David C. Farmer vs. Harmon - Witness Brad K. Heppner, Crossroads Group

David C. Farmer, Successor-Trustee vs. Harmon

(Formerly Woo vs. Harmon & Nicholson vs. Harmon)

U.S. District Court For the District of Hawaii

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DEFENDANT’S WITNESS

BRAD K. HEPPNER

Brad K. Heppner, chairman and chief executive officer of The Crossroads Group, has overseen the Company's expansion from $500 million of committed capital investments to over $2 billion since he led the acquisition of the Company in 1996. Following its founding in 1981, The Crossroads Group has acquired investments in over 240 strategic private equity partnerships and more than 5,300 portfolio companies across the U.S. and Europe making it among the largest and most profitable companies in the private equity asset management industry.

Early in his career, Heppner was associated with Goldman, Sachs & Co. as an investment analyst in New York and Dallas. Upon completing Goldman's analyst program and further training at a Dallas-based merchant bank, he joined the Chicago-based John D. and Catherine T. MacArthur Foundation in 1989 as director of investments with responsibilities for the Foundation's $3.5 billion diversified public and private equity portfolio.

Heppner initiated the Foundation's investment in several segments of the private market, including venture capital funds, buyout partnerships and distressed debt. In addition, he actively oversaw the foundation's investments in natural resources serving as a director, chief financial officer and eventually a shareholder of one of the foundation's affiliated oil and gas operating companies located in Dallas.

Subsequently in 1994, Heppner joined Boston-based Bain & Company, one of the largest and leading international strategy consulting firms where he was a senior consultant advising clients on strategies to improve the profitability and operations of their firms.

Brad Heppner has held advisory board positions with American Industrial Partners Capital Fund, L.P.; Foothill Partners, L.P.; North American Fund II, L.P.; Triad Venture Partners, L.P.; and Brantley Venture Partners. He has also served as a director of Orion Capital Holdings, L.P., and BDM Holdings, Inc., an investment joint venture of the Kamehameha Schools Bernice Pauahi Bishop Estate, Duke University and the MacArthur Foundation.

In addition to his responsibilities at The Crossroads Group, Heppner serves on the board of directors for the Greater Dallas Chamber of Commerce and is a past member of its executive committee and prior chairman of the Dallas Business Technology Council. He also serves as an adjunct professor for private equity in the MBA program at Texas Christian University.

Brad earned his master's degree from the J.L. Kellogg Graduate School of Management at Northwestern University. He is an honors magna cum laude graduate of Southern Methodist University, where he received a B.S. in economics, a B.A. in psychology and a B.B.A. in finance from the Edwin L. Cox School of Business. Brad is a member of Phi Beta Kappa and a life member of the Phi Beta Kappa Society. He was named Outstanding Young Alumni by SMU's Cox School of Business in 2001.

http://news.dallaschamber.org/e_article000079431.cfm

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From the Exhibit, “The Connecticut Connection”:

Charles M. Harmon, Jr. - Sometime in 1996, Hawaii’s wealthy charitable trust, Bishop Estate, loaned approximately $1 million to Charles Harmon, Jr., an investment banker and former general partner of Goldman, Sachs & Co.

The 08/12/96 issue of Pacific Business News reported that Bishop Estate had “quietly purchased the majority interest of a Connecticut specialized advisory business that manages almost $1 billion in assets.”...

Royal Hawaiian Shopping Center, Inc., a for-profit subsidiary of Bishop Estate, is a co-investor in the purchase of Bigler Investment Management, a Farmington, Conn., firm that manages fund-of-fund accounts....

The purchasing entity, called The Crossroads Group, is expected to take on a much more aggressive money-management outlook. . . . other investors in The Crossroads Group are parties that have had ‘long relationships’ with Royal Hawaiian...

Massachusetts equity analyst Steven P. Galante said his own research found Bishop Estate purchased about a 60 percent stake in The Crossroads Group. The management team and others own the remaining interest....

According to Galante . . . principals of The Crossroads Group are: Charles M. Harmon, Jr., an investment banker and former general partner at Goldman, Sachs & Co. in New York; Larry I. Landry, chief investment officer of John D. & Catherine T. MacArthur Foundation in Chicago; and Brad Heppner, a consultant at Bain & Co. in Dallas and former director of private investments at the MacArthur Foundation.

All have prior experience with Bishop Estate. In 1993, the MacArthur Foundation, along with Duke University’s endowment fund, backed the formation of a Boston merchant bank called Orion Capital Partners LP....

