Waukesha-based Darrow Automotive Group, which owns dealerships in North Carolina, Georgia and Illinois, recently agreed to acquire six dealerships in the Augusta, Ga., market. Financial terms of the deal, set to close in September, were not disclosed. When the transaction closes, Darrow Automotive Group will own BMW, Infiniti, Jaguar, Land Rover and Hyundai dealerships in the Augusta market, along with a used car dealership, said Russ Darrow III, president and chief executive officer of Darrow Automotive Group.

Rick Taylor, co-owner of the Augusta dealerships, will become a Darrow Automotive Group employee after the purchase closes, helping to run the BMW dealership, Darrow said. The Waukesha-based company does not currently own any dealerships in Wisconsin. Darrow divested his interest in his family's auto dealerships in October 2006, when he started Darrow Automotive Group. "We want to grow in the southeast part of the U.S. with import lines in growth markets," Darrow said.

Georgia and North Carolina are both attractive markets because of the growth in those regions, Darrow said. In July, Darrow will close on two import dealerships in the Charlotte area, he said. "We've come to like that market (the Southeast) a lot," he said. "The government is adding billions to the military base there, an energy plant there is adding 15,000 jobs. The university is doubling the size of its campus. The local economy is very good. There's dynamic growth. That's why we're going to those markets." However, the company isn't likely to move its corporate headquarters from Waukesha, Darrow said. And while his company has not yet acquired a Wisconsin dealership, Darrow said it continues to look for the right dealer to buy. "I enjoyed being in the business (here) for more than 20 years," he said. "If the right opportunity - with the right lines and in the right market, I will be there." For more, visit www.darrowusa.com.

Johnson Insurance Services, the insurance branch of Johnson Financial Group, will open a new regional service center near Highway 20 and Interstate 94 in Racine in July. Johnson Insurance already has four regional Wisconsin service centers in Green Bay, Madison, Eau Claire and Janesville. The regional service centers offer commercial, casualty and property, and employee benefits services.

The new 10,500-square-foot facility will house 50 employees and also will have a large training and development center for the company's associates, said Chris Lie, president and CEO. The new location will serve as a processing and service center for Johnson Insurance Services' commercial property and casualty lines and employee benefits staff. "This location gives us access to the highway - we want our agents to be able to find one central spot to meet with their service reps," Lie said. "And our service people occasionally meet with clients."

Five to six of the 50 employees who will work in the new Racine service center will be new hires, Lie said. The remaining staff will be brought in from the company's other centers in downtown Milwaukee and downtown Racine.

Fiserv's new software identifies possible foreclosure candidates
Brookfield-based Fiserv Inc. recently released preemptive mortgage default resources that enable financial institutions to proactively identify and contact troubled borrowers with customized repayment solutions to try to keep them out of foreclosure. The new services include Predictive Risk Index Score Modeling (PRISM) and Home Retention Solutions. According to the Mortgage Bankers Association (MBA), the rate of foreclosure starts and the percent of loans in the process of foreclosure are the highest recorded since 1979. The number of homes in the foreclosure process or delinquent on payments is 8.82 percent (6.35 percent past due but not in foreclosure, plus 2.47 percent in foreclosure).

When faced with mortgage delinquency, due to high debt-to-income ratios, minimum payment resets on adjustable rate mortgages, rising living expenses or job losses, many borrowers fail to contact their financial institutions. Borrowers often avoid discussions with their mortgage lenders until after they have missed several payments, a situation that increases the possibility of foreclosure. Fiserv PRISM and Home Retention Solutions focus on helping financial institutions forecast delinquencies before defaults occur and provide expanded customer care to proactively offer refinancing and negotiate workable resolutions.

