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.

Big Apple Circus Benefit Raises $430,000

The seventh annual Hospital for Special Surgery Big Apple Circus Benefit, co-chaired by Dan Zwirn's wife Monica Keany, was a success, raising $430,000.  The funds raised will support clinical research and medical staff, as well as social workers and nurses.  Keany, who was once a patient of the hospital, attended the event with their two sons. Guests were able to enjoy circus favorites including cotton candy, popcorn, face painting, photo booth, and juggler performances before heading to show.  

Actor Jack Gore, from NBC's "The Michael J. Fox Show," appeared as a special guest. Jack, who is 8 1/2 years old, is a former patient of the hospital.  Born with a birth defect, the young actor received treatment from Dr. David Scher. Jack, who is now fully recovered, is making Dr. Scher's job look easy—when comparing it to Santa Claus's tasks, according to the Wall Street Journal: 

"I'm going to mostly ask him for things that are made up—like something that can turn you into any animal and then you can change into the language of the other animal and then you can turn yourself back into a human. I could turn myself into a dog and play with my dog," Jack explained. "Or else I would be a fish so I could swim around in the bath tub like it's an ocean."

Full article on wsj.com.

Hospital for Special Surgery, Big Apple Circus Benefit Returns December 7th

Dan Zwirn is a long time supporter of the Hospital for Special Surgery and their commitment to the treatment and rehabilitation of children.  On December 7th, they will be hosting the Seventh Annual Hospital for Special Surgery Big Apple Circus Benefit, where Zwirn has previously served event Co-Chair.  The Hospital for Special Surgery strives to provide the highest quality patient care, while advancing the science of orthopedic surgery, rheumatology, through research and education. This year his wife, Monica Keany, will be Co-Chairing, with both Dan Zwirn and Monica Keany acting as sponsors of this year's event. Keany is also a current member Hospital for Special Surgery’s Board of Trustees.

The Big Apple Circus Benefit is a non-profit performance that will support pediatric care and research at Hospital for Special Surgery.  The funds raised by the event will go toward three main programs of the hospital:  Pediatric Orthopedic Clinics, Alfred and Norma Lerner Children’s Pavilion, and The CHArm Center.  Popular for families of all ages, kids enjoy a real live circus performance with the added benefits of a more intimate venue compared to larger circus companies.  Pre-show entertainment at Lincoln Center, Damrosch Park, will provide face painting, juggling, stilt walkers, and more.

Dan Zwirn Quoted in Financial Times Article

The Financial Times' Tracy Alloway has published a new article titled, "Markets: The debt penalty" that discusses the shrinking of Wall Street bond-trading desks as banks hold more capital. Due to the financial crisis, big banks have reduced their business in dealing with corporate bonds, writes Alloway, as the amount of bond risk the banks hold is lessened.

Later, Alloway discusses exchange traded funds (ETFs) and their expansion to track corporate debt. In May, Fed Chairman Ben Bernanke hinted that the US central bank might phase down the emergency bond-buying program it launched during the financial crisis. When this occurred, market interest rates began to rise:

“When that happened, volume went to zero,” says Dan Zwirn, managing partner of Arena Investors, a hedge fund focused on special-situation lending to companies."

Alloway went on to discuss the lack of liquidity in the secondary bond market. While some officials believe that an increase of liquidity in the market would help if the corporate bond bubble burst. But Dan Zwirn said, "As soon as the dealer gets out of balance to a point where he can be accused of prop trading, he says I’m not doing it."

Click here to read the full article (registration required).



Dan Zwirn is Managing Partner of Arena Investors, and is married to Monica Keany.

Brookings: Do Americans Believe Capitalism & Government Are Working?

The Brookings Institute recently published findings from the Public Religion Research Institute and Governance Studies at Brookings regarding whether Americans think capitalism and government are working.

The 2013 Economic Values Survey explored Americans’ views on capitalism, government, economic policy, and financial well-being. 

Concerns:

• 26% felt the lack of jobs was most the important economic issue
• The budget deficit was the second concern (17%)
• 18% cited rising health care costs
• Education as the most important issue: 9%

Despite these statistics, 54% believe that capitalism is working at least somewhat well. Government on the other hand prompts over 60% of Americans to agree that government should do more to reduce the gap between rich and poor, and that it is the responsibility of government to take care of those who cannot take care of themselves. A majority (54%) believes that hard work and determination are no guarantee of success, while a majority (52%) also believes their generation is better off financially than the next generation will be.

From: The Brookings Institution

The findings also showed that despite polarization, "approximately 8-in-10 Americans agree that promoting freedom and liberty, encouraging people to live more responsible lives, and promoting equality and fairness are important guiding values. More than two-thirds cite promoting a public safety net as an important guide."

Click here to download the survey report


Dan Zwirn has recently joined the Brookings Institution Budget and Finance Committee. He has also served as a Trustee.