Surprise!  Surprise!  Surprise! 

                ----Giffin Back at Balboa Capital

It was a real big surprise to President Patrick Byrne, co-founder of Balboa Capital, one of the largest privately held lessors in the world,  when Shawn Giffin showed up at work yesterday morning.

It came in the form of an e-mail memo that was also sent to all the department managers:

“Good morning!
 
”I am pleased to announce my return to Balboa Capital
full time and permanently as of today (2/23).
Although I enjoyed my leave and the opportunities it
presented me, I am fired up to come back and work with
each of you to accomplish your goals and those of the
organization.
 
”Your chosen theme for the year of ‘Old School'
represents perfectly my mindset upon return.  In
getting back to basics, we recognize that our people
are our greatest competitive advantage.  I look
forward to working constructively with each of you to
make certain that philosophy is well integrated into
our strategic decisions. 

”I appreciate each and every one of you - for your
devotion to this company, your professional skills,
your integrity, and your really cool hair.  Your work
ethic and commitment to excellence are the qualities
which make Balboa Capital a special company.  For my
part, I am refreshed, invigorated, and ready to win
with you in 2004 and beyond. 

”I will be making the rounds the next few days to catch
up on things, so I look forward to speaking with you.
If you joined the company during my leave, please
swing by so I can introduce myself.   

”Thank you for your support.  I am extremely optimistic
about what we will accomplish together.”

Leasing News had heard this rumor last week that Shawn Giffin would be returning.  We then asked Patrick Byrne if there was any truth to what we had been hearing.

“Frankly, I don't know what Shawn is doing but he is still an owner of the company and if he wants to come back he can. I do know that everyone at Balboa is focused and committed to creating a great leasing company.”

Byrne had taken a two year sabbatical and came back to the helm

in late September of last year.  It was then Giffin turn to take

some time off, they both said.

Since that date, Byrne was back in the swing of things, increasing originations, creating a more sales friendly environment, improving credit and funding processes using Six Sigma, cleaning house, increasing customer service, finding fraud from vendors and salesmen, starting a broker division, the first time in 15 year history, hiring Curt Lynse, formerly with GE-Colonial Pacific, working on a national

vendor program division, and getting the company moving

in a very competitive manner.

“I'm thrilled to be back, “ Shawn Giffin told Leasing News. “My head

is clear.  I'm invigorated. This is a great company.”

Asked about his ability to get along with the other major share holder,

he said, ‘  Pat has a unique set of skills, as I do.  I think we are

very complimentary working together. The point is I am fired up

and am really glad to be back at work.  I love it! “

Asked about what his title would be, he said, “Titles aren't important

to Pat or I. “

Here is the article on the return of Patrick Byrne to the helm of

Balboa Capital.

September 25,2003

Byrne is Back at the Helm of Balboa Capital 

After celebrating 15 years with Balboa Capital of Irvine, California, a company he co-founded with Patrick Byrne, Shawn Giffin has decided to take a reduced role in the management of the daily operations.

" I love the company and am extremely proud of our employees, " he said.

"  I believe it's the right time for other leadership to assert itself.

That's all there is to it.  If I am needed, I am prepared to jump back in.  My biggest strength, though, is hiring people a whole lot smarter than me.  We have the right leadership team intact to grow the company and provide our

customers an outstanding experience."

It should be noted that Patrick Bryne took time off to obtain an MBA and

pursue other interest in 2000.  He has been back in the company full

time since the first of the year."

1993-Balboa Capital Corporation ,VP Finance Shawn Giffin, CLP (left) congratulates President Patrick E. Byrne, CLP. The Western Association of Equipment Leasing member firm was recently  ranked #67 overall on the Inc. 500 list.
WAEL Newsline

“The Balboa Capital story represents the true American dream of turning an entrepreneurial vision into reality. Formed in 1988 by two co-founders, Patrick Byrne and Shawn Giffin, the company has grown rapidly to become a nationwide leader in providing specialty commercial financial products to its customers. Today Balboa Capital has 7 offices across the country: Irvine, Los Angeles, San Francisco, Phoenix, Denver, Nashville and New York. Twice "Inc. Magazine" has recognized the company as one of the 500 fastest growing privately-held companies in the country. In 1997, Balboa Capital was honored by Ernst & Young, USA Today and Inc. Magazine as the Orange County Entrepreneur of the Year.

