12 Comments
 

Definitely not capital markets. These guys are true middle market lenders. Wells is probably try to grow foothill relationships into investment banking relationships over time, but Foothill Analysts/Associates are underwriting commercial credits for the Wells' balance sheet.

From what I've heard it's very well respected within the commercial lending industry, but if you're looking for investment banking, you won't find it there.

 

You guys are all wrong. My old roomate from school interned there in SF. It is ASSET-BASED LENDING. They lend capital to firms on a secured basis.

 

Based on the website, Foothill is secured lending (as the poster above said) versus their IBD group, which is non-investment grade/high-yield lending. Wells Fargo is top in both but the second is where the biggest $$$ is being made (think financing the Burlington Northern deal).

 

Commercial lending is a very broad statement. In essence, PE firms commercially lend. The key is WFF is asset-based lending. For an example, they may issue a term loan to American Airlines in exchange for collateral in the form of airplanes, that way if AA defaults, they have shitty planes on their hands. Also, they are not middle-market lenders. They lend across all capitalizations.

 

I think we all know they are huge corporate lenders. But to budfox, I think you should go for their investment banking first under WFS since your past posts state an interest in banking and this isn't banking.

 
Best Response

Not commercial lending but strictly ABL lending (which can be used for DIPs, LBOs, and Special Situations). While the bank (commercial lenders) tend to underwrite better credits, CapFin/Foothill does strictly tougher and larger credits on a secured basis (no Mezz or Equity but RLOCs and TL's across 10 different core industries). Not DCM as they don't issue/underwrite bonds but do have a strong Syndications platform for their TLs.

Culture is different from rest of the bank (more deal driven, more similar to IBD). Since merger, IBD has increasingly leveraged Foothill's balance sheet to win more left lead roles in mid and upper-mid market deals. Lots of ex-IB folks on the new business side and career bankers on the portfolio side. Typical exit ops include a lot of distressed credit shops, mid-market PE shops, and the occasional special situations groups at the NY IBs.

 

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