ANNUAL REPORT 2017

IT’S PERSONAL Stories of our Remarkable Clients

IDB BANK

2017 Annual Report

TA B L E O F C O N T E N T S

History 04

Leadership

Introduction 06
IT’S PERSONAL
Report of the Board of Directors 10
STORIES OF OUR REMARKABLE CLIENTS
Financials 12

Services
TOWN & COUNTRY 36

U.S. Private Banking 14 NAFTALI GROUP 40

International Private Banking 16 HILLCREST 44
Global Wealth Management 18
POTOLICCHIO 48
Commercial Banking 20

Regional Offices 24 BOX GROUP 52

Treasury Services 26 RED APPLE GROUP 56

IDB Capital Corp. 28

Locations 30

ANNUAL REPORT / 2017

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IDB BANK

History
IDB Bank® is a wholly owned subsidiary of
Israel Discount Bank, Ltd. (IDB Ltd.), which was
founded in 1935 and is headquartered in Tel Aviv,
Israel. IDB Ltd. is one of the largest commercial
banks in Israel and one of the 300 largest banks
in the world, with a network of branches and
representative offices in Israel and abroad.

IDB Bank (IDB) provides private banking and

commercial banking services to its U.S. and
foreign clientele through its main office in
Manhattan, NY; branches in Staten Island, NY;
Brooklyn, NY; Short Hills, NJ; Beverly Hills,
CA; Los Angeles, CA; and Aventura, FL, as well
as a representative office on Long Island,
in Melville, NY. The Bank also maintains
representative offices in Chile, Uruguay and
Israel. IDB Capital Corp.* (IDB Capital®), a
wholly owned subsidiary of IDB Bank, is the
Bank’s broker-dealer.

IDB Ltd. began its U.S. operations in 1949 with

the establishment of a representative office on
Fifth Avenue in New York City. IDB Ltd. was
one of the first international banks to open a
branch in New York City in 1962, when the law
in New York State changed to permit foreign
banks to operate in the state. Israel Discount IDB Bank is a full-service commercial bank licensed by the State of New York
Bank, Ltd. acquired the Hias Immigrant Bank in and a member of the Federal Deposit Insurance Corporation (FDIC), under
1968 and renamed it IDB Trust Company. IDB the name Israel Discount Bank of New York. IDB Bank is a registered service
Bank assumed its current name in 1979. mark of Israel Discount Bank of New York. Member FDIC.

IDB Bank has long excelled in delivering personal

services to its clients, and meeting their business
and individual banking needs around the world *Member FINRA / SIPC.

for more than 60 years.

ANNUAL REPORT / 2017


LEADERSHIP
Introduction
Uri Levin
President & CEO
Since I became President and CEO, I have seen firsthand how
personal client relationships and dedicated leadership have shaped
who we are today, an exceptional bank with an extraordinary
heritage and a promising future.
IDB Bank delivered another year of solid performance and growth.
It is our commitment to personal client relationships, our strong
capital position, our well-managed balance sheet and our ability
to adapt to market fluctuation that drove success again in 2017.
Our special client relationships have contributed to our legacy of
strength and stability, which has been highly regarded by regulators
over the years. In 2017, Kroll Bond Rating Agency’s analysis of
IDB resulted in a deposit rating of A-, senior unsecured debt rating
of A, subordinated debt rating of BBB+, and a short-term deposit
and debt rating of K2.
The report commented on IDB’s “comparatively strong capital
profile, better-than-average asset quality, favorable historical loss
rates, comprehensive liquidity and stress testing infrastructure, and
conservative credit risk appetite in combination with management’s
extensive knowledge of the Bank’s high-profile customer base.”
ANNUAL REPORT / 2017
From very good to great
These ratings reaffirm our financial strength and
recognize the results of our efforts to deliver the
highest-quality banking services to our customers.
The time has come to build on this strong
foundation in order to serve our clients with even
greater distinction in the days ahead. To guide
us, we have developed a comprehensive five-year
strategy to transform the bank from very good
to great. This strategy will continue to build our
leadership position in commercial banking and
U.S. private banking, as well as fully leverage
our position as the largest Israeli-owned bank
in the U.S.
The strategy revolves around building deep and
lasting personal relationships through three
pillars: empowering our bankers to demonstrate
their expertise more broadly and with tailored
offerings; upgrading our IT platforms and
streamlining our operations to strengthen client
service; and strengthening our performance
management and teamwork to assure all
of the above. It is all based on IDB’s unique
characteristics – a bank that is large enough to
provide a comprehensive array of products and
small enough to offer the personal service we
have become known for.
Through our strategy, we will focus our efforts on
two core groups – clients and bankers.
Our clients’ needs are growing and changing.
We have the opportunity to continue meeting their
needs and building on our trusted relationships by
anticipating their business challenges, providing
new and targeted financial products, and doing so
6 / 8
from one generation to the next. As a result, we
believe many more of our clients will choose IDB
as their exclusive financial partner or lead bank.
To serve clients as completely and effectively as
we can, we will continue to attract and develop top
talent to focus on building personal relationships.
We will also further empower our bankers as
national experts with improved systems and tools.
By streamlining processes, saving time, improving
client-banker communications and delivering
more useful products, we will strengthen our
ability to help clients grow their businesses – our
primary objective.
It’s a significant challenge, but we have what it
takes to become a great bank – great financially,
great for our clients and great for our employees.
Becoming a truly great bank is something we
will do together. As always, our people will
be the differentiating factor with their proven
dedication, teamwork and cooperation – ready
for change, ready for the future.
Many thanks to our employees for their
dedication and hard work; to our Senior
Management for their leadership and loyalty;
to our Chairman; the Board of Directors and
our parent bank, Discount Bank Ltd., for their
support and guidance; and especially to our
esteemed clients for your loyalty and trust.
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LEADERSHIP

IDB Bank Leadership

URI LEVIN KIYOUN KIM

President & EVP, Regional Manager – CA
Board of Directors
Chief Executive Officer
MARIO LEMOS
SAGY ASERAF EVP, Chief Audit Executive
EVP, Director of International JACOB BERMAN ORIT ALSTER
Private Banking JAMES LOGATTO Chairman of the Board EVP, Head of Corporate Banking Division
EVP, Director of U.S. Private Israel Discount Bank, Ltd.
LISSA BAUM Banking LILACH ASHER-TOPILSKY Director
EVP, Chief Lending Officer President & CEO
MOISE HILLEL Israel Discount Bank, Ltd. THERESA BISCHOFF
JOAN BURNS EVP, Regional Manager – FL Director Director
EVP, Chief Diversity Officer,
Human Resources, Marketing, DAVE SMITHERS URI LEVIN SAMUEL GORTLER
Corporate Communications EVP, Chief Information Officer President & CEO Director
Israel Discount Bank of New York
LESLIE CASE THOMAS KEHRER
Director TREVOR S. HARRIS
EVP, General Counsel EVP, Chief Financial Officer Director
YAIR AVIDAN
PAUL CAULFIELD DAN TRISTER
Senior Deputy CEO, MAURICE H. HARTIGAN II
EVP, Chief Risk Officer EVP, Treasurer Head of Subsidiaries Division Director
Israel Discount Bank, Ltd.
Director
EUGENE I. ZURIFF
Director