"Our entire team is committed to providing you the expertise you need, and personal service you deserve. I am proud of my fellow employees and the company we have built together."

- Shawn Giffin, President

"Your success is our success. By working together, we create an outcome which is ideal for everyone."

- Patrick Byrne

      http://www.balboacapital.com/corporate/history.html

Reportedly the company at one time was doing $100 million a year in leases, securitizing them; perhaps the largest privately held company today.  El Camino Resources in Southern California, who sold to GATX, and ATEL Capital, founded by AJ Batt and sold 75% to its president  Dean Cash in April, 2001, who  were the largest in this field.  ATEL in 2001 reportedly excited the small ticket field, leaving Balboa Capital the largest.  It is reported their concept of obtaining funds will be changing under the direction of Patrick Byrne, who confirmed the major change in management for leasing news:

“Aloha Kit,

“I noticed in the headlines of your newsletter today that you would be

breaking a "big" story on my "return" to Balboa; therefore, I thought that

you and your readers should have the facts.

“I have actually been back at Balboa on a daily basis since the beginning of

the year focusing on the Marketing and Operations side of the business.

Prior to the beginning of the year, I took a sabbatical from Balboa for a

little over two years.  While I remained active on the Balboa's board as

Chairman during my sabbatical, I got involved in some other areas.  I

consulted and invested in some early stage companies; I started a real

estate company; I invested, and then divested, ownership in some bars and

restaurants; I completed a joint MBA degree from Columbia and The London

Business School; I married a beautiful woman, and we now have incredible

baby boy.  I feel my time away from the day-to-day activities of Balboa

allowed me to gain a better perspective on Balboa and made me a more

valuable contributor.  I love being back at Balboa and connecting and

re-connecting with the great group of people that work here.

“Now my partner, Shawn Giffin, has chosen to take a sabbatical from the

day-to-day activities of Balboa.  Shawn continues to be an owner of the

company, a board member, and he will continue to work on various strategic

projects for the company.

“I can certainly empathize with his decision.  He has been working at Balboa

for almost fifteen years and he has been heading the company for the last

three years.  The last three years in the leasing business have not been

easy.    The good news is that Balboa is a survivor; the bad news is that we

have not grown as fast as we would have liked.  Many of your readers may

have encountered a similar situation.  Shawn has earned and deserves a

break.

“Balboa continues to be a very vibrant company with a lot of great momentum thanks to a very talented group of people who are dedicated to winning.

This has not, and will not, change.

“Kit, you provide an invaluable service to the Equipment Leasing Industry.  I

hope all is well.

“Kind regards,

Pat

Patrick Byrne pateb@balboacapital.com

There were rumors floating around recently as Patrick Byrne personally visited each of the branches and spoke directly with employees, letting them know about the changes, answering any questions they might have, and letting the employees know there are only two members of the board of directors, two owners, and both were remaining with the company, but Shawn Giffin was going on sabbatical.

Balboa Capital has graduated many to start their own leasing companies.  Most notably are the partnership of Mark McQuitty and Jim Raeder who sold their company to Sierra Cities to go public. It was Balboa Capital's plan to also go public, but after seeing what had happened to others, at about the same time, changed their mind to keep the company private.  History has proven their decision was a smart move.

The mission today:

“WE HAVE A PASSION FOR CUSTOMER SERVICE

WE ARE A TEAM

WE EMBRACE RESPONSIBILITY

WE STRIVE FOR CONTINUED SELF IMPROVEMENT

WE REQUIRE CONSTANT INNOVATION

WE DEMAND INTEGRITY”               

http://www.balboacapital.com/corporate/mission.html