Advisory Case Studies
Hedge Fund Clients
Cypress provided investors with potential scenarios and accurately predicted key changes to a Fed rulemaking. Several investment manager clients were interested in how the Federal Reserve would regulate debit card interchange fees and routing rules under the Durbin amendment of Dodd-Frank. The Advisory team guided clients first through the detailed, behind-the scenes legislative machinations leading up to Dodd-Frank, then through the Fed’s initially tough proposal, the intense, months-long lobbying campaign, and the Fed’s substantial changes in the final rule. Throughout the process, Cypress educated investors on esoteric payment models and Fed process, and assigned probabilities to several potential scenarios, allowing Cypress clients to accurately predict ultimate outcomes for the payment networks and card issuers.
Private Equity Client
Cypress priced the political risk of a proposed private equity investment. The deal proposed buying a company and splitting it into two distinct entities. One would be a consumer finance company regulated by the Consumer Financial Protection Bureau (CFPB), a new and uncharted agency that posed considerable political risk and uncertainty. Working directly with the deal team to identify crucial regulatory questions impacting the company’s profit and loss, Cypress leveraged its knowledge of CFPB regulations and motives, as well as deep relationships within the Bureau’s senior leadership and broader policymaking community, to quantify the likelihood of specific regulatory outcomes, allowing the PE firm to proceed through the deal with greater confidence.
Cypress developed a strategic plan for a Fortune 100 to be more proactive about its public policy goals. The client had found itself at a crossroads, having spent substantially in Washington with questionable results. Cypress initiated a comprehensive review of the firm’s public policy threats and opportunities, developed a strategic plan to ensure that policy goals matched corporate profit-drivers that took into account the changing political and market landscapes, and helped the client pivot from a defensive to an offensive posture. Cypress continues to work with the client’s Washington office to achieve its public policy goals, and to help it serve its Risk and Executive committees internally.
Trade Association Client
Cypress Advisory was retained by a financial services trade association under new leadership. The incoming management team asked Cypress Advisory to identify key strengths and weaknesses of the organization, as well as present a strategy for improving its member service, advocacy, and communications in Washington, DC. The firm spent four months analyzing the association’s business model, interviewing personnel and researching the staffing, operations, and budgets of similar organizations. Cypress Advisory designed a three-year strategy for the client to present to their Board. That plan is currently guiding the managerial decisions shaping the association and its membership.