ANNUAL REPORT / 2017


LEADERSHIP
Report of the
Board of Directors
At this pivotal moment in IDB’s storied history,
and on behalf of the entire Board, I’d like to
formally welcome Uri Levin, our new President
and CEO. We have enormous confidence in his
intellect and abilities, as he brings to this position
years of experience in the global financial market-
place, including time as the Chief Financial
Officer, Head of Planning, Strategy and Finance
at IDB’s parent company in Israel.
The new strategy IDB is introducing under his
leadership is a plan the Board embraces, having
spent considerable time analyzing it and making
recommendations before we approved it for
implementation. We firmly believe the timing
is right for these changes, carried out through
specific projects – each with a lead manager and
a dedicated team.
From adding cutting-edge products and services
to upgrading our IT infrastructure, automated
systems and mobile banking capabilities, the
plan will guide us into the future as a dynamic,
competitive, world-class banking organization
that retains and strengthens its highly regarded
personal approach to client service.
ANNUAL REPORT / 2017
10 / 12
We know these changes will take some time to implement, but we
are moving ahead with great confidence, supported and accelerated
by several new senior management members at IDB, who bring
great experience, skills, energy and vision to the Bank. It should be
noted that one of the many reasons for IDB’s success is the strong
working relationship between the Board and management, which
includes regular meetings and consultations. This tradition, which
is rare in banking, improves communication and builds a more
cohesive approach to planning and growth.
Our Board/management cohesion was instrumental in 2017, when
the Bank achieved yet another solid financial performance, as our
new CEO settled in and began planning for this strategic transition.
The year proved that IDB will continue to be a conservative,
well-capitalized and profitable bank, with ambitious plans that we
believe will not impact our conservative risk profile.
As we look ahead, the Board will continue to play an active role,
providing oversight and guidance, establishing performance goals,
reviewing policies and assessing risk in all areas of the Bank. And,
of course, we will focus closely on how the Bank rolls out the new
strategy, especially in helping to develop advanced products and
services in such areas as investment banking and global wealth
management, and in the possibility of forging high-end partnerships
to strengthen our technical capabilities.
With a new strategy at IDB – a bank with nearly $10 billion in
assets, a strong balance sheet, and a well-established and personal
approach to client service – we believe we will accelerate our
growth and continue to prosper by doing what we do best: helping
our growing roster of clients achieve the success they strive for.
Jacob Berman
Chairman of the Board
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LEADERSHIP

Financials

C O N D E N S E D C O N S O L I D AT E D B A L A N C E S H E E T C O N D E N S E D C O N S O L I D AT E D S TAT E M E N T O F I N C O M E

As of Dec. 31, 2017 (dollars in thousands) Year end Dec. 31, 2017 (dollars in thousands)

Assets
Net Interest & Dividend Income 209,320

Investment Securities 2,494,055 Provision for Loan Losses 20,400

Loans, net 5,881,077
Other Assets 945,658
Total Assets 9,321,790
Non-Interest Income

Commissions and Fees 46,527

Liabilities Other Non-Interest Income 6,667
Total Non-Interest Income 53,194

Total Deposits 7,744,195

Total Borrowings 565,615
Other Liabilities 107,733
Non-Interest Expense
Total Liabilities 8,417,543

Salaries and Employee Benefits 89,548

Occupancy, Equipment and Other Expenses 63,221
Stockholder's Equity Total Non-Interest Expense 152,769

Total Stockholder's Equity 904,247 Net Income before Income Taxes 89,345

Income Tax Expense 39,663

Net Income 49,682

Capital Ratios (%)

Tier 1 Risk-Based Capital Ratio 13.59%

Total Risk-Based Capital Ratio 14.70%

ANNUAL REPORT / 2017

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SERVICES

ServicesBanking
U.S. Private
Featured Products & Services

Cash Management

Online Banking
Remote Check Deposit
Business Bill Pay
James LoGatto Automated Clearing House (ACH)
Online Wire Transfer Services
Executive Vice President,
Director of U.S. Private Banking Lockbox
Positive Pay

Global Wealth Management – For personal portfolios, investments

Personal Approach
IDB’s strong full-service private bank continues to develop a
growing, integrated team of highly skilled bankers and wealth
managers. We will continue to focus on the financial goals of
our clients and their families, as well as the financial health of
our clients’ businesses. The Bank’s strategy to improve processes,
update product and cash management services, and streamline
business activity allows us the opportunity to carefully examine
our clients’ financial needs and provide them with tailored
personal and business solutions.
and retirement, our managers in the Global Wealth Management
group meet with clients to learn their long-term goals and develop
successful investment plans.
Brokerage Services – Diverse investment options are available
through IDB Capital, the Bank’s broker-dealer subsidiary. Clients
also have continuous access to information about their portfolio’s
performance through our new SEI platform. Other IDB services
are available online through IDB Invest, our smartphone app for
managed accounts.
Custom Personal Loans – We also offer specialized financing
options, such as custom loans and lines of credit to help clients
build and manage their long-term wealth.

Key Benefits

By maintaining close relationships with our clients and their

families over many years, we have a deep understanding of their
goals and can assist in the management of their personal wealth and
the preservation of assets for the next generation.

