Shadow Banking: Regulatory changes generating new opportunities

Tightened lending standards, coupled with a stricter regulatory environment, have curtailed banks’ willingness to extend credit for middle market, private and unrated borrowers. At the same time, the need for growth capital and creative solutions has been increasing. This has created an opportunity for direct-lending funds to fill this void in the market. Please join us as our panel of experts share their views on this opportunity set, including the expected returns and understanding the potential risks.

Date: Thursday, October 24, 2013
Time: 4:30pm – 7:00pm
Panel discussion followed by hors d’oeuvres and cocktails
Location: The Racquet Club of Philadelphia; 215 South 16th Street, Philadelphia, PA 19102
Cost: Members free; Non-Members: $100

Erik Falk (Panelist)

Co-Head of Leveraged Credit – KKR Asset Management

Mr. Falk joined KKR in 2008 and is co-head of Leveraged Credit and a member of the Portfolio Management Committee at KKR Asset Management. Erik is a a member of the boards of directors of the LSTA and Corporate Capital Trust. Prior to joining KKR, Mr. Falk was a Managing Director at Deutsche Bank Securities Inc. where he was most recently global co-head of the Securitized Products Group. Prior to that, Mr. Falk worked for Credit Suisse First Boston where he was a Director in the Asset Backed Securities department. Mr. Falk holds a B.S. and an M.S. from Stanford University

T.J. Theodorsen, CFA (Panelist)

Senior Vice-President, Alternative Investments Portfolio Manager, AXIS Capital

Mr. Theodorsen has been evaluating and investing in hedge funds for over a decade. In his current role with AXIS Capital, he is responsible for hedge funds, fund of funds, long equity and direct lending. With respect to direct lending, Mr. Theodorsen has met with over thirty direct lending managers and has invested in three. Previously, Mr. Theodorsen was with Merrill Lynch where he managed proprietary Merrill Lynch assets invested in hedge funds and was also the portfolio manager of the Merrill Lynch Global Equity Long Short FOHF. Before Merrill, he was with K2 Advisors as an Equity Long Short Analyst. He began his asset management career with Morgan Stanley Institutional Asset Management. Mr. Theodorsen is a CFA Charter holder and has an MBA and BS from Carnegie Mellon.

Scott Lavelle, CFA, FRM, CAIA (Panelist)

Director of Investment Advisor Research, PNC Asset Management

Mr. Lavelle is Director of Investment Advisor Research at PNC Asset Management. In this role, Mr. Lavelle is responsible for the Investment Advisor Research Group, which is responsible for the evaluation, selection and monitoring of investment solutions for use by the organizations ultra-high net work, institutional and high net work business lines. IARG evaluates both traditional, long only products and alternative strategies. In addition, IARG performs operational and counterparty risk analysis. Mr. Lavelle is a member of the Portfolio Construction Committee and chairs the Investment Advisor Research Committee. His focus is on delivering a platform of best in class investment products.
Mr. Lavelle joined PNC as an Investment Portfolio Analyst in the Investment Advisor Research Group where he was responsible for due diligence on prospective and current investment managers across equity, fixed income and alternative strategies. He also participated extensively in a number of strategic projects.

Prior to joining PNC, Mr. Lavelle was an Investment Analyst at Sage Financial Group where he was responsible for manager due diligence and asset allocation modeling. Mr. Lavelle also managed fixed income and equity portfolios at Wells Fargo Wealth Management. He began his career as an equity trader in 1998. Mr. Lavelle received a B.S. in Finance from Boston College in 1998. He has earned the Chartered Financial Analyst (CFA) designation, and also holds the Chartered Alternative Investment Analyst (CAIA) and Financial Risk Manager (FRM) designations.

Afroz Qadeer (Moderator)

Founding Partner of Tapestry Asset Management (“TAM”), a boutique alternative investments firm, in 2002 which was acquired by Equinox Financial Group in 2013. Afroz has been active in alternative investments since 1993. Prior to founding TAM, Afroz was responsible for hedge fund research and portfolio management at Goldman Sachs (GS) (1998-2002), Optima Fund Management (1996-1997) and Lake Partners (1993-1996). Over a 10 year period Afroz launched 8 multi-manager funds, was responsible for 20 multi-manager portfolios, and served as portfolio manager of 4 fund of hedge funds with assets of c. $2bn. While at GS, Afroz served as a Member of Goldman Sachs Hedge Fund Strategies Group’s Investment Committee and as a Member of Goldman Sachs Hedge Fund Operating Committee. Prior to working at Lake, Afroz was an Analyst at Redshare Investments in London and prior to that he was a Manufacturing Executive at Chain Link Industries, Sabhan, Kuwait. Over the years Afroz has actively participated in and/or moderated events for the Mid-Atlantic Hedge Fund Association, the Managed Funds Association and the Greenwich Roundtable. He has served on the Best Practices Subcommittee of The Greenwich Roundtable and provided editorial insight on working papers. In October 2007 he authored a piece titled “India, what to do?” which was featured in the Managed Futures Association Reporter.
Afroz holds an MBA from The Wharton School, University of Pennsylvania and a Bachelor of Commerce from Sydenham College, University of Bombay, India and is listed with the CFTC as a principal and registered as an associated person of TAM. He is an associate member of the National Futures Association.