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Fortunately, there have been some positive changes in 2017. Despite our trading difficulties, we managed
to improve the lines of communication with Jeffrey and his team and they appreciate the relationship. In
the summer, Jeffrey hired Paul Barrett to trade for him. Paul used to run the GIO desk at JPM and was
Jeffrey's main coverage when he banked at JPM. Paul is a talented full time trader who understands how
banks work these days. At the same time, we rebuilt our KCP capital markets capabilities and massively
improved our coverage from a trading standpoint. We were able to quickly reinstate the ISDA and onboard
him back into global markets. We now have a strong and consistent flow trading relationship across equities
(including syndicate), fx and rates, both cash and OTC.
We have the opportunity to grow this relationship to more than $1mm of trading revenues and should be
able to maintain brokerage balances over $100mm and deposit balances between $50mm and $100mm.
Our share of wallet for his trading business will be driven by quality of ideas and ease of execution.
Challenges include the reduction of our branch services (Jeffrey is a major user of our teller services) and
competition from other banks for his business.
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2018 Account Planning
RM contribution
Relationship Name: Third Lake Capital
Banker Team: Stewart Oldfield
GCIS Number: 00000490359
Relationship Team:
ISG: Andrew King
DPM: Paul Bartilucci
KCP: Matt Glassman
Lending: Laura Farischon
Client Profile
Trust/Custody:
WPS: Sam Petrucci
Deposits: Charlie Burrows
Other:
Third Lake Capital (TLC) is a single family office that exclusively manages the capital of the family of Ronald
Wanek (Forbes 400 family), founder of Ashley Furniture. Established in 2013, TLC is an investment firm
primarily focused on the following investment activities:
•
Traditional private equity investments
•
Direct real estate investments
•
Selectively investing with established third-party managers including private equity funds, private
debt funds and hedge funds
This relationship was brought to Deutsche Bank by former banker Paul Morris in October 2014 and managed
by Stewart Oldfield thereafter. There is weekly contact with the family office. DB currently holds over $80mn
in AUMs for the Wanek family's wealth. This includes trust deposit accounts, CD's, DB AG accounts, and
personal joint accounts. Aside from DB, the family has banking relationships at Goldman Sachs and TD
Ameritrade. Current contacts for this relationship are:
•
Ken Jones— CEO
•
Paul Watson — CIO
•
Robert Forsythe — VP Investments, grandson of Ron Wanek
Ashley Furniture is the world's largest furniture manufacturer and retailer headquartered in Arcadia, WI. The
company is owned by father and son team Ron and Todd Wanek. Ashley Furniture manufactures and
distributes home furniture products throughout the world through two distribution channels: independent
furniture dealers and more than 500 Ashley Furniture HomeStore retail stores which are independently
owned and operated by licensees in the US, Canada, Mexico, Central America, and Japan.
Family net worth is estimated at 53.0bn, most of which is Ashley.
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Opportunities and Challenges
Third Lake is a relatively new family office and our relationship has grown steadily as they have grown.
The family office initially focused on making direct private investments, but that has changed and they are
focused on building a more diversified portfolio with more external management
The family has started to increase the annual distributions they take from Ashley, so their investing has
ramped up. They have focused on a lot of real estate and structured finance funds. They understand
consumer risk quite well and like yield. We show them all ISG fund offerings and expect to focus on Harvest
in O1. They were very interested in Virage, but our mandate there fell apart.
They are also highly underexposed to public equities and looking to catch up. However, there is a debate
between the family office and the family about how much risk is appropriate to take in this area. We have
agreed to discuss DPM as a potential solution early this year.
On the lending side, we occasionally get the opportunity to look at commercial mortgages via the
investment bank. They also own a consumer finance business that is growing quickly and will need a
conduit line or other structured credit solution.