First Capital Investment Corporation, a publicly-registered, non-traded business development company, announced additional changes to its new line-up of senior executives following the strategic investment by StHealth Capital Partners LLC. According to a filing with the Securities and Exchange Commission, the company’s chief compliance officer and newly appointed chief financial officer, treasurer, and secretary will no longer be serving in such capacities.
StHealth recently agreed to acquire First Capital Master Advisor LLC, the entity that owns the company’s investment advisor, in exchange for a secured promissory note payable over time.
First Capital also changed its investment focus from debt and commercial assets to healthcare investing, which roused the ire of chairman Bob Froehlich, who subsequently resigned in a strongly worded letter blasting the company’s management and new investment focus.
Two weeks ago, the company announced that Paul Saint-Pierre would serve as the company’s CFO, treasurer, and secretary, as well as its interim chairman of the board. Saint-Pierre informed the company that he will not be filling the appointments but will instead serve in the modified capacity of senior advisor to the company.
First Capital has appointed David Lessen to fill the management roles but will leave the board positions vacant for the time being.
Additionally, Jeffrey Silverman has resigned as chief compliance officer, a position he has held since September 2017. He will be replaced by Derek Taller, the company’s recently appointed CEO, who will also serve as the company’s president and anti-money laundering officer. Taller is also a director and officer in FCIC Advisors LLC, the advisor to the company. See below for bios of Lessen and Taller.
The company noted that the management changes were not related to any disagreement with its operations, policies or practices.
Lessen has more than 25 years of financial experience and was previously the CFO and director of Cerebral Assessment Systems where he sourced and managed investment banking relationships, led capital raising and strategic partnership initiatives, restructured the company’s debt, and oversaw treasury and accounting activities.
He previously held managing director roles at Atlas Financial Partners, Broadpoint Gleacher, UBS Investment Bank, and held various capital markets roles at Zurich Capital Markets, JP Morgan, Toronto Dominion and Goldman Sachs.
Lessen holds a bachelor’s degree in mechanical engineering and a master’s degree in aerospace engineering from Cornell University. He received a Ph.D. in theoretical and applied mechanics from Rensselaer Polytechnic Institute and an MBA from Cornell University’s Johnson Graduate School of Management.
Taller is the CEO of StHealth Capital and previously served as managing director of LG Investments, a New York-based multi-family office. He has healthcare expertise and has originated, structured and executed both public and private investment and financing deals.
Taller has conducted research at New York Medical/Rockefeller, King’s College London, Cancer Institute of New Jersey, UC Berkeley and UCSF. He holds a Ph.D. from the Cancer Institute of New Jersey-RWJ Medical School.
First Capital Investment Corporation is a $500 million offering that seeks to invests in private U.S. small- and middle-market companies. The BDC invested approximately $6.6 million in seven portfolio companies and raised approximately $6.1 million in investor equity, as of September 2017.