Cohort Conversations with Bryan Bean, Drew Healy, & Elizabeth Vosnos

On October 25th, LHC’s latest Finance Cohort meeting explored ‘financing the deal’ in this turbulent environment. Bryan Bean (EVP Corporate Banking, Pinnacle Financial Partners), Drew Healy (Managing Director, Capital Alignment Partners), and Elizabeth Vosnos (Managing Director Healthcare Debt Capital Markets, Fifth Third Securities) gave cohort members perspective on the drivers of the current lending landscape and how to successfully navigate going forward.

Bryan set the stage by discussing how record government spending, low interest rates, and a large government balance sheet led to record levels of deposits across the financial services industry.?The supply and demand imbalance between deposits and loans led banks to invest in securities portfolios, and aggressive portfolio management ultimately triggered some bank failures.?Juxtaposing the dynamics over the last couple years with the fastest interest rate hike in history and the fed shrinking its balance sheet, banks are currently aggressively competing for deposit share which ultimately determines lending appetite.?

Elizabeth noted that the days of fast and loose financing are over.?“Capital is no longer a commodity,” with terms and structures driven by the borrower.?There is much deeper focus on due diligence, understanding how macro-economic trends will impact the business, and sustainability of cash flows.?All lenders have raised the bar on how they deploy capital with more discussions internally about ‘doable vs. desirable’ deals.?As Elizabeth pointed out, “We’ve always looked under the hood of the car.?Now we are disassembling the car and cleaning it with a toothbrush.”

Drew provided stats on the explosive growth in private credit since the great recession, noting the market was ~ $200 billion in 2010 and is now north of $1.4 trillion and growing.?Private credit can play by different rules given its investor base and lack of regulations. Nonbanks are playing a critical role in refinancing credit facilities that are outside the appetite of traditional banks and can also offer a one-stop-shop for borrowers, with the ability to hold much larger credit commitments on a sole basis.?

Regarding overall career advice, the panelists emphasized being your own advocate, thinking about long-term goals vs. a short term pay increase, and prioritizing an in-office work environment over remote / hybrid models to foster personal relationships and mentorships.

The Fall 2023 Finance Cohort is mentored by?Will Howorth, CPA, JD and coordinated by?Megan Brearey .?

Participants: Lacey Benford, MBA , Emmitt Beall , Hal Bouldin, CPA , Rush Brady , John Hardy, CPA , AJ Hermandorfer , Dustin Koctar, CTP , Christopher Lawrence, MBA , Melissa O’Neill , Sloan Patton , Wilna Paulemon, MPH , John Pontius , Brandon E. Sanslow, CPA , Jacquelyn Mammen Thomas , Ashley Williams, MBA

Cohort Conversations is a collection of insights gathered from Leadership Health Care seasonal cohort sessions. The Leadership Health Care cohort program facilitates peer mentoring in a small-group setting centered around a common focus topic lead by an experienced health care executive. Cohorts meet six times in a season. Dates and locations are set in advance by the cohort mentor and cohort coordinator.?

Interested in joining Leadership Health Care? You can learn more about LHC programming here !