post-graduation. 

Dan Zwirn serves on the board of directors of the Brookings Institute, a nonprofit public policy organization.

Wharton School views online class offerings as advantageous

The University of Pennsylvania’s Wharton School is offering a series of Massive Online Open Courses (MOOCs) to those interested in getting an idea of the school’s class offerings, without actually enrolling in, and paying for, courses.

The courses are offered in subjects such as accounting and marketing, and is viewed as a means of giving the Wharton School an advantage over competitors that do not offer the same service. "The most successful courses don't try to replicate the classroom experience," said vice dean of innovation and professor of operations and information management, Karl Ulrich. 

MOOC courses are different than the originals, and do not equate to credits from the school, but students will be able to get an idea of the traditional Wharton course offerings. Dan Zwirn was a graduate of the Wharton School school in 1993, earning a bachelor’s in economics and a B.A.S. in computer science.

Patch of Land Signs Dan Zwirn as Advisor

Real estate crowdfunding platform Patch of Land, has signed renowned Wall Street hedge fund manager Dan Zwirn, to help guide the organization as it rapidly expands.

The fast growing, LA-based company has already done several million dollars in deals in just a few months. Currently, the company is only allowing work with accredited investors. Patch of Land understands real estate finance and the need for incorporating crowdfunding in todays industry. For this reason, Patch of Land has been able to stay ahead of the competitors.

It is certain is that real estate crowdfunding is going to boom, once other companies recognize the opportunity available, according to the Crowdfund Insider:

"The company currently is leveraging an interesting model.  Using internal capital they are acting as underwriters for the development project – and then turning to the crowd to sell the asset.  This means once they have approved a project, the developer may start.  No waiting on the crowd.  This also means they are pretty confident of the deal if they are using their own funds to facilitate the funding process.  Patch of Land is crowdfunding both residential and commercial real estate debt stating that they will work only with best in class developers. They intent to partner with developers who are rebuilding communities across the country, while offering investors new asset classes and high quality opportunities for portfolio diversification."

Dan Zwirn, who is Managing Member, Chairman and Chief Investment Officer at Arena Investors and Managing Member of Zwirn Co., will advise the executive team along with Patrick Gannon, of Archimedes Labs LLC.  Zwirn has also served as Founder/Portfolio Manager of the Special Opportunities Group of MSD Capital, L.P., the private investment firm of Michael Dell.

North Mill Capital Secures $90 Million Credit Facility

This week North Mill Capital announced it has obtained a $90 million credit facility led by Wells Fargo Capital Finance. The new, three-year facility, replaces North Mill's existing Senior Secured Credit Facility. The facility will also be used for working capital and to support future growth.  North Mill is excited to work with Well Fargo, according to president and chief executive officer of North Mill, Jeffrey Goldrich:

"We are pleased to work with Wells Fargo Capital Finance. As we have grown and expanded our products and geographic reach we now require the strength of Wells Fargo and the sophistication in lender finance that it brings with it," Goldrich went on to say, "We worked closely with Andrea Petro, Stewart Hayes and the Wells Fargo team to structure a credit facility, providing us with increased liquidity, the ability to pursue strategic opportunities, continue with organic growth and stay competitive."

Andrea Petro, senior managing director and division manager of the Lender Finance division at Wells Fargo Capital Finance, confirms the financial division at Wells Fargo is equally pleased about the partnership:

"North Mill is a strong brand and highly reputable company within the ABL market space and I am pleased to have Wells Fargo lead this credit facility... We look forward to continuing our long term relationship with North Mill."

Dan Zwirn founded the EX-BACC Management Team in order to create North Mill Capital and brought in private-equity firm, Monitor Clipper Partners, to co-invest in Colford Capital LLC.  In November 2012, Colford Capital created subsidiary North Mill Equipment Finance LLC, to acquire Equilease.

Read the full article on North Mill Capital's new credit facility led by Wells Fargo here.

Cameron F. Kerry, Former Acting Secretary and General Counsel of Commerce, Joins Brookings as Distinguished Visiting Fellow

Darrell West, vice president and director of Governance Studies, announced last month that former acting secretary and general counsel of the U.S. Department of Commerce, Cameron F. Kerry, joined the Brookings Institution. Kerry will join Governance Studies as the Ann R. and Andrew H. Tisch Distinguished Visiting Fellow.  He will participate in research projects and public forums within the program as well as its affiliated Center for Technology Innovation. In a statement, Vice President West affirmed that he looks forward to Kerry's contributions,

"We are honored to have Cam join Brookings and look forward to his contributions to our technology policy and international trade research... Cam was instrumental in the Commerce Department’s efforts in establishing new foundations for U.S. economic growth and prosperity in a 21st century global economy. He brings unparalleled expertise and insight that will further Governance Studies’ goal of delivering cutting-edge research and policy solutions to improve the performance of our national government."

Prior to Brookings, he attended Harvard College where he received his Bachelors degree, cum laude. In addition, Kerry earned his Juris Doctor from Boston College Law School, magna cum laude. It was here that he also served as executive editor of the Law Review and winner of the school's moot court competition. At Suffolk University Law School, Kerry worked as an adjunct professor. He has also operated as a senior advisor and national surrogate for the 2004 Democratic presidential campaign.

Kerry was the first to be named to the Ann R. and Andrew H. Tisch Distinguished fellowship.  Individuals part of the prestigious fellowship are particularly noteworthy and unique. The goal of the  fellowship is to host renowned representatives from a variety of areas including: government, business, journalism, and education, to write about the challenges the country is currently facing.

Dan Zwirn is a contributing author and member of the board of trustees at Brookings Institute.

Dan Zwirn Interviewed in HFMWeek Magazine

In the 2013 Review Of The Year issue of HFMWeek Magazine, Dan Zwirn was interviewed by reporter Jasmin Leitner.  The article written by Leitner discussed the gradual convergence between hedge funds and private equity that was seen over the course of this year.
Stephanie Miller, who is global head of alternative investment services at J.P. Morgan, believes this gradual convergence is influenced by the growth of hybrid fund structures.

“many sophisticated, institutional investors are increasingly looking to tap into the alpha found in the most illiquid part of the credit curve,” she says, adding that hybrid funds offering access to certain subsets of the fixed income world can flourish, particularly as the defined waterfall structures and lock-up periods help investors in matching their long-term liabilities.

Dan Zwirn, cautions although there has been some convergence, part of it is misperception by the investor.

“Investors often conflate private equity and hedge funds, particularly in how they perceive illiquidity and embedded equity risks.” Nonetheless, he adds that the current environment creates good opportunities for managers with the right offering – hybrid or otherwise.

Leitner goes on to say mangers who posses the right size and infrastructure, are able to offer their customers the best of both worlds. Leitner concludes shifting between asset categories will likely pay off. She believes the trend will continue, and that differentiation is key.

To read the full edition of HFMWeek in 2013, click here.