Andrew M. Murstein
Encyclopedia
Andrew M. Murstein is the founder, president
, board member and largest shareholder
of Medallion Financial Corp., publicly traded on the Nasdaq
stock exchange
under the symbol TAXI that specializes in financing taxi cab fleets. 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.
to Alvin and Aileen Murstein. His grandfather, 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, and which now sell for $950,000 each.
Murstein’s introduction to the taxicab industry came early. His father, employed by his grandfather in his Queens
-based taxi business, used to take young Andrew along to the taxi garage, where he was assigned to collect rentals for using the medallion from taxi drivers at the ends of their shifts. Murstein soon learned not to believe the excuses – such as a baby being born in the back of the cab – drivers often used for returning their taxis late.
Andrew’s father and grandfather eventually owned more than 500 medallions. When they decided to sell some in the 1970s, no banks would provide the financing so that is when they got into the lending business. Banks would not lend to immigrants because they considered them too risky. They did not understand the character of the immigrant and were not aware of the value and security of a taxi medallion. Medallion has since lent over $3 billion to the taxi industry with zero losses, proving perhaps once again that banks do not know the taxi business.
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.
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 TAXI. The company, which owns and leases several hundred medallions and has financed the purchase of thousands more in Newark, Cambridge, Philadelphia, Chicago
, Boston
and New York
, 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.
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.
In November 2010, Medallion Financial Corp., as part of an investment group which includes Richard Petty
and Douglas G. Bergeron
, signed and closed sale on racing aseets of one of NASCAR
's great names, Richard Petty Motorsports.
Under Murstein’s leadership, Medallion today manages over $1 billion of investments and pays a dividend yield of 8%. The company has paid out over $150,000,000 in dividends to its shareholders since going public.
. Murstein, an avid sports fan, can frequently be seen in the front row at Madison Square Garden
and the New York Yankees
, often with other bold faced names.
President
A president is a leader of an organization, company, trade union, university, or country.Etymologically, a president is one who presides, who sits in leadership...
, board member and largest shareholder
Shareholder
A shareholder or stockholder is an individual or institution that legally owns one or more shares of stock in a public or private corporation. Shareholders own the stock, but not the corporation itself ....
of Medallion Financial Corp., publicly traded on the Nasdaq
NASDAQ
The NASDAQ Stock Market, also known as the NASDAQ, is an American stock exchange. "NASDAQ" originally stood for "National Association of Securities Dealers Automated Quotations". It is the second-largest stock exchange by market capitalization in the world, after the New York Stock Exchange. As of...
stock exchange
Stock exchange
A stock exchange is an entity that provides services for stock brokers and traders to trade stocks, bonds, and other securities. Stock exchanges also provide facilities for issue and redemption of securities and other financial instruments, and capital events including the payment of income and...
under the symbol TAXI that specializes in financing taxi cab fleets. He received a B.A. in economics, cum laude, from Tufts University
Tufts University
Tufts University is a private research university located in Medford/Somerville, near Boston, Massachusetts. It is organized into ten schools, including two undergraduate programs and eight graduate divisions, on four campuses in Massachusetts and on the eastern border of France...
and an M.B.A. in finance from New York University
New York University
New York University is a private, nonsectarian research university based in New York City. NYU's main campus is situated in the Greenwich Village section of Manhattan...
. He was named among Crain’s New York Business’ “40 Under 40”, and has been featured in numerous business publications.
Early life and Career
Andrew Mead Murstein was born in Roslyn, New YorkRoslyn, New York
Roslyn is a village in Nassau County, New York, on the North Shore of Long Island. As of the United States 2010 Census, the village population was 2,770...
to Alvin and Aileen Murstein. His grandfather, Leon Murstein, came to the United States from Argentina, became a New York cabdriver
Taxicabs of New York City
The taxicabs of New York City, with their distinctive yellow paint, are a widely recognized icon of the city. Taxicabs are operated by private companies and licensed by the New York City Taxi and Limousine Commission. The Commission is a New York City government agency that is best known for its...
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, and which now sell for $950,000 each.
Murstein’s introduction to the taxicab industry came early. His father, employed by his grandfather in his Queens
Queens
Queens is the easternmost of the five boroughs of New York City. The largest borough in area and the second-largest in population, it is coextensive with Queens County, an administrative division of New York state, in the United States....
-based taxi business, used to take young Andrew along to the taxi garage, where he was assigned to collect rentals for using the medallion from taxi drivers at the ends of their shifts. Murstein soon learned not to believe the excuses – such as a baby being born in the back of the cab – drivers often used for returning their taxis late.
Andrew’s father and grandfather eventually owned more than 500 medallions. When they decided to sell some in the 1970s, no banks would provide the financing so that is when they got into the lending business. Banks would not lend to immigrants because they considered them too risky. They did not understand the character of the immigrant and were not aware of the value and security of a taxi medallion. Medallion has since lent over $3 billion to the taxi industry with zero losses, proving perhaps once again that banks do not know the taxi business.