"The ability to identify, monitor and create solutions for at-risk borrowers is critically important to financial institutions," said James Smith, executive vice president of portfolio services for Fiserv. "It is not economically beneficial to lenders or borrowers to have mortgage loans enter into foreclosure. By using Fiserv PRISM and Home Retention Solutions, financial institutions are better positioned to assess portfolio risk, cure delinquencies and serve their borrowers. We believe that in this difficult market, financial institutions that invest carefully in technology such as PRISM and Home Retention Solutions will become more efficient and responsive to customer needs, with the potential to excel as market leaders when the current downturn starts to improve."

The surge in delinquencies strains the resources of financial institutions that are already experiencing lower production volumes and tighter operating margins. By outsourcing loan analysis and customer contact to Fiserv, financial institutions can meet the needs of challenged borrowers without having to purchase and deploy analytic software or employ mortgage default experts, Smith said.

The PRISM analysis can provide a glimpse into the extent of the damage the credit crisis is likely to inflict across a lender's mortgage loan portfolio. If property ownership is transferred to the financial institution, Home Management Solutions maintains the property and manages the sale of the asset. Fiserv's real-time, interactive dashboard keeps lenders aware of loan workouts and all loss mitigation activities.

M&I Bank to provide flooding financial assistance
M&I Bank will provide several forms of financial assistance to people affected by the record rainfall and flooding in Wisconsin, including up to two deferred payments on installment loans such as auto loans, home improvement loans, leases, and credit cards. For both new and existing customers, preferred pricing will be available on various loan products for those who qualify. All closing costs will be waived.

"So many families have financial concerns as a result of these oppressive flooding conditions," said Tom O’Neill, senior vice president, Marshall & Ilsley Corp., the Milwaukee-based parent company of M&I Bank. "Our goal is to do what we can to help them get through this difficult time." For payment arrangements on existing loans, call M&I Bank at 1-888-600-9327, and ask for the Flood Relief Program. For new loan inquiries, call M&I Direct at 1-800-642-2657.

State attracting more early-stage business investments
For years, Wisconsin has struggled to attract angel investors and venture capital, but a new report indicates the situation is improving. Private dollars invested in Wisconsin start-up companies operating in high-growth sectors such as biotechnology grew substantially in 2007, according to the report released last week.

The survey, conducted by NorthStar Economics and the Wisconsin Angel Network, showed $146.9 million in early-stage investments in the state in 2007, up from $102.9 million in 2006. That's a 43 percent increase in dollars invested by individual angel investors, angel networks, early-stage funds and others interested in Wisconsin start-up deals. Venture capital investments in Wisconsin, later-stage investments made after early-stage companies begin to grow, also increased in 2007 to $90 million from $73 million in 2006, the survey showed.

In addition to the early-stage and venture capital investments, Wisconsin also showed year-over-year gains in initial public offerings (four offerings raised $343 million) and federal small business innovation research grants ($33.7 million). "Wisconsin's early-stage capital market is growing at a rate that exceeds the U.S. average, which speaks to the tremendous strides being made by Wisconsin start-ups and those who help those companies grow," said Mark Bugher, chairman of the Wisconsin Tech Council and director of University Research Park in Madison.

Prominent Milwaukee business leaders to advise Zilber initiative
The Zilber Family Foundation recently announced that Dennis Kuester, the chairman of Milwaukee-based Marshall & Ilsley Corp., will lead the advisory board for the Zilber Neighborhood Initiative. The board, which includes other prominent civic leaders, will provide oversight and monitor the progress of Joseph Zilber’s $50 million philanthropic effort to improve Milwaukee communities.

"Our mission, stated simply, will be to insure that the contribution is being prudently spent and accomplishing the positive outcomes that we all envision," said Kuester.  

The other members of the advisory board are:

• Daniel Bader, president of the Helen Bader Foundation, Inc.
• Michael Bolger, president and CEO of the Medical College of Wisconsin.
• John Daniels, Jr., chairman of Quarles & Brady LLP.
• Ricardo Diaz, executive director of United Community Center.
• James Janz, executive vice president of administration for Zilber Ltd.
• Gale Klappa, chairman, president and CEO of Wisconsin Energy Corp.
• Sheldon Lubar, founder and chairman of Lubar & Co.
• Deloris Sims, president and CEO of Legacy Bancorp Inc.
• Edward Zore, CEO Northwestern Mutual Life Insurance Co.

