Done Deals 2014

July 22, 2014


$2.1MM T12 @ 125%, 7 years

$1.4MM T12 @ 125%, 9 years

$2.8MM T12 @ 120%, 9 years

$800K T12 @ 120%, 7 years


Typical mix of bogeys including:


Asset Migration

Managed v. Discretionary %s

70%, 80%, 90%, 100%, 110%, 120% T12 hurdles


Deferred Comp (stock, cash)

Retention to 150% @ 5 yrs


The LatAm market is continuing to lose appetite for Venezuela.  We represent several candidates with domestic AUM held at Pershing/BONY where the account owner is living offshore.  It has been quite difficult finding a new home for them but for every action, there’s an equal and opposite reaction.

Predictably, several smaller B/D clients have expressed renewed interest in Venezuela and they are actively gaining market share.  We believe that the “herd mentality” has gripped the largest B/Ds and there is an audible uncoupling of Venezuela desire.  The first movers to pick up this market segment may – assuming their risk/compliance controls are perfectly in place/executed – may have their day in the sun after-all.

Compliance to FACTA’s Reg E re Truth In Lending becomes even more onerous to the Lender as outlined here:

Why does this matter?  Specifically, the B/D becomes far more responsible to the chain-of-custody when lending to a client in any capacity.  Just a quick snapshot of the B/D must do is below:

“To implement the final rule, financial institutions will have to update their policies and procedures, training, and computer systems. Given the complexity of the changes, it is important that financial institutions start the process early and rigorously test their systems for compliance. Specific issues should be discussed with the CFPB and your primary regulator.”

Compliance is driving strategy for many institutions and ironically, seems to outweigh the risk of Sovereign default, geo-politics, human rights abuses and even anti-Americanism.  I’m not waving the flag but simply noting that compliance is the driver for change here – not vanilla risk.  This is the world we live in and evolving is key to growth.

Reach out for an off line conversation with real world examples – S


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