ANNUAL REPORT / 2017


SERVICES
International
Private Banking
Sagy Aseraf
Executive Vice President,
Director of International Private Banking
Personal Approach
Many of our longtime international private banking clients
manage personal assets in multiple markets and currencies
across the globe. Our strategic focus on advancing technology
and streamlining processes allows us to provide sophisticated
and timely services while monitoring and optimizing our clients’
financial resources. We will continue to enhance product offerings
and design longer-term financial plans for our clients that may
include a portfolio with alternative products ranging from real
estate to investments in high-tech. Already well-known for our
product diversity, including conservative deposit products, we
will continue to offer clients products that align with their need
for liquidity.
16 / 18
Featured Services
Global Wealth Management – For personal portfolios, investments
and retirement, our managers in the Global Wealth Management
group meet with clients to learn their long-term goals and develop
successful investment plans.
Brokerage Services – Diverse investment options are available
through IDB Capital, the Bank’s broker-dealer subsidiary. Clients
also have continuous access to information about their portfolio’s
performance through our new SEI platform.
Custom Personal Loans – We also offer specialized financing
options, such as custom loans and lines of credit, to help clients
build and manage their long-term wealth.
Key Benefits
With IDB’s extensive resources, which include credit cards, payment
facilities, letters of credit and lending, our clients also have all they
need to make daily transactions. And with full-service offices in the
U.S. and representatives in Latin America and Israel, clients benefit
from our up-close knowledge of various economies and markets.
 18 / 20
SERVICES

Global Wealth
Management

Personal Approach Key Benefits

The Investment Management & Trust departments within the
U.S. Private Banking and International Private Banking divisions
merged to form Global Wealth Management (GWM). This new
department represents more than simply the combination of
two teams. The collective resources allow for greater efficiencies
and improved delivery of services to our clients. Global Wealth
Management remains committed to providing objective and
transparent discretionary investment management services to our
high-net-worth individual and institutional clients.
Featured Products and Services
Our advisors prepare customized plans of nonproprietary
products, integrated to offer the best in current income, future
growth and, of course, safety. Once this approach is accepted
and implemented, we perform fine-tuning and adjustments as
required. We maintain ongoing communication with our clients
and consistently evaluate their plans, always keeping an eye on the
long-term horizon. Whether it’s for wealth preservation, capital
appreciation, education, a legacy gift to a nonprofit or other
long-term plans, GWM has the tools and resources to help our
clients reach their goals. Our investment approach features open
architecture with no proprietary products.

Discretionary Investment Management

Management Trust Services
Retirement Plans
Custody and Escrow

Disciplined Investment Process

Open Architecture with No Proprietary Products
Customized and Tailored Portfolios
Outcome-Based Process to Meet Specific Client Needs

Investment, Insurance and Annuity Products:

Are Not FDIC Insured Are Not Bank Deposits

Are Not Bank Are Not Insured By Any

May Lose Value
Guaranteed Federal Government Agency

ANNUAL REPORT / 2017

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SERVICES

Commercial
Banking
Featured Products & Services

Lissa Baum
Cash Management
Executive Vice President,
Chief Lending Officer Online Banking
Remote Check Deposit
Business Bill Pay
Automated Clearing House (ACH)
Personal Approach Online Wire Transfer Services
Lockbox

One of the main focuses of the Bank’s strategic plan is enhancing Positive Pay

our client experience as well as growing and improving Commercial

Trade Services
Banking services. Our project’s vision includes developing a
national presence in our focus segments and cultivating deep We provide comprehensive solutions for international transactions. IDB Bank’s
relationships with our clients through well-rounded product experienced trade services team helps our clients mitigate their company’s
and service offerings. Our focus segments include: Apparel, Real payment and collection risk, optimize working capital, maximize cash flow and
Estate, Staffing, Healthcare, Not-for-Profit and Technology. We access liquidity.
will also leverage our apparel and factoring expertise by launching
a factoring effort in California as a way to increase our apparel Letters of Credit
market coverage in the other fashion capital of the United States. Collection Solutions
Disbursement Solutions
Account Management

Syndication Desk – Our syndication desk allows our business lines not only to work
on national accounts but also take larger positions in these transactions.

Corporate Lending – In industries such as fashion, food, electronics, trademark

financing and industrial products, we have helped our customers manage and grow
their businesses with traditional loans, deposit management services and specialized
financing.

Healthcare and Not-for-Profit – We provide financing to fund long-term growth.

Depending on the nature of the project, we offer both tax-exempt and taxable
financing structures for expansion and enhancements to our clients’ operations and
facilities in line with their mission and strategic objectives.

ANNUAL REPORT / 2017

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SERVICES

COMMERCIAL BANKING

Israeli Desk – Working closely with our sister company, Discount

Capital Markets, to support the issuance of bonds by U.S. entities
in the Israel capital market, we support and coordinate with Israeli
Institutions (insurance and mutual fund companies).

Asset-Based Lending – We help our clients leverage the value of their

receivables, inventory and other assets by providing the appropriate
financing to help meet their near-term goals.
Key Benefits
Factoring – In addition to cash flow benefits, factoring can provide
credit protection and outsourced credit and collateral management,
Our client/banker relationships are built on trust. IDB Bank
removing the burden of fixed overhead. Our clients utilize these
is committed to providing our clients with the highest level of
assets by maximizing cash flow for operational needs and business
personal service and integrity. We use our vast knowledge and
growth.
expertise to tailor advice and solutions based on our clients’ needs
and financial goals.
Trade & Finance – As one of the top 50 Letter of Credit issuers of
all U.S. banks, IDB’s Trade & Finance department is able to provide
our trade expertise to businesses that purchase and/or distribute
goods in international markets.

Staffing – IDB’s staffing experts help companies that are growing,

financing payroll, covering operational expenses or posting letters
of credit for workers’ compensation. Some of our clients specialize
in the temporary placement of highly skilled technology personnel,
light industrial workers, employees for government contractors,
engineers, and physicians, nurses and other medical staff.

Commercial Real Estate – Whether retail or multifamily residential

projects, offices or industrial parks, hotels or retail shopping centers,
developers look to IDB for our expertise and strong capital base to
provide funding.

ANNUAL REPORT / 2017

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SERVICES

Regional Offices

California Florida
Kiyoun Kim Moise Hillel
Executive Vice President, Executive Vice President,
Regional Manager, Southern California Regional Manager, South Florida

The California region will continue to focus on and grow in our areas
Due to recent market trends and demand, our U.S. Private Banking
of expertise: Private Banking and Commercial Banking, with emphasis
and Lending teams have created and are continuously developing
on Middle Market companies; Commercial Real Estate; Healthcare;
highly specialized niche areas. We will refine our focus in senior
and comprehensive investment planning and management. We look
living, logistics and distribution, medical, multifamily, homeowners
forward to enhancing our service to other business sectors in the
associations and other professional sectors that thrive and are
region, including strategic partnerships to help us grow with our
emerging in our region.
successful client base. One example of this is through a formalized
syndications desk that has the ability to leverage the relationships
As we move into 2018 and prepare for the economic growth and
that we have with the Israeli capital markets to provide a complete
corresponding market coverage in our region, we seek to retain and
and competitive financing package for large financing opportunities.
recruit highly talented and specialized industry experts to maximize
our adaptability, anticipate the evolving needs of our clientele, and
We will also continue to expand our offering of customized and
enhance product and service offerings as the “Personal Bank” for
relevant investment solutions through strategic partnerships with
which we are renowned.
money managers and firms with strong and proven track records.
The Bank’s strong commitment to the California region also features
With the influx of residents moving to Florida daily, new income
an improved sales process and higher regional credit approval
is being generated on a large scale and it’s changing the wealth
authorities. Looking ahead, we will remain dedicated to our esteemed
landscape. Some of this activity may be attributed to the relative
clients and focused on adding value to all of their financial endeavors,
competitiveness of Florida in the wake of federal tax reform and
business and personal.
the increasing attractiveness of Miami as a world-class city. Florida
is estimated to reach a trillion-dollar economy in 2018 – we are
preparing to facilitate this growth now and in the years beyond.