Among other responsibilities, the members of the Advisory Board will approve the strategic plan for the Zilber Neighborhood Initiative, make sure that its resources are leveraged, and assess the impact of its activities and investments.  "The Initiative is fortunate to have someone of Dennis's stature and vision at the helm," Zilber said. "Dennis will be joined by some of Milwaukee's most thoughtful and committed leaders, people who recognize that the city has an opportunity to engineer a new future and rekindle hope for all its residents."

The Zilber Family Foundation recently retained Susan Lloyd, Ph.D., to work with the Advisory Board and with Milwaukee’s philanthropic and nonprofit communities over the summer months to develop a strategic plan for the Initiative. The plan, to be available by October, is expected to target specific neighborhoods and describe activities to strengthen local organizations, support community plans, and address issues that affect residents and Milwaukee's future prospects. The foundation's board of directors will consider the first set of grants for the Zilber Neighborhood Initiative this fall.

Joseph Zilber and the Zilber Family Foundation have committed over $100 million to nonprofit organizations and institutions for the betterment of Milwaukee in the last two years. In addition to the $50 million Zilber Neighborhood Initiative, the Zilber Family Foundation awarded $30 million to Marquette University to fund scholarship and other programs and $10 million to the University at Wisconsin – Milwaukee to establish a School of Public Health, which was approved recently by the UW Regents.

Fiserv honored as 2008 Microsoft Partner of the Year
Brookfield-based Fiserv Inc., has won the 2008 Microsoft Partner of the Year Global Independent Software Vendors (ISV) Line of Business Special Recognition award. The company was chosen from an international field of top Microsoft partners as "delivering market-leading customer solutions" built on Microsoft technology.

"We are honored to have been chosen by Microsoft as the first financial services partner to receive this global award," said Jeffery Yabuki, Fiserv president and chief executive officer. "It is our mission to deliver differentiated technology solutions which help our clients achieve best-in-class results. We will continue to find innovative ways to extend our partnership with Microsoft to deliver value to Fiserv's clients today, and into the future."

Awards were presented in a number of categories, with winners chosen from a pool of more than 2,000 entrants worldwide. Fiserv was recognized for "superior technology and innovation" in the Global ISV Line of Business.

"In the last year we have seen Fiserv focus on integration of its products through Fiserv 2.0 and look for new ways to serve its clients. Their commitment to Microsoft technology provides a powerful accelerator for success in the financial services industry," said David Vander, managing director, Worldwide Financial Services, Microsoft Corporation. "Fiserv's comprehensive solution suite is tailored to meet the extensive requirements of the financial services industry by consistently delivering innovative solutions leveraging Microsoft technology."

Does America Need a Fiscal Wakeup Call? Blueprint Briefing, June 30, 11:30 a.m.-1:30 p.m., Discovery World, 500 N. Harbor Drive, Milwaukee; presented by Metropolitan Milwaukee Area of Commerce; moderated by Mike Gousha, with panelists Bob Bixby - Executive Director of the Concord Coalition, David Walker - Former Comptroller General of the U.S. and former head of the Government Accounting Office, Alice Rivlin - Former Director of the Congressional Budget Office, Director of White House Budget Office under President Clinton, Stuart Butler - Heritage Foundation, and Congressman Paul Ryan; $10 MMAC members, $25 for non-members; visit www.mmac.org/calendar.

Turnaround Management Association Summerfest 2008 Celebration, June 30, 5-8 p.m.; $35 members and spouses, $50 nonmembers; visit www.chicago.turnaround.org or call 815-469-2935.

Financial Executives International Milwaukee Chapter meets on the second Tuesdays of the month at 5:30 p.m., University Club, 924 E. Wells St., Milwaukee. Call Mary at (414) 226-6975.