Alexander C. Frank
About Alexander C. Frank
Alexander C. Frank is a Class III independent director (age 67) serving on AFCG’s board since 2020; he holds an MBA from the University of Michigan and a BA from Dartmouth College and is designated an “audit committee financial expert.” He chairs the Audit & Valuation Committee and the Nominating & Corporate Governance Committee, and the board has affirmed his independence under Nasdaq rules. Since July 2024, he has also served as lead independent director of Sunrise Realty Trust Inc. (“SUNS”). His career spans CFO/COO roles at Fifth Street Asset Management (IPO to sale to Oaktree, 2014–2017), CFO at Chilton Investment Company (2008–2011), and senior finance and operations leadership at Morgan Stanley (joined 1985).
Past Roles
| Organization | Role | Tenure | Committees/Impact |
|---|---|---|---|
| Fifth Street Asset Management | COO and CFO; later Board Member | CFO/COO from 2014–2017; board member since Sept 2017 | Led operations and financial control through IPO and sale to Oaktree; post-retirement board service |
| Chilton Investment Company LLC | Managing Director & Chief Financial Officer | Sept 2008–Mar 2011 | Global investment management CFO responsibilities |
| Morgan Stanley | Global head of institutional operations; global corporate controller; CFO of U.S. broker/dealer operations; global treasurer | Joined 1985; >22 years | Oversaw securities infrastructure services and internal/external financial controls |
| Arthur Andersen LLP | Audit and tax accounting | Early career (prior to 1985) | Foundation in audit and tax |
External Roles
| Organization | Role | Start | Notes |
|---|---|---|---|
| SUNS (Sunrise Realty Trust Inc.) | Lead Independent Director | July 2024 | Part of broader affiliated platform; AFCG Chair Leonard Tannenbaum serves as director/Executive Chairman at SUNS, creating cross-entity board interlocks |
Board Governance
- Committee leadership and membership: Frank chairs the Audit & Valuation Committee and the Nominating & Corporate Governance Committee; he is not listed on the Compensation Committee. The Audit Committee consists of Frank (Chair), Harrison, and Levy; the Compensation Committee consists of Harrison (Chair), Sudnow, and Levy.
- Financial expertise and independence: The board determined Frank is independent under Nasdaq rules and qualifies as an “audit committee financial expert”; all standing committees are comprised solely of independent directors.
- Meetings and attendance: In 2024, the Board met 10 times; Audit & Valuation 10; Compensation 1; Nominating & Corporate Governance 2. Each director attended at least 80% of the meetings of the Board and committees on which they served. Independent directors meet in regularly scheduled sessions without management. Frank attended the 2024 annual meeting.
- Self-evaluation and governance process: The Nominating & Corporate Governance Committee oversaw the board’s annual self-assessment in December 2024.
- Risk oversight and related-party controls: As Audit Chair, Frank’s committee monitors financial risk, legal/regulatory compliance, and reviews/approves related party transactions, including overseeing amounts payable to the Manager and making renewal recommendations on the Management Agreement.
- Outside board service limits: Corporate Governance Guidelines contemplate that no director may serve on more than four other public company boards unless the board determines such service would not impair effectiveness.
Fixed Compensation
| Year | Annual Director Retainer (Cash) | Audit Chair Retainer (Cash) | Nominating & Gov Chair Retainer (Cash) | Meeting Fees | Total Cash Fees |
|---|---|---|---|---|---|
| 2024 | $50,000 | $25,000 | $5,000 | None | $80,000 |
| 2022 | $50,000 | $25,000 | $5,000 | None | $80,000 |
Notes: Directors must attend at least 75% of all Board and committee meetings in a fiscal year to be eligible to receive director compensation.
Performance Compensation
| Year | Stock Awards (Grant-Date Fair Value) | Option Awards (Grant-Date Fair Value) | Equity Plan Context |
|---|---|---|---|
| 2024 | $14,999 | $0 | 2020 Stock Incentive Plan in place; grants may be annual/discretionary |
| 2022 | $0 | $7,313 | Options outstanding under 2020 plan; weighted-average exercise price $11.46 at 12/31/2024 (plan-wide) |
Vesting detail (unvested restricted stock):
- 1,282 restricted stock awards scheduled to vest January 2, 2025 (as of 12/31/2024).
- 1,792 shares of unvested restricted stock (as of March 28, 2025).
Other Directorships & Interlocks
| Company | Role | Interlock/Overlap |
|---|---|---|
| SUNS | Lead Independent Director (Frank) | AFCG Chair Leonard Tannenbaum is director/Executive Chairman at SUNS, indicating board-level interlocks across affiliated entities. |
Expertise & Qualifications
- Over 30 years in financial and operational infrastructure with senior roles at Morgan Stanley, Chilton Investment Company, and Fifth Street Asset Management, bringing deep finance, controls, capital markets, and operational efficiency expertise to AFCG’s board.
- MBA (University of Michigan) and BA (Dartmouth College); designated audit committee financial expert and financially literate under Nasdaq and SEC standards.
Equity Ownership
| As of Date | Total Beneficial Ownership (Shares) | % of Common Stock | Direct/Common | Options (Exercisable ≤60 days) | Unvested Restricted Stock |
|---|---|---|---|---|---|
| March 28, 2025 | 17,122 | <1% | 8,930 | 6,400 | 1,792 |
Policy constraints:
- Insider trading policy prohibits hedging transactions and pledging/margining Company securities by insiders (including directors).
Governance Assessment
- Strengths: Frank’s dual chair roles (Audit & Valuation; Nominating & Corporate Governance), financial expert designation, and affirmed independence support robust oversight of financial reporting, risk, and board effectiveness. Regular independent director sessions, strong attendance, and annual self-evaluations further signal governance discipline.
- Alignment: Cash director retainer plus chair fees total $80,000 in 2024, complemented by a modest annual stock grant ($14,999) and legacy options; his beneficial ownership is 17,122 shares (<1%), indicating limited direct equity exposure relative to total shares outstanding.
- Conflicts/Related-party exposure (key RED FLAGS to monitor): AFCG operates under a Management Agreement with a Manager beneficially owned by senior insiders; the Audit Committee (chaired by Frank) is explicitly tasked with oversight and approvals for related party transactions and Manager fees/renewals. A specific waiver in 2024 related to “Private Company A” involved a majority-owned subsidiary in which AFCG’s Chair (Mr. Tannenbaum) holds a 20% equity interest—heightening conflict risk and placing emphasis on independent committee rigor.
- Attendance and engagement: Each director attended at least 80% of 2024 meetings; Frank attended the 2024 annual shareholder meeting—supportive of engagement expectations and eligibility for compensation under the 75% policy.
Overall implication: Frank’s governance profile is strong on technical oversight and independence, and he is positioned to mitigate conflict risks through committee leadership; continued transparency and rigorous Audit Committee review of related-party arrangements remain critical to investor confidence.