ANNUAL REPORT / 2017

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SERVICES
Foreign Exchange

Treasury Services Transacting business outside of the United States can be challenging. Oftentimes, a
willingness to negotiate payment terms in local currency can open opportunities that
can increase profitability and/or decrease expenses. Markets like China are becoming
more open to negotiating in their local currency (renminbi) due to fears over U.S.
dollar volatility. IDB can offer the products and expertise necessary to manage foreign
currency exposures created by negotiating terms in local currency.

Derivatives
Dan Trister
Executive Vice President, Interest rate exposure can manifest itself in many ways. Borrowing on a floating rate
Treasurer
basis exposes the client to potentially higher interest rates. Borrowing on a fixed rate
basis in a lower interest rate environment may subject the borrower to paying a higher
rate of interest than is necessary. Holding fixed rate assets as rates move higher or
holding floating rate assets as rates move lower could limit income potential. IDB can
offer a variety of derivative products to hedge interest rate exposure. IDB’s experts can
Personal Approach provide customized solutions to help maximize their clients’ interest rate goals.

Treasury Services offers customized products, sound financial Key Benefits

solutions and responsive service. IDB clients benefit from our
innovative deposit solutions that offer security, attractive returns and
IDB Bank’s Treasury Services team helps our clients realize their vision for business
flexibility. We also help our clients navigate exchange rate volatility
growth and success. We are committed to supporting our clients with customized
and the increased risk it generates for businesses with cross-border
products, sound financial solutions, responsive service and expert advice.
activities. As a strategic and key partner to the business lines, Treasury
shares our clients’ vision for financial stability and growth.

Featured Products and Services

Market Linked TDs

Diversification, which may reduce volatility in an investment portfolio
100% Principal Protection* if held to maturity
Tailor-made to suit multiple investor objectives
Potential for above-average returns

*INSURED BY THE FDIC, AN INDEPENDENT AGENCY OF THE U.S. GOVERNMENT, UP TO THE

MAXIMUM EXTENT PERMITTED BY LAW. PROTECTION OF PRINCIPAL IS ALSO PREDICATED
ON THESE DEPOSITS BEING HELD TO MATURITY. ALL IDB BANK STRUCTURED TIME
DEPOSITS ARE SUBJECT TO MINIMUM DEPOSIT REQUIREMENTS; EARLY WITHDRAWAL
PENALTIES ALSO APPLY AND MAY IMPACT PRINCIPAL. NOT ALL TYPES OF IDB BANK
STRUCTURED TIME DEPOSITS MAY BE AVAILABLE AT ALL TIMES AND OUR LIST
IS SUBJECT TO CHANGE WITHOUT PRIOR NOTICE. RESPECTIVE CUSTOMER
DISCLOSURE AGREEMENTS AND TERM SHEETS APPLY. ABILITY TO CUSTOMIZE
MAY DEPEND ON MARKET CONDITIONS AND THE AMOUNT DEPOSITED.
PLEASE CONTACT US FOR MORE INFORMATION.

ANNUAL REPORT / 2017

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SSEERRVVIICCEESS

IDB Capital Corp.

Brokerage Services

Member FINRA/SIPC

Ethan Levinson
President,
Key Benefits
IDB Capital Corp.

More than just accumulating growth in our clients’ portfolios, a good

Personal Approach
As the full-service brokerage subsidiary of the Bank, IDB Capital®
provides brokerage and insurance services to clients of IDB Bank.
We offer a broad array of wealth management services, including
investment management, retirement services, wealth transfer and
business planning strategies. The advisors evaluate products and
securities that are appropriate for their clients’ investment needs:
nonproprietary mutual funds, exchange traded funds, annuities,
alternative investments, individual stocks and fixed income
products. With an array of services – from life insurance and
alternative investments to more traditional mutual funds, debt and
other equity offerings – IDB Capital helps clients with corporate
employee and executive benefit plans, and, more personally, with
a financial strategy that can help clients meet their future wealth
management needs and objectives.
Featured Products and Services
financial strategy enables clients to efficiently transfer wealth during
their lifetime, as well as tailor savings and investment strategies,
end of life obligations and endowment goals. No matter what type
of account, IDB Capital’s clients have the ability to manage their
portfolios online using internet trading tools, real-time account
information and market analysis.
Investment, Insurance and Annuity Products:
Are Not FDIC Insured Are Not Bank Deposits
Are Not Bank Are Not Insured By Any
May Lose Value
Guaranteed Federal Government Agency
SECURITIES PRODUCTS ARE OFFERED THROUGH IDB CAPITAL CORP AND
NOT THROUGH ISRAEL DISCOUNT BANK OF NEW YORK (“IDBNY”). IDB
CAPITAL CORP IS A U.S. REGISTERED BROKER-DEALER AND A MEMBER
OF THE FINANCIAL INDUSTRY REGULATORY AUTHORITY (“FINRA”) AND
THE SECURITIES INVESTOR PROTECTION CORPORATION (“SIPC”). IDB
CAPITAL CORP IS A WHOLLY-OWNED SUBSIDIARY OF IDB BANK AND ANY
SECURITIES PRODUCTS PURCHASED OR SOLD IN A TRANSACTION ARE:
NOT INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION
(“FDIC’), NOT DEPOSITS OR OTHER OBLIGATIONS OF THE IDB BANK AND
ARE NOT GUARANTEED BY IDB BANK; AND SUBJECT TO INVESTMENT
RISKS, INCLUDING POSSIBLE LOSS OF THE PRINCIPAL INVESTED.

IDB CAPITAL IS A REGISTERED SERVICE MARK OF IDB CAPITAL CORP.

