Conference Aims to Set New Strategies for the New World

Now three years since the onset of the global pandemic, the asset-based capital market, like so many others, finds itself at a new beginning. While the economy and environment continue to shift, the asset-based capital community has taken uncertainty into account for its business plans as it marches into a new year. SFNet’s ABCC theme, “The Great Reboot,” is about setting new strategies for a new world.

The ABCC runs in conjunction with TMA's Distressed Investing Conference, featuring the ever-popular Joint SFNet/TMA Reception, held on February 1, 2023, and sponsored by White Oak Commercial Finance, Siena Lending Group, Parker, Hudson, Rainer & Dobbs LLP and Cadence Business Finance.

Time is limited, but still an opportunity to join SFNet in Las Vegas from January 31-February 1 for thought-provoking discussions on the economy, geopolitics, talent recruitment and retention, credit quality, industry dynamics and more. 

“It’s so hard to imagine that it’s been nearly three years since the start of the COVID pandemic,” Barry Bobrow, managing director, head of Credit Markets, Regions Business Capital, said.  “Attendance at in-person events has been challenging, but based on numerous recent events we believe that ABCC 2023 will be extremely well attended.”

“We’ve been able to bring together some of the best minds in the space to help us put these changes in context and offer practical implications for our business plans going forward,” Rich Gumbrecht, SFNet CEO, said.  I don’t know if we’ve ever had a more august set of speakers.  You’ll want to take good notes.”

Following a morning of SFNet Committee meetings, the Conference will kick off with a lunch and panel, “Private Equity Adapts,” starting at 12:30 p.m., featuring a conversation with a leading private equity partner, Kevin Meyer, managing director at Churchill Asset Management, who will interview Olivier Sarkozy, founder and managing partner at private equity firm Further Global. Previously, Sarkozy was a partner and head of financial institutions investing at Carlyle. Prior to joining Carlyle, Sarkozy was global co-head of the Financial Institutions Group at UBS Investment Bank.

Attendees can continue the conversation during an hour-long Networking Central, sponsored by Gordon Brothers. Following the networking break is the Real Estate in Transition panel, featuring moderator Weston Garrett, managing director, Corporate Real Estate Solutions, Regions Bank and panelists Jason DeWitt, managing director, JLL Capital Markets and Joel Schneider, senior vice president, Hilco Global.

Real estate values have become increasingly volatile over the past several years. This multi-disciplinary panel of real estate professionals will discuss trends impacting the market for office, industrial and retail properties and will look forward into expectations for 2023 and beyond. 

“As we enter a post-COVID phase where work from home and hybrid work situations continue to take root, the office market will be volatile,” Schneider said.  “There is no ‘one size fits all’ solution…not every office building will be able to be converted to residential or hotel.” On the retail side, Schneider said brick and mortar retail shops are “far from dead, but it will continue to morph in all kinds of ways.”

“The run-up of industrial rents over the last two years has been almost unprecedented, Schneider added. “Will this likely continue into 2023? How long will industrial landlords continue to have the upper hand?”

Immediately following will be the Economic Outlook with Speaker Michael Skordeles, senior macro U.S. Strategist, Truist Financial, who will help attendees understand the effects of geopolitical disruptions, supply chain issues and inflation. These weighed heavily on the economy throughout 2022 and continue in 2023. Also examined will be the Fed’s response with historic rate increases, raising the specter of a recession. The focus of the financial markets is on the direction of the economy more than ever as we enter 2023.

The day will conclude with the Opening Reception, sponsored by Holland & Knight LLP.

Following the Breakfast on Day 2 of ABCC will be the ABCC Capital Markets Update 2023,sponsored by Bank of America. The broadly syndicated markets for bonds and loans experienced significant disruption in 2022 as concerns over the direction of the economy rose and the Fed aggressively raised rates to combat inflation. While the private debt market had a very strong year, it is also subject to the same concerns over the economy, and at year end fund raising and increasing leverage had a meaningful impact on pricing terms and liquidity. At the same time, the asset-based market continued its torrid pace from 2021, combining with low losses to provide market participants with record levels of profitability. This panel of capital markets professionals will provide their views on where that leaves us for 2023 and beyond.

Barry Bobrow of Regions Business Capital will be the moderator. Panelists will include Cole Buckfelder, managing director, Wells Fargo Capital Finance; Maria Dikeos, director of Loans Analytics & Head of Global Loans Contributions; and Jessica Neils, managing director, Churchill Asset Management.

The Private Debt Front and Center panel will follow. Private debt has had a breakout year in 2022 as the broadly syndicated markets have faltered. Though record volumes were invested in 2022, year-end pressure on credit quality and additional fund raising placed a premium on quality and returns. Lincoln international, a global investment banking advisory firm specializing in mergers and acquisitions, capital advisory and valuations and opinions services, will provide proprietary private market data from its Valuations & Opinions Group and moderate this panel of private debt professionals, exploring current market trends and expectations for the future direction of the market. Smitha Balasubramanian, managing director, Lincoln International, will serve as moderator.

Asset Values in an Age of High Volatility will be the lunch discussion, featuring panelists Wendy Eng, senior managing director, head of Operation, Gordon Brothers; Becky Goldfarb, managing director, Retail Valuations, Gordon Brothers; Robert Himmel, head of North America Commercial & Industrial, Gordon Brothers; and Alex Sutton, managing director, head of Research, Gordon Brothers.

All asset classes, from receivables to inventory to fixed assets and intangibles, have experienced wide fluctuations in the past three years as a result of multiple factors, including the unprecedented injections of funding from central banks, the disruptions to food and energy markets resulting from the war in Ukraine, supply chain disruptions, particularly those resulting from COVID shutdowns in China, changing consumer behavior as the COVID pandemic has evolved and, of course, the rapid increase in inflation. The significant volatility in asset values has made the ability to determine the value of collateral more important than ever for asset-based lenders. Panelists will examine the causes and magnitude of recent asset volatility, and will provide guidance from experts across a wide range of asset classes on what to expect in 2023 and beyond.

Is the Long-Awaited Wave of Restructuring Finally Here? will be the final panel of the conference. With interest rates and recession concerns rising sharply during 2022, expectations are high that there will be an increase in restructuring activity in 2023. How this develops and what the critical issues for debt holders will be is the topic of this discussion, led by Moderator Steve Hessler, partner, Sidley Austin LLP and featuring panelists Steve Coulombe, managing director, BRG Corporate Finance; Surbhi Gupta, managing director, Houlihan Lokey; David Nemecek, Partner, Kirkland & Ellis LLP and Matthew Perkal, partner, Brigade Capital Management. 

"Tightening covenants, rising interest rates,  and the inter-connectedness of industries and markets all point to increased workout activity," Hessler said. "It’s becoming harder for distressed borrowers to fix over levered capital structures out of court, given the constriction in readily available credit to facilitate consensual outcomes, though it may take some time for this distress to translate to an uptick in Chapter 11 filings.”  

Last, but not least, the Asset-Based Capital Conference will conclude with the Joint Reception with TMA's Distressed Investing Conference, sponsored by White Oak Commercial Finance, Siena Lending Group, Parker, Hudson, Rainer & Dobbs LLP and Cadence Business Finance.

SFNet will also offer a lineup of virtual panels that attendees can stream at their convenience during the conference. Potential topics include advocacy, junior talent, real estate, supply chain and legal issues.

Please check back for details as we continue to update this page.