IBJ Schroder's New Commercial Finance Unit Names CEO

Article excerpt

A newly formed commercial finance company has named a chief executive officer to help it stand out in equipment leasing crowd.

IBJ Schroder Business Credit Corp. has hired Edward J. Fanning, 55, as its president and CEO. Mr. Fanning joined from Heller Business Credit, where he was senior vice president, managing asset-based finance business on the East Coast.

The group is the equipment finance and asset-based finance business of IBJ Schroder Bank and Trust Co., New York, a wholesale bank primarily engaged in middle-market lending.

The $700 million-asset group was formed in January "to bring together all secured lending activities on one side of the bank," said Dennis Buchert, president and chief executive officer of the bank. "The structure allows us to focus our energies on commercial finance, to generate business that we might not as a bank division, and to differentiate commercial finance from other lending areas of the bank," Mr. Buchert added.

IBJ Schroder provides senior debt to transactions that are "already well along in their structure," where equity sponsors, buyout firms, or other banks have already provided equity or advisory work.

It will aim at companies with $20 million to $150 million in sales; this is the "power alley" of middle market banking, Mr. Buchert said.

Mr. Fanning said that the bank's syndication capabilities will complement the commercial finance business, a sector which some bankers call one of the fastest growing in commercial banking today.

"Banks are so interested in the leasing business because it has historically offered higher growth rates and overall rates of return," said James Fishell of Key Corporate Capital Inc. …