Retirement Plans
Financial Strategies
Insurance
Investments
Executive Benefits & Retention
401(k) Plans

ANNUAL REPORT / 2017


SERVICES
Locations
U.S. Locations
NEW YORK
MAIN OFFICE
511 Fifth Avenue
New York, NY 10017
Tel: (212) 551-8500
STATEN ISLAND BRANCH
201 Edward Curry Avenue
Suite 204
Staten Island, NY 10314
Tel: (718) 698-4892
BROOKLYN BRANCH
400 Avenue U
Brooklyn, NY 11223
Tel: (718) 382-4987
LONG ISLAND
IDB REPRESENTATIVE OFFICE
445 Broadhollow Rd., Suite 418
Melville, NY 11747
Tel: (631) 247-4581
NEW JERSEY
SHORT HILLS BRANCH
150 JFK Parkway
Short Hills, NJ 07078
Tel: (973) 379-8699
FLORIDA
AVENTURA BRANCH
Harbour Centre
18851 NE 29th Avenue, Suite 600
Aventura, FL 33180
Tel: (305) 682-3700
CALIFORNIA
BEVERLY HILLS BRANCH
9401 Wilshire Blvd., Suite 600
Beverly Hills, CA 90212
Tel: (310) 860-6320
DOWNTOWN LOS
ANGELES BRANCH
888 South Figueroa Street,
Suite 550
Los Angeles, CA 90017
Tel: (213) 861-6440
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International Representative Offices Subsidiaries
URUGUAY BROKERAGE SERVICES
IDB Capital Corp.
MONTEVIDEO
(Member FINRA/SIPC)
World Trade Center
511 Fifth Avenue
Luis Alberto de Herrera 1248
New York, NY 10017
Torre B Piso 4, of. 409
Tel: (212) 551-8252
Montevideo, Uruguay
Tel: (5982) 622-2257
COLONIA
18 de Julio 320, Ap 101,
Colonia del Sacramento 70000,
Republica Oriental del Uruguay
Tel: (598) 4522-1124
ISRAEL
18 Raul Wallenberg St.
Building D, 4th Floor
Tel Aviv, Israel 697191
Tel: +972 (3) 773-7400
CHILE
Av. Vitacura 2771 Of. 804
Las Condes, Santiago, Chile
Tel: (562) 236-5600
IT’S PERSONAL
Stories of Our Remarkable Clients

vol.5 the next generation.

IT’S PERSONAL – STORIES OF OUR REMARKABLE CLIENTS

TOWN & COUNTRY

NAFTALI GROUP

HILLCREST

POTOLICCHIO

BOX GROUP

RED APPLE GROUP

IT’S PERSONAL
IDB Shares These Extraordinary Stories With You

TOWN & COUNTRY 36

NAFTALI GROUP 40
HILLCREST 44
POTOLICCHIO 48
BOX GROUP 52
RED APPLE GROUP 56

vol.5 the next generation.

 STORIES OF OUR REMARKABLE CLIENTS

TOWN & COUNTRY

Taking the Family Business to Another Level

THEY’RE NOT JUST

A BANK BUT A
TRUSTED PARTNER
WHO HELPS US FIND
WAYS TO CREATE
OPPORTUNITIES.

LEFT TO RIGHT

David Beyda
Chairman

Jeffrey Beyda
President

36 37

When brothers David and Jeffrey Beyda were
growing up in Brooklyn, they fully understood
the ebbs and flows of their family’s home textile
business, which was run by their grandfather, their
father and mother. It was the center of their lives
and the subject of many family meals.
“At 12 years old, I helped move merchandise to the
showroom,” David recalls. “By 15 I was working in
the New Jersey warehouse and driving a forklift,
and as a student at NYU, I was still working part
time,” he adds. “Even on the day I graduated, I was
at the office in the afternoon.”
Founded in 1954 with one product – placemats – the
business, known as Town & Country, has become
a recognized leader in home textiles, specializing
in table linens, kitchen textiles, rugs, towels and
bedding, and other innovative branded products.
“We are the undisputed leader in the design,
manufacture, and import of table linens and kitchen
textile products across all channels of distribution,”
David explains, “and we’re the market share leader
in the table linens and kitchen textiles category.”
Established as a design and sourcing leader in
branded and non-branded product for more than
50 years, Town & Country has also established
a presence around the world, with headquarters
in Lakewood Township, New Jersey, and sites in
Bentonville, Arkansas; Shanghai, China; Shenzhen,
China; Kowloon, Hong Kong; Delhi, India; and
Lahore, Pakistan.
38
Having spent their entire careers with Town &
Country, David, 52, and Jeffrey, 49, are now in
charge. “Because we grew up in the business and
we love our family, we’ve been involved in every
part of it,” David says. “Our lives and business are
together. And we think of our employees as just an
extension of our family.”
In the ever-changing retail business, Town &
Country has done everything possible to stay on top
with its clients, including such leading brands as
Kate Spade and Calvin Klein and retail customers
that include Walmart, Bed Bath & Beyond, Macy’s,
BJ’s, TJ Maxx, Marshall’s, Kohl’s and Dollar General,
to name a handful.
A leading supplier of both licensed brands and
private label programs to major retailers across the
globe, they’re also selling online through Amazon,
participating in the biggest retailing revolution in
generations. A key to their success has always been
the values they learned growing up – “honesty,
integrity, pride in what we do, and respect for each
other, our customers and the company,” David says.
This means being proactive and responsive to
the needs of retail partners, consumers and
manufacturing liaisons; consistently testing and
improving products, and creating innovative designs
and packaging; always delivering value and product
performance; maintaining an on-time performance
record that is among the finest in the industry; and
developing the diverse talents of the company’s
130 employees, including 30 in design and product
development.
To say the least, David and Jeffrey are big on
continuous learning, which has helped the company
move into a new phase. Most recently, the brothers
brought in a leading private equity firm, H.I.G., to
help fuel future growth more quickly than they
could do on their own. “H.I.G. is the right partner for
us,” says David. “They understand our history, our
business, and the growth strategy needed to take
Town & Country to the next level.”
“Next level” will likely mean a more aggressive
acquisition strategy in the home textiles and
accessories sector. “As retailers consolidate, so do
vendors like us,” David explains, “so we’re excited
to pursue new avenues of growth.”
STORIES OF OUR REMARKABLE CLIENTS
LEFT TO RIGHT
CJ Gianatiempo (IDB Bank), Paul Chau (IDB Bank), David
Beyda, Jeffrey Beyda, Michael Gullo (IDB Bank) and Eric
Serenkin (IDB Bank)
Meanwhile, Town & Country has been an IDB client
since 2003. “IDB has been a terrific partner,” David
says. “They played an instrumental role when we
considered working with H.I.G., and they will continue
to play a key role in the future,” David notes. “IDB
understands our business and our challenges, and
has been with us through the ups and downs, again
and again.
“When we bought a business in California some
years ago, IDB helped us do our due diligence and
encouraged us to buy the company, because they’re
not just a bank but a trusted partner who helps us
find ways to create opportunities.
“The only way for a business like ours to succeed is
to have trusting relationships,” he continues. “We
have that within our organization, we have it with
our customers, who are the center of all we do, and
we have it with IDB.”
39
 STORIES OF OUR REMARKABLE CLIENTS

NAFTALI GROUP
Breaking into New York’s High-End
Real Estate Market with a Bang

IDB IS NOT LIKE BIG

BANKS – IT’S MORE
PERSONAL, WITH A
SHARP FOCUS ON
CLIENT SATISFACTION...
REPUTATION IS KEY.

