In looking to Medallion Business Credit’s future, Adelson takes a hard look at the dynamics of the current marketplace. “As I look around, I see most people out there leading with product. From my perspective, you can’t lead with product in this marketplace. You have to lead with solutions … you have to be creative and innovative and you have to be able to do that quickly. Historically, banks haven’t been able to do that. Banks have a hierarchical approach to decision making and that doesn’t allow for growth nor the ability to deliver the kinds of things that private equity firms or business development companies need them to deliver. At Medallion, we have that ability. Of course, I need to prove that to the marketplace and our shareholders.”
From a geographic standpoint, the business will concentrate its efforts primarily in the Northeast but Adelson sees expansion on the horizon. “While I don’t quite see a national platform, I can see us expanding into the Midwest and down into the Southeast. At this point, we won’t rule out anything because there might be an opportunity to acquire an attractive business. We are very acquisitive and look at companies all of the time. They don’t have to fit into a certain box.”
Simply put, Adelson envisions Medallion Business Credit not only as an asset-based lending shop, but as a multi-product, multi-pronged organization with the ability to offer creative solutions to borrowers who are either experiencing growth or in some form of transition. He adds, "Also, having the ability to team with our sub debt group to offer a total capital structure solution or unitranche will greatly enhance our presence in the PE world."
He states, “We won’t be a lender of last resort but will do some tough collateral loans. Our staff has a great deal of lending experience so we won’t shy away from these types of loans if the opportunity arises and it makes sense to pursue that opportunity.”
Looking back one last time, Adelson attributes his success to two things: his many mentors and his own intestinal fortitude and willingness to embrace opportunities as they present themselves. In terms of his mentors, “My uncle Harris Epstein got me into the business and from an on-the-job training standpoint, I learned from Fred Farone and Lou Rubin. Mostly it was Fred who molded my career … he was a font of knowledge. He continued to guide me beyond my years at Security Pacific.” Adelson also credits others; most notably Mike Litwin, Dave Kantes, Andrew Tananbaum and Larry Marsiello. “Each part of my career and each part of my life from a work perspective had different mentors … it wasn’t just one person. But the other thing is I wasn’t afraid to take on something different. I wasn’t afraid to ask questions over and over until I understood an issue at hand. It takes that kind of attitude and it took those kinds of mentors who would expose me to opportunities; and at times, allow me to get to the precipice of failing and not letting me fail.”
Adelson concludes by speaking to the future of Medallion Business Credit. As he approaches his second week on the job, he explains, “We will start things rolling by putting together our structure and getting our message out to the market. We want to make sure our portfolio companies understand that we are supportive of their businesses just as we have been in the past … that they have a lender who is prepared to support their growth and meet their needs otherwise.
“Ultimately this is why I’m here: to create a powerhouse in the markets we serve. My career stands on its own as does my reputation. I wouldn’t risk those for the world if I didn’t believe in my abilities and the company’s ability to accomplish this goal.”