Niche Player

Niche Player

The past year hasn't been great for many investment banks, but Skyway Capital Partners in Tampa has been steadily growing as a middle-market firm.

Scott Feuer began Skyway Capital Partners, a Tampa investment-banking firm, in October 2002, spinning it out of Communications Equity Associates at the depths of the last economic downturn.

Feuer's vision was to replicate the predecessor firm, but as a more boutique, middle-market investment banking and merchant banking firm. He has done that boldly like its landmark namesake - the Sunshine Skyway Bridge connecting St. Petersburg and Bradenton.

Since 2004, Skyway, with only a handful of people, has done $1.1 billion in transaction volume.

"We're fairly proud of that," Feuer says.

And he has done it at a time when investment banks are hurting and don't enjoy the best reputation.

"Contrary to conventional wisdom, were not the evil empire," says Brian Crino, the firm's co-founder and president.

Skyway offers investment banking, private equity, debt financing and financial advisory services to companies with $25 million in enterprise value to above $500 million, although $500 million is in big investment bank territory.

"We have worked above $500 million," says Feuer, 41, the chief executive officer. "Given that most of that business has disappeared, hopefully we're here to do the fill-in."

Skyway's areas of focus, where it considers itself a subject matter expert, are health care, media, technology and real estate. Earlier this month, it added alternative energy and federal contracting. It sometimes works in other industries. It has six investment banking employees.

Prior to Skyway and Communications Equity, Feuer started as an investment banker and briefly moved to the operational side in strategic planning with the Walt Disney Co. in Orlando. Crino was chief financial officer and vice president at Instep Software and worked as a corporate finance attorney in Chicago.

While in business school, Crino answered a want ad on the J.L. Kellogg Graduate School of Management Web site from Feuer, who lured him from icy Chicago to sunny Tampa in 1998 to work at Communications Equity.

Business these days is more difficult, because of the economy and credit crunch, Crino admits. Competitors are cutting staff. Meanwhile, Skyway is growing, yet often working twice as hard for half the money.

Besides the investment bank work, the other part of its business is merchant banking. It has acquired a controlling interest in six privately held businesses in media, real estate and health care, with a total of about 1,500 employees.

Skyway's long-term vision is to continue to build through acquisitions and be strong on its investment banking side.

Its primary distinction is that it is relationship-oriented and is nimble, focusing on client needs, not on its set system. It doesn't do a lot of outbound marketing. Its small size allows senior staff to do hands-on work with all clients.

One of its biggest challenges has been attracting talent. Because of its business, it prefers Ivy league-educated, experienced professionals (Feuer is a Penn alum.). Many of those are in mega cities, such as New York or Chicago. Not all of them embrace Tampa and want to move. Some have turned Skyway down.

"It has been a challenge," Crino says. "It's a perception issue when people from New York and Chicago are thinking about Tampa."

The good news is that the investment banking market is "critically under banked," Feuer says. That presents business opportunities.

The biggest CEO lesson for him has been learning how to segue from the transaction side of the business to day-to-day operations.

"I think this is part of the difference in going from a good to a great business," Feuer says.

- Dave Szymanski