Eppley Limited has managed to snatch two executives of National Commercial Bank Jamaica Limited (NCBJ) as it embarks on deepening its asset management and credit portfolio in the Caribbean.

Raymond Donaldson and Jeffrey A Brown will be joining Eppley on May 3 as Chief executive officer and chief investment officer, respectively. Donaldson was NCBJ’s vice-president – corporate and commercial banking while Brown was the NCBJ’s head of loan structuring and syndications. Justin Nam has resigned as Eppley’s general manager and will depart on May 31 to pursue other interests. Nicholas Scott remains Eppley’s vice-chairman.

“Raymond has extensive leadership experience in financial markets across the Caribbean and a track record of scaling regional businesses. He has consistently demonstrated the ability to lead high-performing teams and deliver results. We are delighted that Raymond will be joining Eppley,” said Eppley Chairman Paul Barnaby Scott in the press release.

The departure of Donaldson and Brown will add to the list of executives at NCBJ and its subsidiaries that have resigned or announced their resignation in the last year. Dr Karlene Bailey, a senior vice-president in the group risk management division, is heading to Massy Holdings Limited as its chief risk officer on May 6. Another division head at NCBJ who joined in mid-2022 resigned within the last month while a vice-president at NCB Capital Markets Limited (NCBCM) has announced her resignation. Donaldson only took on his recent NCBJ role in mid-2023 from Brian Boothe who went onto become managing director at Intuicia Technology Limited.

Some former NCBJ executives have gone onto form consultancy firms with even Euton Cummings, the former senior vice-president for group human resources and facilities division, joining Seprod Limited as its chief strategy officer – human capital on January 1. Former NCBCM Head of Investment Banking Sekou Crawford now serves as group project officer at Musson (Jamaica) Limited. Both Seprod and Musson are chaired and controlled by PB Scott.

Nam joined Eppley in November 2015 as a portfolio manager before being promoted to general manager in February 2020 where he oversaw Eppley’s growing presence in Jamaica and the Caribbean. Nam was promoted to lead Eppley’s executive team and join its board of directors in January 2022. Nam has been in finance for 22 years across different local companies.

“Justin has been an integral part of developing Eppley into the leading regional investment firm it is today contributing to the growth of our credit, mezzanine, infrastructure, and real estate portfolios across the Caribbean. As an Eppley alumnus, we wish him well in his future endeavours. I’ve worked closely for many years with both Raymond and Jeffrey. I know they share Eppley’s investment philosophy and I’m confident that they will continue our proud track record and build our business,” the vice-chairman noted on Nam’s contributions.

The latest movements at Eppley come following the addition of Keisha Smith as vice-president – people on October 26 and appointment of Samantha Summerbell to the role of assistant vice-president – credit on October 11, taking over the role from Adam Hugh who resigned in October. Brown’s new role at Eppley will see him working closely with Summerbell and Denise Gallimore, vice-president of real estate and infrastructure, in growing Eppley’s balance sheet.

Eppley had a strong 2023 as its consolidated net profit jumped rose 112 per cent from $238.80 million to $507.26 million, which was largely as a result of the one-off $230.27 million gain on bargain purchase of a 47 per cent interest in Eppley Caribbean Property Fund Limited SCC – Development Fund. If the bargain purchase was removed along with the consolidation of the Development Fund, net profit would have amounted to about $277.22 million. Eppley’s unaudited fourth quarter report noted that consolidated net profit would be $303 million, excluding the impact of the Development Fund transaction.

Eppley’s income profile has also dramatically shifted over the last decade with insurance premium financing, the company’s main product since 1973, now being the smallest segment of business compared to asset management which made up 43 per cent of income segment in 2023. Eppley manages US$131 million of capital covering Eppley Caribbean Property Fund Limited SCC, Caribbean Mezzanine Fund II and Capital Infrastructure Group Limited. Leases and loans made up 40 per cent and 16 per cent, respectively, of Eppley’s $765.24 million segment income. The entry of Donaldson and Brown with experience at Jamaica’s largest commercial bank broadens the opportunity to grow these segments even further across the region.

Eppley’s consolidated asset base jumped 25 per cent to $7.04 billion due to consolidating the Development Fund which added $1.41 billion in mainly real estate assets to its books. Its loan and lease portfolio were $1.17 billion and $1.63 billion, respectively. Total liabilities marginally increased nine per cent to $4.92 billion while equity attributable to shareholders grew 26 per cent to $1.38 billion.

Eppley, as a standalone company, continues to remain tax free due to it being an approved venture capital company until February 2028. As a result, no shareholder’s interest has surpassed 25 per cent, including that of its largest shareholder Stony Hill Capital Limited, which owns 48,097,800 shares or 24.99 per cent of the company at year end. Stony Hill Capital is beneficially owned by PB Scott and Melanie Subratie. Eppley’s 10 largest shareholders own 177,289,372 shares or 92.11 per cent of the issued shares.

Eppley redeemed its 5.00 per cent Jamaican dollar (JMD) and 6.00 per cent United States dollar (USD) preference shares during 2023 while issuing USD indexed Class A preference shares and USD Class B preference shares that mature in November 2027 at 8.50 per cent. Eppley’s 7.50 per cent preference share matures in November 2024 at a maturity price of $6 per share or a face value of $500 million.

Eppley’s stock price rose eight per cent on Monday to $40.37 which leaves it with a market capitalisation of $7.77 billion with it being up seven per cent year-to-date. Eppley paid a $225.19 million or $1.17 dividend on March 28 to its shareholders.

“Eppley is a pioneer in private market investing in the Caribbean and one of the most respected investment firms in our region known for the calibre of its team, its financial performance, and its integrity. I plan to lead Eppley — guided by its founding principles — for the benefit of our team, our clients, and our shareholders,” Donaldson closed.