Miki Naftali
Chairman and Chief
Executive Officer

40 41

Miki Naftali grew up in Israel, served in the Israeli
army for five years and wanted to see the world.
He moved to Los Angeles, where his sister lived,
and earned an engineering degree at USC. Little
did he know at the time that he was on his way to
becoming one of the leading real estate developers
in New York City.
Starting as a property manager for a Hollywood
producer who dabbled in real estate, Miki moved
from managing residential properties to identifying
and acquiring his first property in Los Angeles. After
his brief stint in the U.S., in the 1990s, he moved
back to Israel, where he developed housing for the
wave of Russian Jews who were finally allowed to
come to Israel and later developed hotels in Tel Aviv
and Eilat.
In the early 2000s, seizing an opportunity, Miki
relocated to a two-room office in New Jersey to run
a New York real estate start-up for an Israeli investor.
It wasn’t long before he began to understand New
York neighborhoods and the politics of New York
real estate, as he started to acquire and develop
multiple high-end properties that eventually
amounted to an impressive portfolio with $7 billion
in value.
42
“It’s challenging to penetrate the New York market
as an outsider because it’s controlled by well-
established family offices,” Miki explains. “I worked
around the clock because I love taking on challenges
and pushing the envelope. I learned that you can
push both yourself and your boundaries more than
you think you can.”
His most distinguished undertaking to date, The
Plaza Hotel, is a New York historic landmark and
one of the world’s most recognizable brands, which
he acquired for $675 million.
A carefully planned $450 million additional
investment restored The Plaza’s world-famous
interior venues but also transformed the landmark
into a successful mixed-use property containing
a five-star hotel, private residences, celebrated
shops and its famous food hall.
As The Plaza project suggests, the privately held
Naftali Group has led some of the most significant
developments and landmark restorations, with a
talent for identifying and acquiring undervalued
properties in premier geographic areas with strong
potential growth.
LEFT TO RIGHT
Elena Dokianos (IDB Bank), Miki Naftali,
Danielle Naftali, Loren Naftali.
After several years of experience in New York, Miki
decided to start his own real estate firm, forming
the Naftali Group in 2011.
Over the years, Miki has built a portfolio of more than
30 projects, encompassing more than $9 billion in
total value across North America, Europe, Asia
and Israel. This includes 18 luxury condominium
buildings in New York City with more than 1,300
residential units, as well as luxury rental buildings
and mixed-use properties.
Today, Miki is now ranked number 18 on the list of
the top 100 Most Powerful People in New York Real
Estate by the New York Observer. “I am passionate
about designing and creating each building’s unique
story and characteristics,” Miki says. “I love what I
do and have always been very determined, working
on numerous deals at a time.”
These days he has also welcomed his two daughters
into the business – Danielle, who is both the
manager of marketing and design while attending
NYU’s real estate development program, and Loren,
a recent college graduate, who is working in asset
management before moving on to law school later
this year.
“This business is not just about numbers,” Miki
says. “You have to have a vision for the properties
and the neighborhoods, and focus on building
value. The numbers come last.”
STORIES OF OUR REMARKABLE CLIENTS
Having negotiated with billionaires, princes and
prime ministers, Miki says “ego is a big factor that
leads many to fail because they’re not willing to do
the groundwork and learn from brokers and people
in the neighborhood. It’s about asking the right
questions and challenging yourself to execute your
vision to the best of your ability.”
With the Naftali Group’s extensive experience in the
debt capital markets, the firm also assesses and
structures debt quickly on attractive terms. The firm
focuses on development opportunities that produce
superior risk-adjusted returns. Miki appreciates his
partners and lenders, many of whom have worked
with him over the years. IDB is a case in point.
“IDB is not like the big banks others use in our
industry – it’s more personal. They have a sharp
focus on our projects and client satisfaction. We’ve
had a great relationship for many years,” he says.“We
appreciate IDB because they’re quick, responsive
and smart. We work with them in all aspects of our
business, including the debt side of things too,”
helping to finance other real estate companies.
“Reputation is key,” Miki says. “With partners like
IDB, they help us bring our vision to life, correctly
and without undue risks.” No one knows this
balancing act better than Miki Naftali – and with the
track record to prove it.
43
 STORIES OF OUR REMARKABLE CLIENTS

HILLCREST
Seeing Real Estate Opportunities
Where Others Don’t

IDB IS VERY HELPFUL,

AND THEY’RE WILLING
TO WORK ALONGSIDE US.
RELATIONSHIPS ARE THEIR
BIGGEST STRENGTH.

