James Lau Email and Phone Number

Banking / Leveraged Finance/ Financial Sponsors* Co-led revamp to Leveraged Lending Underwriting Guidelines* Spearheaded inaugural corporate finance model milestones for Model Governance including Methodology Documentation, Gating and successful Validation, to be followed by development of Model Performance Monitoring Plan* Lead credit analysis for LBOs and Acquisition Financings, primarily for Middle Market segment with EV sweetspot $80MM to $300MM

* Co-lead development of next version of Corporate Finance model for projection sensitivity and Enterprise Valuation; representative LevLoan analyst for Boston office

* Underwrite new LBOs for Leveraged Finance initiative, (HLT, HRB, backed by Private Equity / Financial Sponsors / Family Offices); review existing Leveraged Loans* Lead development of credit risk-focused underwriting memorandum--conduct Due Diligence / Research & Analysis, develop models for Enterprise Valuations (DCF-based scenario analysis and Market Comparables), derive ratings for PD and LGD* Support transactions sourced by Equity Sponsor Group (ESG) as well as Regional Middle Market banking teams

Providing consults encompassing credit markets, capitalization scenarios and transaction structures, while leading active, finance-focused networking team. Also managing portfolio of personal monies allocated to U.S. equities and ETFs. Investment approach combines value, event-driven and income focus (2018: +3.8% vs CS HF Broad Index, adjusted for normalized cash). Core activity centers around:• Advisory: Consults have included: > Structured Credit - development & presentation of GLG’s inaugural webcast for CLO basics; credit risk assessment of inaugural CLO placement transaction for NY branch of a large Chinese bank; market overview of Structured Credit for Hedge Fund Advisor> Capital Markets - equity raise options for a Scandinavian marketer of native technology start-ups> Credit Infrastructure - core analyst process tied to credit risk dashboard project for NY office of large Western European bank• Leadership / Teamwork: co-founded and manage private, cross-functional network team focused on finance (‘Monday Finance Group’): Focus on market intelligence, accountability and multi-lateral introductions. Weekly meetings include assessment of financial market trends, troubleshooting of hiring market situations, and development of go-forward networking strategies. Members encompass Credit, Portfolio Management, Operations, Institutional Sales, ESG and Equity Research. Active roster at 15 +/-, with 45+ alumni (teammates who have landed professional opportunities).• Market Analysis: Tracking of credit risk issues and CLO market via sell-side axes & commentary (trading levels, new issuance, relative value, etc.), plus Bloomberg screens. Current on capital market trends & issues via regular participation in relevant conferences and workshops organized by data providers (Bloomberg, Risk.net), ratings agencies (Moody’s, Fitch), and sell-side (Houlihan Lokey). Regular credit-focused posts to online platforms, e.g., 1200+ followers on LinkedIn.

Consultant specializing in Credit Risk & Investments, including Middle Market, Leveraged Finance, Structured Credit (CLOs) and Asset Management (CLOs, Bank Loans). Breadth of experience captures Banking, Insurance and Buy-side including BDCs.Advise financial services clients (banks, insurers, asset managers, private equity firms, advisors, etc.) on understanding market issues & existing frameworks, as well as issues in developing new infrastructure for credit-based businesses. > Developed & presented GLG’s inaugural webcast for CLO basics (structured credit-- collateralized loan obligations)

CREDIT RISK MANAGEMENT — PORTFOLIO ANALYSIS, COLLATERAL SECURITIES, AUDITAIGI is a Commercial P&C Insurance company, wholly-owned by Arch Capital Group, Ltd. (Nasdaq: 'ACGL')Recruited to build centralized, corporate Credit Risk Management function. Improved analysis as well as monitoring and management of credit risk across multiple underwriting units (business divisions) such as National Accounts, Construction and Surety. Impacted firm’s ‘credit culture’ positively and built infrastructure, encompassing division-level processes, collateral and counterparty risks, as evidenced by successfully addressing the firm’s top mandates.• Enhanced Credit Modelling and Credit Analysis Approaches: Analyzed 200+ companies across various industries, including application of in-house cash flow credit model and 3rd party econometric default frequency models, plus backtesting of business division usage of same. Synthesized opportunities for improvements to credit analysis approach & process, with corresponding specific recommendations incorporated by business divisions. Reworked internal credit metric model to incorporate modified Altman Z-score and Lease-adjusted cash flow metrics.• Managed Credit Culture, Frontier Projects: Monthly “Arch Credit Call” forum for credit-centric, cross-division discussion, boosting best practices. Credit analysis framework, ‘Watch List” exposure reporting and development of expected credit-based losses (PD, LGD). Sovereign credit risk issues, special credit-centric projects.• Established Frameworks for Counterparty Risk and Collateral Risk: Developed corporate process & policy for managing bank counterparty credit risk exposure, including multi-factor screening model based upon OCC ‘CAMELS’ construct. Advised ceded reinsurance team on framework for reinsurer counterparty credit risk. Developed risk parameters and co-authored investment guidelines for collateral investment securities.

PRIVATE CREDIT — PORTFOLIO MANAGEMENT, STRUCTURED CREDIT, PRINCIPAL INVESTINGFounding member of de novo group that built two primary businesses. Spearheaded CLO principal investing business. Provided investment committee-level portfolio management decisions and issuer-level credit analysis to Cash-Flow Arbitrage CLO fund (collateralized loan obligation). Sourced, underwrote and managed structured credit investments for $300 Million ‘fund of funds’-type portfolio invested across more than two dozen CDO/CLO funds. • Launched $400 Million CLO fund: Senior role in platform design, staffing, structural development and document negotiations. Hybrid middle-market / broadly syndicated bank loan fund was parent company’s inaugural actively-managed CLO fund. Direct coverage for Real Estate, and Lodging/Gaming sectors. Fund generated run-rate cash-on-cash yields on equity to 30% with management fees.• Tripled CDO Principal Investment portfolio: Cash-on-cash yields to ~20%. Identified attractive structured credit investment opportunities driven by structural analysis, fundamental asset-level research, market intelligence and risk/returns. Steered stressed positions through challenging market volatility in 2007-08. Managed multi-faceted relationships with sell-side desks—bank loan trading, CLO structuring and Principal Investing.• Analytics, Policy, Marking: Managed iterative scenario analytics process capturing macro market factors, collateral expectations and waterfall cash flows. Coordinated portfolio valuation and policy activities, including FAS 157. Provided senior guidance to junior professionals and executed transactions focusing on risk/return, including volatility of collateral and cash flow arbitrage, and contractual rights.

PRIVATE CREDIT — PORTFOLIO MANAGEMENT, LEVERAGED FINANCE, STRUCTURED CREDITincludes tenure with predecessor Fleet Securities, Inc.Structured Credit / CLO Investments / Portfolio ManagementManaged $500 Million+ distressed portfolio comprised of principal investments and capital commitments in 30+ tranches across 20+ external CLO funds (primarily leveraged investment vehicles focused on leveraged loans, high yield bonds and special situations/private equity), and $900 Million+ notional counterparty risk in structured transactions. Re-established contacts for several charged-off and distressed investments, with $1 Million+ in capital recoveries.

Leveraged Finance, Financial Sponsors, Leveraged Loan Portfolio Management

Middle Market Leveraged Finance, Bank Loans, Private Equity Sponsors, Ski Resort Banking