Andrew M. Murstein
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|Andrew M. Murstein|
Murstein in 2007
|Born||Andrew Mead Murstein
June 29, 1964
Roslyn, New York
|Alma mater||Tufts University, New York University, M.B.A.|
|Occupation||President and Board Member, Medallion Financial Corp.|
Andrew Mead Murstein (born June 29, 1964) is founder, president, board member and largest shareholder of Medallion Financial Corp., an investment company publicly traded on the Nasdaq stock exchange under the symbol MFIN (changed from TAXI on May 11, 2016). MFIN and its predecessor companies have invested over $7,000,000,000 in various companies throughout the U.S. MFIN has had an average annual return of over 30% over the last year. He received a B.A. in economics, cum laude, from Tufts University and an M.B.A. in finance from New York University. He was named among Crain’s New York Business’ “40 Under 40”, and has been featured in numerous business publications. In 2013 he was appointed to the Board of the Javits Center by Governor Andrew Cuomo.
Early life and career
Andrew Mead Murstein was born in Roslyn, New York to Alvin and Aileen Murstein. His grandfather of German descent, Leon Murstein, came to the United States from Argentina, became a New York cabdriver and purchased one of the first New York taxi medallions, issued in 1937, for $10. The family went on to purchase several hundred medallions for prices as little as $10 each—medallions peaked at over $1,300,000 each and currently sell for around $500,000 each.
In 1979, the Mursteins founded a family-owned company called Medallion Funding Corp. to build a taxi medallion lending business. Medallion Funding earned returns on investment over 20 percent per year. The price of NY City medallions peaked in 2013, as the emergence of ride-hailing companies caused the first significant and sustained decline in medallion values. In order to navigate this challenge, Murstein reduced medallion lending, expanded consumer lending and restructured existing medallion loans. To better communicate the more diversified lending strategy, a stock symbol change was made from "TAXI" to "MFIN" on May 10, 2016  A decision was also made to eliminate the dividend and convert to a C corp from a Business Development Company due to tax and capital considerations. After a steep decline, shares of MFIN began to rebound in the second half of 2017, and Murstein declared "I think the prices for medallions has bottomed out" in October 2017. As recently as December 12, 2017, 9% senior notes issued by Medallion Financial traded for over 100% of par value, which is a significant recovery from distressed levels reached earlier in 2017, and an indication of improved investor confidence.
Later life and career
Andrew Murstein, after completing his studies at Tufts University and New York University, spent several years on Wall Street, including a stop at Salomon Brothers, where he learned the power of equity in funding a business. He joined Medallion Funding full-time in 1990 and eventually took the company public.
In 1996, Murstein successfully launched Medallion Financial Corp., established to be the parent company of Medallion Funding, as a public company trading on the Nasdaq under the symbol MFIN. The company has financed the purchase of thousands more in Newark, Cambridge, Philadelphia, Chicago, Boston and New York City, is an established industry leader. But taxi loans are only a part of the story. The company also established or bought successful businesses that lend to a variety of small businesses such as dry cleaners, convenience stores, manufacturers, distributors, and later public companies.
In 1994, Murstein invested $1-million to create a subsidiary which sold advertising on the tops of taxis. The subsidiary, eventually named Medallion Taxi Media, was enhanced in 1996 with the acquisition of See Level Advertising. Murstein sold Medallion Taxi Media to Clear Channel yielding $35 million in 2004. About this time Medallion Financial Corp. set up its own bank, Medallion Bank, to fund many of the company’s endeavors. On February 27, 2009, Medallion accepted an $11.8M investment from the U.S. Treasury, a security which was repaid on July 21, 2011.
In 2008, Murstein with former baseball star Hank Aaron and former New York Governor Mario Cuomo, both Medallion Financial board members, and former football star and Congressman Jack Kemp, now deceased, formed a special-purpose acquisition company (SPAC) which raised $230-million to buy a professional sports team. The SPAC reportedly bid for the Chicago Cubs and other sports properties but ended up not making a purchase because none of the properties the company evaluated had the right mix of profit potential and risk avoidance. Later that same year Murstein organized and filed publicly a SPAC focused on the security industry and assembled a board of directors that included, former FBI director Louis Freeh, and initial head of Homeland Security and former Pennsylvania Governor Tom Ridge.
In 2012, along with partners Richard Mack, and NFL legend, Jim Brown, Murstein acquired the Long Island Lizards of Major League Lacrosse, and renamed the team the New York Lizards. The team plays at Hofstra University on Long Island, and won the MLL championship for the third time in 2015.
In 2017, Murstein and his partner, NASCAR legend Richard Petty, announced the hiring of their new driver for the famous 43 car, Darrell “Bubba” Wallace, Jr., who will become the first African-American driver in NASCAR’s Cup Series in over 40 years.