LEFT TO RIGHT

Ryan Afari
Principal, The Hillcrest Company

Fred Afari
Founder, The Hillcrest Company

44 45
 At the age of 18, Fred Afari came from his home in
Iran to study engineering at UCLA, never to return –
a path that set him on a course to become a real
estate magnate in the largest city in the U.S.,
Los Angeles.
Shortly after arriving, his family – trailblazing
industrialists in Iran’s mid-century modernization
era – joined him. They were strangers in a new land
with nothing but their street smarts and ingenuity,
since everything they owned was confiscated in
the Iranian Revolution. Engineers, architects and
businessmen by trade, Fred, his five brothers and
his father went into real estate development during
the boom of the 1980s, mostly focused on projects
throughout Southern California.
In 1988, Fred decided to go out on his own – at a
time when opportunities for developing residential
buildings in Los Angeles began to grow and many
historic buildings were vacant. After the 1994
Northridge earthquake, even more properties
became available at good prices, followed in 1999
when the city began to rezone commercial property
for residential use. This rezoning provided further
incentives, though the risks were still high.
“We saw the potential before others did in what
were considered bad neighborhoods with high
crime rates,” Fred recalls. “Essentially, we were
pioneers in revitalizing these areas. We saw
undervalued and overlooked buildings and wanted
to turn old factories into contemporary loft spaces
and transform bungalows from the 1920s and 30s
into high-end homes.”
46
“At the time, some people thought we were crazy,
but we brought these old buildings to their original
glory and were catalysts in the revitalization of
downtown LA,” says Fred’s son Ryan, who joined
his father in 2014 after gaining invaluable experience
as an acquisitions and capital markets analyst at
Prudential Real Estate Investors.
Since then, Fred and Ryan have worked closely
together at The Hillcrest Company, which has
developed design-driven residential, commercial
and hospitality properties for vibrant, creative and
culturally diverse neighborhoods with compelling
economic profiles.
“I was interested in art and creativity and wanted
to build beautiful things,” Ryan says about joining
the family business. “My interests and knowledge,
combined with my father’s deep experience, were
just right for pursuing nontraditional strategies and
executing grand visions in unexpected places.”
A case in point is the Chapman Building, a
180,000-square-foot high-rise and ground-floor
retail property, which was completed in 2008 and
helped fuel the downtown boom. In 2013, Hillcrest
also started purchasing buildings in an industrial
area that is now known as the Arts District.
Hillcrest’s innovative design concepts and dynamic
amenities speak directly to contemporary tastes
and interests. Because of the firm’s thoughtful
approach to the character and context of each
site, every development is uniquely suited to
elevate the quality of the location.
LEFT TO RIGHT
Kiyoun Kim (IDB Bank), Fred Afari, Ryan Afari
and Rafael Cohen (IDB Bank)
Altogether, Hillcrest has developed over 680,000 For the last few years, Ryan and Fred have
square feet of commercial, office and retail space partnered with IDB to help realize the company’s
and over 2 million square feet of residential space vision. “IDB came through for us in a way others
with more than 2,400 rental and condominium didn’t,” Ryan says. “They understand our vision,
units, primarily in the greater Los Angeles area of and they’re willing to turn a deal around fast.
Southern California. If there are issues, they find a way to work through
them. IDB is super, super helpful, and they’re
And now the firm is actively pursuing acquisition
willing to take risks with us. Relationships are their
and development opportunities in other growing
biggest strength.”
urban centers across the West Coast, including San
Francisco, San Diego, Portland and Seattle. Through these relationships, Hillcrest, known for
staying a step ahead of current trends, will continue
“We take a long-term view, and we don’t cut
to build the neighborhoods of tomorrow, supporting
corners, treating the properties as if they were
emerging new lifestyles with the feel and historical
our children,” Ryan says. “We want to do the
significance of the surrounding environment.
best thing, not necessarily the easiest thing.”
A blend of the new and the classic – we say, bring
While managing city bureaucracies and
it on.
antiquated zoning codes can be frustrating,
he says the result is always satisfying.
“You have to be resilient and find the creative
solutions, which requires educating lenders
and investors about opportunities that aren’t
immediately apparent. Information is the most
valuable commodity,” he explains.
47
 STORIES OF OUR REMARKABLE CLIENTS

POTOLICCHIO
Racing to Success in Real Estate…
and in Very Fast Cars

YOU HAVE TO HAVE

PEOPLE ON YOUR TEAM
WORKING TOGETHER
IN ORDER TO SUCCEED.
OUR RELATIONSHIP WITH
IDB IS SECOND TO NONE;
THEY’RE PART OF THE
TEAM, LIKE FAMILY.

LEFT TO RIGHT

Vincente (Enzo) Potolicchio

Vicenzo Potolicchio D’Accardi Sr.

Christian Potolicchio

4848 49

The Potolicchio family, with roots in Italy, built
their thriving businesses in Caracas, Venezuela,
with interests in construction and real estate
development after starting what became one of the
world’s most successful shoe manufacturing and
exporting enterprises.
With such a solid entrepreneurial background,
it’s no surprise that Vincente Potolicchio, known
to everyone as Enzo, the youngest son of the
clan, caught the bug. He began a construction
and development firm, which he moved to Florida
in 2010, where he broadened it into a booming
portfolio of commercial and residential properties.
“I started in the U.S. by acquiring land in Florida but
soon realized it made sense to capitalize on land
through development,” Enzo explains, as he learned
to deal with a new language and culture and the
sometimes arcane real estate and construction
regulations in America.
“We took a chance at the right time, when
interesting properties became available, and
bet on the growth opportunities in the east coast
Florida real estate market,” he explains. Today, the
company owns 10 properties, including a portfolio
of luxury condominiums in Miami.
But despite the challenges and complexities – and
with the company’s success in the U.S. – Enzo’s
philosophy has remained clear and simple: get to
understand and focus on specific markets and be
careful not to be overextended.
LEFT TO RIGHT
Rod Trzcinski (IDB Bank), Christian Potolicchio,
Vincenzo Potolicchio D’Accardi Sr., Vincente
(Enzo) Potolicchio, Moise Hillel (IDB Bank),
Charles Miller (IDB Bank)
50
“We also bring our family’s values to our many
business operations,” he says. “We still base it on
good old-fashioned trust, when a handshake is
enough to seal a deal.”
With these values, you’d think a thriving real estate
enterprise would be enough to deal with, but Enzo’s
real passion, or obsession, has been race cars. In
fact, he owned a professional race car company and
was a leading professional driver, having won seven
titles and two world championships in the LMP-2
class 24-hour of Le Mans, the world’s oldest active
sports car race, in the endurance category.
Enzo spent his early career racing Formula Ford,
both at home in Venezuela, where he won the
country’s Automobile Driver of the Year award, and
in the American F2000 Champion Series. Today,
Enzo is on the preferred “VIP” list for Porsche and
Ferrari cars. He owns several collector cars, most
notably two Ferraris: a LaFerrari and the LaFerrari
Aperta, both very rare and worth millions of dollars.
“I’ve loved cars since I was 14 years old, but I’m
not racing much anymore – once in a while. I’m
a gentleman driver now,” he says with a chuckle.
“I’m into the race cars for pleasure and as an
investment,” he explains.
STORIES OF OUR REMARKABLE CLIENTS
What do real estate and race cars have in common?
It gets back to trust and integrity, Enzo says. “You
have to have people on your team working together
seamlessly in order to succeed,” he says. The
family’s relationship with IDB is a case in point.
In fact, the Potolicchios have a 33-year private
banking relationship with IDB, starting with Enzo’s
father, Vicenzo Accardi, who’s still going strong at
90 years old. Today, Enzo uses just about all of IDB’s
banking and credit services for his business.
“Our relationship with IDB is second to none; they’re
part of the team, like family,” he says. “And now a
third generation is working with IDB,” as Enzo’s
sons, involved with the family business, also pursue
their own entrepreneurial goals, just as Enzo did.
“IDB is not like a big commercial bank,” he
continues. “It’s very personal, and they’re much
more responsive to us – much better than any other
banks.”
It’s this personal touch and trust that the Potolicchio
family has relied on to build their successful
businesses here and in Venezuela, guiding them into
the future – whether they’re racing a car down a track
or racing to create the next real estate opportunity.
Prior to the release of this book, we were
saddened to learn that Vicenzo Potolicchio D’Accardi Sr.
passed away. Shortly thereafter, Vicenzo’s wife, Maria,
also passed away. We would like to express our deepest
condolences to the Potolicchio family. We are honored to
have had this opportunity to feature Vicenzo’s remarkable
legacy and share their story of hard work, success and
family values.
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 STORIES OF OUR REMARKABLE CLIENTS

BOX GROUP
Getting it Going – From Hot Tech
Start-ups to Hip Athletic Wear

WE GET TO COME BACK AT THE

END OF OUR DAYS AND OUR
CONVERSATIONS ARE FULL OF
CONSTANT INNOVATION AND
THOUGHTS ABOUT HOW WE
CAN BOTH BETTER OURSELVES
IN OUR VENTURE AND WHAT
WE ARE WORKING ON.

