ATLANTA Doug Carter, former head of the public finance group at Birmingham, Ala.-based, Sterne, Agee & Leach Inc., has started his own financial advisory firm Charlotte, N.C.-based DEC Associates. Since the launch of the start-up in December, Carter has carved out a considerable amount of business for some very strong credits, including the cities of Charlotte, Raleigh, and Winston-Salem.The North Carolina Local Government Commission usually acts as financial adviser for most deals in the state, eliminating the need for issuers to hire their own financial adviser, observers said. DEC Associates, however, is looking to offer more services than the LGC a state agency, which approves and works with issuers to bring their deals to market.North Carolina has not been a very large state for FAs. Thats because of the role the LGC has historically played, said David Fischer, managing director at BB&T Capital Markets in North Carolina. They act as a de facto FA on [many] competitive deals, he said. On negotiated deals, underwriters often times take on that role, he added.Many broker-dealers operate in the state but focus primarily on underwriting business. Financial advisory firms active in the state include Public Financial Management, Prager Sealey & Co., First Southwest Co., and Sterne Agee. With Carters departure from Sterne and his tenure in the market, his new firm has quickly picked up business.Greg Gaskins, finance director for Charlotte, said yesterday that the LGC still performs an excellent role in its oversight of deals, but it is currently swamped with issuers.Considering the volume of business and the complexity of deals now, you dont have the luxury you used to when dealing with as much debt as Charlotte, he said. Its a different age from when I just started in the business. Its a heck of a lot more complex. Gaskins started working with Carter at the LGC during the 1970s, he said.To that end, triple-A rated Charlotte was one of DEC Associates first clients. The firm recently completed a $48 million general obligation bond forward refunding for the city. DEC is also assisting the city on one of its largest debt-funded projects in its history, the South Corridor Light Rail Project. No exact amount of debt has been set yet, however.Carters firm also participated on a rare water and sewer revenue bond deal for Winston-Salem. The $87 million new and refunding deal sold in last month.When Raleigh started putting together a $215 million certificate of participation package, its officials chose Carter as the financial adviser. The debt sold last month and proceeds went toward a convention center and hotel project. Raleigh, also rated triple-A, is in the midst of an aggressive effort to revitalize its downtown area.Carter has spent 30 years working in the public finance business, including management positions at some of the countrys most renowned firms. While his most recent top position at Sterne Agee was rewarding, Carter said his desire to work more closely with clients drove his ambition to start DEC.I had the distinct pleasure of working over the years at a number of firms, Carter said. But I find the greatest pleasure and reward is from the time Ive spent in client work.The other firms at which he was also head of public finance include the former J.C. Bradford, First Union, Alex Brown & Sons, and Morgan Keegan & Co., Carter said. And while he honed his management skills at those firms, Carter got his start in the industry through government positions, so starting a financial advisory firm to serve public finance clients was a natural fit, he noted.Carter recalls starting out under the late Harlan Boyles in 1972 who was then the secretary of the North Carolina LGC. He eventually went to work for Charlotte as assistant finance director in 1977.Having a government background, partly from working with the LGC and as director of finance of a high-rated city like Charlotte, I got many of the skills I needed to move into a financial advisory position, Carter said.He admitted that while hes interested in underwriting, it isnt as big a draw for him as financial advisory work.Underwriting oftentimes tends to be more transactional-based, Carter said. Financial advisers work with issuers on everything from their financial needs all the way to debt issuances. So I want to provide a service that is not transactional-based. I want to be an extension of my clients staff.Carter says his experience not only helped him land his first round of clients, but it should help him to serve issuers throughout North Carolina and even South Carolina. He prides himself on being extremely knowledgeable of some of the unique needs such as education and solid waste that municipalities in these states face. He believes his experience in crafting deals to meet those needs puts him at an advantage.South Carolina and North Carolina provide a unique place to do business because of the many counties that border metro areas, Carter said.He noted that many of these communities have grown from being rural areas to being bedroom communities to the larger cities. Meeting the needs that have accompanied that growth, especially through the wide array of vehicles available through the capital markets, is a whole new ball game for many of the governments in those communities, he said. As a result, they are increasingly turning to financial advisers for help.Carter says that although he welcomes the business, his goal is not to grow into a huge conglomerate. Now in his 50s, Carter said he would eventually like to see his practice cover five to six states in the South. He is also considering extending his staff, which consists of just two others administrator Allie Donovan and vice president Jeremy Carter, his son.I want to grow at a pace that will allow us to continue to do a very good job, Carter said.