- Medallion Financial Corp. Reports 2016, First Quarter Results And Announces Ticker Symbol Changes To MFIN and MFINL, Medallion Financial Corp. (Website), May 10, 2016
- Andrew Murstein Salary and Stock Options for Medallion Financial Corporation. Salary.com, May 23, 2016 (http://www1.salary.com/Andrew-M-Murstein-Salary-Bonus-Stock-Options-for-MEDALLION-FINANCIAL-CORP.html)
- "Stock Dividends". longrundata.com. Retrieved 2017-03-15.
- “Andrew Murstein, President” Medallion Financial Corp. website, retrieved May 23, 2016 www.medallion.com/about_senior_mgmt_murstein.htm
- Andrew Murstein et al., The Business of Funding, New York, Aspatore Inc., 2006, p.37
- “Andrew Murstein, 29,” by Peter Grant “40 under 40,” Crain’s New York Business, Jan. 31, 1994/Feb. 6, 1994, p. 11
- Medallion Financial Corp. Retrieved Oct. 7, 2010 (Website) (www.medallion.com)
- “NYC taxi medallions worth hailing,” by Taylor McGraw, USA Today, Aug. 6, 2009, p. 3B
- “So you want to go public,” by Stan Luxenberg, Family Business magazine, Winter, 2003 Issue (Magazine)
- “Hailing New Customers,” by Tania Padgett, Newsday, Nov. 3, 2003, p.A31 (Magazine)
- “A Lender Hopes to Profit From the New Taxi Math,” by Tim Gray, The New York Times, Jan. 25, 2004 (https://www.nytimes.com/2004/01/25/business/investing-a-lender-hopes-to-profit-from-the-new-taxi-math.html?emc=rss&pagewanted=all)
- “Medallion Financial Corp. Reports 2009 Fourth Quarter and Full Year Results,” press release issued March 5, 2010, posted on Business Wire (www.businesswire.com/news/home/20100305005660/en), Yahoo, Dow Jones, businessweek.com, marketwatch.com, and Medallion’s website
- “Medallion Financial Corp. Reports 2010 Second Quarter and Full Year Results,” press release issued August 4, 2010, posted on Business Wire (http://www.businesswire.com/news/home/20100804005928/en/Medallion-Financial-Corp .-Reports-2010-Quarter-Results), Yahoo, Dow Jones, Reuters, businessweek.com, marketwatch.com, and Medallion’s website
- “Industry Information,” New York City Taxi & Limousine Commission website (http://www.nyc.gov/html/tlc/html/misc/avg_med_price.shtml), retrieved Oct. 7, 2010
- Time to Hail Medallion Financial Shares, Barron’s, September 18, 2015 (http://www.barrons.com/articles/time-to-hail-medallion-financial-shares-1442634110)
- "Form 10-K". www.sec.gov. Retrieved 2017-03-15.
- “Andrew Murstein, 29,” by Peter Grant, “40 under 40,” Crain’s New YorkBusiness, Jan. 31, 1994/Feb. 6, 1994, p. 11 (http://mycrains.crainsnewyork.com/40under40/profiles/1994/andrew-murstein)
- "Medallion Financial Corp. 9.000% Notes due 2021 (MFINL)". NASDAQ.com. Retrieved 2017-03-15.
- Medallion Financial Corp. website (www.medallion.com), retrieved May 26, 2016
- “New York cabs try to become ideal vehicle for advertisers,” by Andrew Edgecliffe-Johnson, Financial Times, April 8, 1999
- Medallion Financial Corp. annual report, 2009, p. 4, and 2004 and 2005, both p. 2 (http://www.medallionfinancial.com/pdf/annual_reports/Medallion_AR_2009.pdf)
- “The Media Business: Advertising – Addenda; Two Developments in Ads on Taxicabs,” by Stuart Elliott, The New York Times, July 31, 1996 (https://www.nytimes.com/1996/07/31/business/the-media-business-advertising-addenda- two-developments-in-ads-on-taxicabs.html)
- “You Bankin’ With Me?” by David Dent, Business 2.0 magazine, April 2005, p. 62
- Rob Pannell’s Four Goals Help Lizards Rally To Claim MLL Championship, Newsday, August 9, 2015. (http://www.newsday.com/sports/lacrosse/rob-pannell-s-four-goals-help-lizards-rally-to-c laim-mll-championship-1.10721898)
- “And The NASCAR Wild-Card river To Watch In 2018 Will Be…..” by Dave Caldwell, Forbes, Dec. 16, 2017
- “Richard Petty Motorsports switches to Chevrolet, Aligns with Richard Childress Racing,” by Mike Hembree, USA Today, Dec. 7, 2017 (https://www.usatoday.com/story/sports/nascar/2017/12/07/richard-petty-motorsports-chevrolet-richard-childress-racing-alliance/933159001/)