David Tisch
Chairman and Chief
Executive Officer

52 53
 You may not have heard of the Box Group, a
small company of four principals that invests in
tech start-ups and continues investing if the
conditions are right. As they say on their website,
“Before there is a company, there is a conversation –
we want to be that first conversation.”
But you probably have heard of some of their
successful prodigies – hot companies like Blue
Apron (the chic food delivery business), Warby
Parker (chic eyeglasses) and Harry’s (chic shaving
razors and personal care items) – all using
technology in creative ways to make a big splash in
their respective markets.
The Box Group is the brainchild of David Tisch, who
helped make New York City a leading tech center
after lagging behind Silicon Valley for so many
years. In fact, David also teaches at Cornell Tech,
the new incubator school located on Roosevelt
Island for like-minded college grads with a laptop
and an idea for a new technology niche.
The son and grandson of entrepreneurs – his
grandfather founded the Loews Corporation, a
diversified Fortune 100 company – David started
out as a computer hacker in middle school and
website designer in high school. And as a self-
described “nerd” while studying at the University
of Pennsylvania, he began to foresee a career for
himself as internet technology emerged, well
before many others did.
His hunch was right and, since about 2007, the
start-up community has become a large part of
New York City’s economy.
54
Meanwhile, David’s wife, Zara, also from a family of
entrepreneurs, had her own ideas about start-ups,
only this time in fashion.
She started a handbag company, whose products
featured leather on the outside with unique
flashes of color on the inside. In partnership with
her best friend, they soon expanded to fashionable
pencil cases.
Today, the company known as Terez (Terez.com)
provides a full line of athletic and casual wear
for women, girls and children, including licensed
brands – all designed by the principals and made
in New York.
LEFT TO RIGHT Zara Tisch and David Tisch
Financing is another thing they talk about. Terez
has been working with IDB for a number of years.
“Zara is very comfortable calling IDB a partner – it’s
much deeper than a transactional relationship,”
David says. “With a firm understanding of the
fashion world’s complexities, IDB has been at the
forefront of helping the Terez brand grow to the
point of becoming global,” he adds.
“Fashion designers and tech start-ups are used
to starting small. They’re both the proverbial
businesses that are founded in a garage. IDB is
one  of the rare lenders that knows how, and is
willing, to help a small business go from nothing to
something spectacular.”
55
 STORIES OF OUR REMARKABLE CLIENTS

RED APPLE GROUP

Maybe Entrepreneurs Can Be Born and Bred

OUR COMPANY HAS A

LONG HISTORY OF DOING
BUSINESS WITH IDB. THEY
ARE A FANTASTIC PARTNER
TO WORK WITH, AND
THEIR DIVERSE INDUSTRY
KNOWLEDGE ALLOWS US
TO WORK TOGETHER ON
MANY DIFFERENT AREAS
OF OUR COMPANY.

John A. Catsimatidis
Principal

56 57
 STORIES OF OUR REMARKABLE CLIENTS

John A. Catsimatidis Jr. grew up with a father who

was, and is, a successful businessman. As his
dad bought, grew and ran a number of successful
companies in a variety of industries under the
Red Apple Group umbrella, John Jr. caught the
entrepreneurial bug early, accompanying his dad
on visits to companies.
In addition to usual kid activities, such as playing
basketball and video games, John developed
computer programming as a hobby, eventually
launching software applications during his time in
high school and NYU’s Stern School of Business,
where he had a double concentration in finance
and management.
Today, John, along with his father, is a Principal
at Red Apple, a conglomerate that owns and
operates assets in the energy, real estate, finance,
insurance and supermarket industries. In addition
to his involvement in the portfolio companies, he
also leads the investment team that manages
approximately $700 million in assets in strategies
such as energy equities and high yield. As part of
the investment team, John also spends time in
venture capital. The firm’s venture investments
range from tech and biotech to banks and media.
“We are highly selective with our investments and
have a disciplined approach to capital allocation.
The downside scenario is just as important to
consider as the upside, and we do everything we
can to avoid mistakes. We see so many fly-by-night
blue-sky investment ‘opportunities’ that I have
actually started a ‘wall of shame’ of bad pitches in
my office!” he chuckled.
As an example of a recent success, Red Apple
purchased the terminals and operations of
Metro Energy, a New York-headquartered energy
business on the brink of bankruptcy that would
leave 130 workers without jobs. Red Apple restarted
the business, expanded it, and today, United
Metro Energy is one of the largest commercial
and wholesale energy distribution companies
in the New York metropolitan area. It has grown
throughout the East Coast and is now a strong
player in several states. United Metro is also a
pioneer and leader in bringing biofuels to the
New York City area.
“With a focus on hard assets, we’re very good at
understanding the potential downside as well as
the upside of any acquisition,” John says. “You
have to fully understand the risk/reward balance.
If we buy, we’re highly confident we will succeed.
United Metro was a great example of this. We are
proud to say the company is doing well and is
expanding quickly.”
This is quite the challenge because the companies
in the Red Apple portfolio are so different – including
supermarkets, energy distribution, gas stations,
a crude oil refinery, real estate development,
insurance operations, investments, aviation and
many others.
John is pleased to call IDB “a fantastic partner to
work with,” primarily negotiating loans for real
estate acquisitions and the energy business. “Our
company has a long history of doing business with
IDB. They are a fantastic partner to work with, and
their diverse industry knowledge allows us to work
together on many different areas of our company.
“IDB is not bureaucratic,” he continues. “They
understand us and work quickly and efficiently,
so we can make deals.” And that seems to be an
ongoing process.

John is also involved in the philanthropic activities of

LEFT TO RIGHT
James LoGatto (IDB Bank),
John A. Catsimatidis
the Catsimatidis Family Foundation, which supports
organizations such as the Police Athletic League
and the Alzheimer’s Association. Independently,
he serves on the Emerging Leaders Council of
the Federal Enforcement Homeland Security
Foundation, which is dedicated to supporting the
families of men and women in law enforcement.

58 59