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.
Later life and career
Andrew Murstein, after completing his studies at Tufts UniversityTufts University
Tufts University is a private research university located in Medford/Somerville, near Boston, Massachusetts. It is organized into ten schools, including two undergraduate programs and eight graduate divisions, on four campuses in Massachusetts and on the eastern border of France...
and New York University
New York University
New York University is a private, nonsectarian research university based in New York City. NYU's main campus is situated in the Greenwich Village section of Manhattan...
, spent several years on Wall Street
Wall Street
Wall Street refers to the financial district of New York City, named after and centered on the eight-block-long street running from Broadway to South Street on the East River in Lower Manhattan. Over time, the term has become a metonym for the financial markets of the United States as a whole, or...
, including a stop at Salomon Brothers, where he learned the power of equity
Equity (finance)
In accounting and finance, equity is the residual claim or interest of the most junior class of investors in assets, after all liabilities are paid. If liability exceeds assets, negative equity exists...
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 TAXI. The company, which owns and leases several hundred medallions and has financed the purchase of thousands more in Newark, Cambridge, Philadelphia, Chicago
Chicago
Chicago is the largest city in the US state of Illinois. With nearly 2.7 million residents, it is the most populous city in the Midwestern United States and the third most populous in the US, after New York City and Los Angeles...
, Boston
Boston
Boston is the capital of and largest city in Massachusetts, and is one of the oldest cities in the United States. The largest city in New England, Boston is regarded as the unofficial "Capital of New England" for its economic and cultural impact on the entire New England region. The city proper had...
and New York
New York
New York is a state in the Northeastern region of the United States. It is the nation's third most populous state. New York is bordered by New Jersey and Pennsylvania to the south, and by Connecticut, Massachusetts and Vermont to the east...
, 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
Clear channel
A clear-channel station is an AM band Radio station in North America that has the highest protection from interference from other stations, particularly concerning night-time skywave propagation. Usually known as class A stations since 1982, they are occasionally still referred to by their former...
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.
In 2008 Murstein with former baseball star Hank Aaron and former New York Governor Mario Cuomo
Mario Cuomo
Mario Matthew Cuomo served as the 52nd Governor of New York from 1983 to 1994, and is the father of Andrew Cuomo, the current governor of New York.-Early life:...
, both Medallion Financial board members, and former football star and Congressman Jack Kemp
Jack Kemp
Jack French Kemp was an American politician and a collegiate and professional football player. A Republican, he served as Housing Secretary in the administration of President George H. W. Bush from 1989 to 1993, having previously served nine terms as a congressman for Western New York's 31st...
, 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
Chicago Cubs
The Chicago Cubs are a professional baseball team located in Chicago, Illinois. They are members of the Central Division of Major League Baseball's National League. They are one of two Major League clubs based in Chicago . The Cubs are also one of the two remaining charter members of the National...
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.
In November 2010, Medallion Financial Corp., as part of an investment group which includes Richard Petty
Richard Petty
Richard Lee Petty is a former NASCAR driver who raced in the Strictly Stock/Grand National Era and the NASCAR Winston Cup Series...
and Douglas G. Bergeron
Douglas G. Bergeron
Douglas Bergeron is CEO of VeriFone, a software and telecommunications development company in the United States. He previously served in a variety of executive management positions at SunGard Data Systems Inc., including President of SunGard Futures Systems and Group CEO of SunGard Brokerage...
, signed and closed sale on racing aseets of one of NASCAR
NASCAR
The National Association for Stock Car Auto Racing is a family-owned and -operated business venture that sanctions and governs multiple auto racing sports events. It was founded by Bill France Sr. in 1947–48. As of 2009, the CEO for the company is Brian France, grandson of the late Bill France Sr...
's great names, Richard Petty Motorsports.
Under Murstein’s leadership, Medallion today manages over $1 billion of investments and pays a dividend yield of 8%. The company has paid out over $150,000,000 in dividends to its shareholders since going public.
Personal
Murstein is married to Barbara Rudnick; they have two children, Kimberly and Matthew, and live in New York CityNew York City
New York is the most populous city in the United States and the center of the New York Metropolitan Area, one of the most populous metropolitan areas in the world. New York exerts a significant impact upon global commerce, finance, media, art, fashion, research, technology, education, and...
. Murstein, an avid sports fan, can frequently be seen in the front row at Madison Square Garden
Madison Square Garden
Madison Square Garden, often abbreviated as MSG and known colloquially as The Garden, is a multi-purpose indoor arena in the New York City borough of Manhattan and located at 8th Avenue, between 31st and 33rd Streets, situated on top of Pennsylvania Station.Opened on February 11, 1968, it is the...
and the New York Yankees
New York Yankees
The New York Yankees are a professional baseball team based in the The Bronx, New York. They compete in Major League Baseball in the American League's East Division...
, often with other bold faced names.