Member Spotlight | David Gavigan

ACG WI Member Since: 2018 ACG WI Involvement: Programs Committee, ACG Cup Judge (2019) ACG Cup Mentor (2014-2017), Young ACG Member (2013-2015)

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Why did you join ACG?
I was part the inaugural NextGen Class (called YACG back then) and to this day those fellow class members are my closest professional contacts. ACG simply provides the highest quality professional connections in the greater Milwaukee area. I typically make a great new connection at every event.

What do you think are the biggest challenges your industry will face in the next 5 years, and what actions is your business taking to position it for success in the future?
Banking is so heavily regulated, especially since the GFC, that our product and service offering has become even more commoditized. Ask any CFO that’s gone through an RFP process and I’m sure they’ll tell you the terms sheets all look the same. Given that it’s so difficult to differentiate on the loan side, our firm is investing heavily in our treasury product offering and making sure we have innovative and technologically advanced TS products & services. We’re trying to automate as much of the payment and cash management process for our clients so they can be more efficient. This is a real value add in this environment where human capital is a scarcity.

Additionally, the increase in sponsor owned companies in the middle market space creates a greater demand for higher leveraged financing with more flexible amortization and covenant terms. This type of structure is ideal for non-bank lenders that are funded by institutional investors rather than depositors, and thus less regulated. As such, these direct lending firms can be more competitive with their loan terms vs. FDIC insured banks. Our response to this also fits into our treasury products investment. Non-bank lenders don’t provide the cash management services that traditional banks offer. So, we can still provide a differentiated service to our clients even if we aren’t the primary credit provider.

What do you do for fun?
I play as much golf as my aging body can handle! Despite the fact that I vow to quit the game at some point every season. I think golf has so many parallels to real life – the ups & downs in every round, anger, excitement, the challenge of the game and constant refining and strive to always get better. You’re never done working on your golf game, just like you’re never done working on yourself.