Harmon is familiar with Bishop Estate because the Hawaii trust owns 10 percent of Goldman Sachs....

www.kycbs.net/ConnecticutConnection.htm

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NEW DISCOVERY - 06/14/08: DAVID FARMER’S UNDISCLOSED RELATIONSHIPS WITH THE DIAMOND HEAD THEATRE, JAMES MacARTHUR, THE MacARTHUR FOUNDATION, GOLDMAN SACHS, ROBERT RUBIN, BILL CLINTON, HENRY PAULSON, THE NATURE CONSERVANCY, FAYE KURREN, HAUNANI APOLIONA, KAMEHAMEHA SCHOOLS, WALLY CHIN, HENRY PETERS, BISHOP MUSEUM, ADELE SMITH SIMMONS, BRAD HEPPNER, MARSH & McLENNAN, JAMES WRISTON, JUNE JONES, JOE MOORE, JAMES NICHOLSON, RON REWALD, ETC....:

www.jamesmacarthur.com/TwentiethCentury/TwentiethCentury.shtml

http://starbulletin.com/1999/04/14/news/story1.html

www.kycbs.net/Non-Profits.htm

www.kycbs.net/Bishop-Museum.htm

www.kycbs.net/ConnecticutConnection.htm

www.kycbs.net/MarshBirds.htm

www.kycbs.net/WCI.htm

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September 19, 2003

Lehman Brothers expands private equity business with acquisition of Crossroads Group

Source: AltAssets.

Global investment bank Lehman Brothers is to acquire the US fund of funds business Crossroads Group. The value of the transaction has not been disclosed but the acquisition will boost Lehman's global private equity franchise to $7bn in private equity assets under management.

‘This transaction has the potential to make Lehman Brothers a market leader in the fund of funds business and enhances The Crossroads Group's ability to build value for both institutional and private banking clients,' said Brad Heppner, chairman and chief executive officer of The Crossroads Group. ‘The shared vision and entrepreneurial spirit that have marked our discussions with Lehman Brothers point to a bright future.'

Crossroads Group has committed in excess of $2bn of capital on behalf of limited partner investors in more than 200 private equity funds and more than 5,200 privately held portfolio companies worldwide. Lehman's decision to acquire the firm reflects its desire to expand its private equity operations and to offer innovative private equity investment alternatives, such as securitised funds of funds, secondary investments and principal investment funds.

‘Lehman Brothers' acquisition of The Crossroads Group emphasises the firm's commitment to expanding its private equity and asset management franchise,' confirmed Michael Odrich, global head of Lehman Brothers' private equity division. ‘The Crossroads Group's investment advisory expertise, coupled with Lehman Brothers' extensive range of financial products and services, will allow the firm to continue to deliver the high level of performance and services our clients expect.

http://www.altassets.com/news/arc/2003/nz2014.php

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Brad K. Heppner is expected to testify regarding his relationships with Henry Paulson; James MacArthur; Adele Smith Simmons; Kamehameha Schools/Bishop Estate; June Jones; James Nicholson; David Farmer; Ron Rewald; Lamar Hunt; Barron Hilton; Hamilton McCubbin; Dee Jay Mailer; Robert F. Miller; Marsh & McLennan, Inc.; Mercer Consulting; Putnam; Federal Insurance Company (Chubb Group); XL Insurance; ACE, AIG; Royal SunAlliance Insurance; Wally Chin; Peter Lowe; Nathan Aipa; Louanne Kam; Colleen Wong; Lyn Anzai; William S. Richardson; Henry Peters; Gilbert Tam; Peter Savio; Robert Katz; Matt Tsukazaki; Richard Wong; Lokelani Lindsey; Jeff Stone; Kevin Showe; Ko Olina Partners; Seibu (Prince Hotels); Sukamto Sia; Bank of Honolulu; Bank of Hawaii; First Hawaiian Bank; Investor’s Equity; Wayne Metcalf; Rey Graulty; J.P. Schmidt; Colbert Matsumoto; St. Paul Travelers Insurance Company; Dee Jay Mailer; Investors Equity, Diane Plotts, Chris Hemmeter, Kaiser Permanente, The Global Fund, Ben Benson, Mark McConaghy, David Banmiller, Aloha Airlines, James Cribley, Robert Clements, Paul Bremer, Judge Robert Faris, Trinity Investment LLC, VMS Realty Partners, Jon Miho, Charles Sweeney, George Ruff, James Wriston, Robert Bruce Graham, Jr., The John T. and Catherine MacArthur Foundation, The Nature Conservancy, The Hawaii Chapter of The Nature Conservancy, Maurice Strong, Dieter Mueller-Dombois, WCI Communities, Rocco Sansone, and others to be named upon discovery.