Mark Fidelman has consulted to financial transaction and financial services clients for over 15 years.
Types of financial transactions
- Revolver and term loans; financial guarantees (addressing the effects of passive association, as warranted); hybrid and preferred stock instruments; letters of credit; cash pools; surplus notes for insurers
- Performance guarantees, including for supplier/lease contracts; related-party guarantees serving in place of surety bonds or bank guarantees for the construction industry; counterparty guarantees for trading entities; insurance claims guarantees
- The pricing of insurance contracts between a captive insurer and its affiliates
Indicative projects
- Defend a fee for a construction performance guarantee to US and German competent authorities, incorporating a model based on the Basel Accord to defend a return on the guarantor’s capital
- Developed a model for pricing a performance guarantee attendant to the sale of a finance company subsidiary
- Established the yield on a hybrid instrument for a pharmaceutical firm via loan and preferred stock benchmarking
- Benchmarked financial and claims guarantees for property/casualty reinsurers
- As a model for the pricing of product liability, property, and marine premiums for a captive of a global industrial corporation, loaded projected losses developed from loss experience and/or actuarial loss exposure modeling with a return on capital benchmarked from statutory insurance financial accounts
Types of financial services transactions
- Insurers and reinsurers: Reinsurance commissions/overrides, reinsurance premiums, and commutations premiums; cost recharge models; intercompany services; asset management fees.
- Banks: Trading books in interbranch or separate legal entity structures; sourcing revenues between a branch and a subsidiary in the same territory; relationship managers and other sales/origination functions; cost recharge models; treasury funding; securities lending; transactions services
- Investment management: Benchmarking the origination functions in a traditional asset management context or for hedge funds and private equity groups; benchmarking the portfolio management function; cost allocation models; designing revenue splits for investment managers operating in multiple locations
- Insurance brokers: Apportioning the value chain of the business as to functions and locations; establishing the compensation for intangible property within the value chain (e.g., analytical thought leadership, customer relationships); cross-border service recharges
- Securities brokers: Compensation for the sales/origination function, execution function; revenue splits between branches or separate entities
Indicative projects
- Developed a model for the establishment of the arm’s-length range of override for reinsurance/retrocession transactions of professional reinsurers
- Calculated the arm’s-length range of premiums for a commutation of claims between the insurance captives of a professional services firm
- Developed a model to true up a branch’s funding charges from its German head office, successfully defended the model under audit by the Service
- Developed a model for apportioning revenues between offices of a US-headquartered asset manager, successfully defended the model under examination by HMRC