Read the full Originate Report October edition here.
Consistently maintaining and building a successful business over the course of nearly two decades is impressive. Doing so with the same funding partners still together and the majority of its original employees still on the payroll is even more so. That’s exactly what Boris Dorfman, (Fund Manager and One of the Founders) of LBC Capital, has accomplished by focusing on fostering quality relationships and nurturing in-house talent. We had the opportunity to catch up with Boris to chat about his approach to lending and what makes LBC Capital such a unique organization.
Nurturing In-House Talent
A recent Gallup poll indicated that nearly 21% of millennials—the largest contingent of the U.S. workforce—have switched jobs in the past year alone. LBC Capital is certainly going against that trend—opting to nurture talent from within and giving its employees opportunities to advance or pursue new ventures. “The team-oriented environment and the people we have are what make LBC Capital Unique.” Boris explains. “I started out with both of my original partners, and we still work as a team on a daily basis.”
Promoting from within gives LBC Capital the intrinsic value of experience. Its employees have learned the ropes and are able to offer their informed perspectives and market insights to customers—resulting in an optimal experience for all parties involved in each and every transaction. “Our customers truly enjoy working with us,” says Boris. “They immediately recognize that our staff knows what they are talking about and are able to trust them to handle their finances.”
Flexibility + Independence = LBC Capital
The lending industry, like any other, is perpetually evolving. New trends, techniques and practices are always being implemented or phased out. Customer preferences fluctuate based on market dynamics and economic stimuli. Thriving in such a fluid environment requires both intuition and flexibility—characteristics that LBC Capital has in droves.
That didn’t happen by accident either—Boris attributes LBC Capital’s resilience to change and ability to adapt to constantly changing business demands to its unique structure: “We are not layered by restrictive institutional guidelines. We have the flexibility to extend to cover the right deal.”
But just how do you know what the ‘right’ deal is? There is a plethora of aspiring investors and entrepreneurs all vying to tap into capital streams to fund their objectives. “Lending is very much a relationship-based profession. I think the best way to describe my approach is very much premised on common sense underwriting,” Boris says. “A lot of the time it is not so much about the underlying deal. Of course it has to be viable, but what I am truly focused on is who the borrower or borrowers are as a person—working with an outstanding team who shares the same values and vision as we do here at LBC Capital significantly enhances the chances of success.”
There is a notable increase in the amount of institutional money involved in the modern lending industry—a trend that has functioned to increase the competition for business. For LBC Capital, standing out from the crowd involves intentional and regular refinement of their craft. “Our employees are always attending events, presenting on topics they have years of experiencing in,” notes Boris. “Learning, Speaking and Teaching at these conferences not only makes our workers more knowledgeable, but it also builds relationships. Borrowers want to partner with a company that knows what they are doing—what better way to do it than to go out there and interact in person?”
There are some aspects of businesses that you simply can’t put a price tag on—one of which is consistency. “When COVID-19 hit we had our best month financially,” says Boris. “We have our own funds in-house and are not dependent on the secondary market like traditional banks.” This ability to produce results regardless of external factors coupled with a customer-oriented approach emphasizing communication and transparency is a proven formula for success—one that LBC Capital plans to continue to implement.