Building Tomorrow: An Exclusive Interview with President of Dudley Ventures, LLC, James D. Howard, Jr. (Part II of II)

Building Tomorrow is a curated series offering exclusive one-on-one discussions with prominent executives across the real estate spectrum. Through a refined lens, each installment unpacks trends, challenges and exemplary leadership strategies steering the trajectory of specific segments within the real estate landscape, offering a concise yet comprehensive understanding of market dynamics.

This interview features James D. Howard, Jr., President of Dudley Ventures, LLC. In part two, we shift our focus to delve deeper into James’ leadership philosophy and strategic vision for Dudley Ventures. We share further insights into management style, the company's growth trajectory, and perspectives on navigating challenges and seizing future opportunities in the evolving landscape of tax credits and renewable energy investments.

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Part II: Leadership and Strategic Vision

Boyden: You recently merged with Valley National Bank.  How is that going?

Howard: I’m loving it! We have dramatically grown the franchise with Valley National’s balance sheet, so I know they’re pleased. We have exceeded our goals, and I’ve been able to innovate at least one new product, which I’m extremely happy about.

Boyden: What excites you today?

Howard: Look at the alternative energy market and all the things it touches now – critical minerals, national defense, and a series of other areas. I just wish I were a younger man! Even when this earn-out with Valley National is concluded, I will continue to do a lot of asset-based financings across different asset classes: fuel cells, anaerobic digestion, biomass, and new technologies – things that not everybody can do.

Boyden: You started your career as a lawyer.  How was that different from running your own company?

Howard: The transition from being a partner in a law firm to running a company is a great chasm. As a partner in a law firm, there’s a small cadre of associates who work for you, but it’s not at all like growing a company with various verticals. That was a huge leap in management challenges. Like many things, there’s nothing like trial by fire.

Boyden: Can you describe your management style?

Howard: For me, it’s about governing by a series of core values for the company: integrity, excellence, urgency, and so forth. From the beginning, I’ve used those values to inform our team dynamics. It’s also important to have a product we believe in. For tax credits, that was easy.

Boyden: How do you build the team?

Howard: I focus on key attributes in the process. For example, if a candidate doesn’t have intellectual curiosity, they’re never going to make it at Dudley Ventures. Nobody comes into the tax credit business knowing everything about it, and the business changes constantly. So, if you enjoy learning, you will be engaged and do well.

Boyden: How did you figure that out?

Howard: I look at my own role models and mentors. Our leadership within Dudley Ventures is a group of strong, incredibly competent women. I think of my mother, who is 92 years old, still going strong, and reading the Wall Street Journal. I fashioned this team based on her example—someone who was extremely successful in her own right. She helped create the model where AT&T moved from leasing telephones to customers buying them in the New York metro area. She figured out how to get the new phones manufactured, traveled to Asia to source them, and brought them to stores, which was quite uncommon for women at the time. She even figured out how to buy our first house in New Jersey. All that creativity and intuition! The fun part is hiring people who have those same attributes.

Boyden: And your team has worked well together?

Howard: None of it has been easy, but our average tenure is over 10 years, so I feel people have come and stayed. It’s a great point of pride. With our merger, transitioning to a company with over 3,600 employees under Valley National from having around 30 people at Dudley on a stand-alone basis is not easy. Now, the challenge is ensuring our people have as much or more opportunity as they did when we were smaller. I've had one Dudley senior manager go through the bank’s executive training program – she’s a standout in the group. To me, that says a lot.

Boyden: Do you feel like women are well-represented in your industry?

Howard: I was looking around at a recent solar conference, and there were very few minorities or women. My colleagues and I were shocked. There’s still a huge shortage of talent, and these groups are significantly underrepresented.

Boyden: You have some very accomplished women at Dudley Ventures.

Howard: That started from the very beginning. My business partner, now retired, is a Hispanic woman. I was looking for operational efficiency and found women who were able to juggle many activities at once. They called me Admiral Chaos! I throw a lot of balls into the air, and others in the organization must keep it all in motion. Now, both our Chief Operating Officer and our Chief Financial Officer are women.

Boyden: Where do you see opportunities today?

Howard: I see enormous opportunity as our world continues to grow. Congress continues to support tax credits, constantly creating new ones. Rural legislators advocate for programs benefiting rural areas, including proposals for single-family homeownership credits. Community Development Financial Institutions (CDFIs) have also grown significantly. The Inflation Reduction Act has expanded industry scope unlike anything before, promising substantial growth. Additionally, the Environmental Protection Agency is set to award $27 billion to non-profit consortiums, which will significantly impact our industry and contribute to long-term climate change efforts.

Boyden: All these Millennials who want to work for mission-driven organizations …

Howard: We've always had a great analyst program, training individuals who go on to excel in various industries. One young man became regional president of a super-regional bank operation, while another became the lead NMTC coordinator at a prominent investment bank. I believe our business offers a unique balance of working for meaningful causes and financial success, providing individuals with the exposure to pursue their own passions. Today, there are opportunities to merge financial gain with a passion for driving change.

Boyden: Any advice for younger people?

Howard: Stay dedicated to honing your skills and seizing every opportunity that comes your way. With determination and a strong work ethic, you will carve out your path to achievement in any industry you choose to work in.

Boyden: Thanks for your time and insights

Howard: My pleasure!

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Executive Biography

James D. Howard, Jr. is the President of Dudley Ventures, LLC, an investment and advisory services firm specializing in congressionally-sanctioned tax credits and other tax advantaged investments. With a 20+ year track record, Dudley Ventures is a subsidiary of Valley National Bancorp (NASDAQ:VLY), one of the top 30 publicly-traded banks with over $61B in assets.

A native of The Bronx, New York, Mr. Howard earned degrees from The College of the Holy Cross in Worcester, Massachusetts, and Georgetown University Law Center.

Dudley Ventures was founded by Mr. Howard in 1996, has been an innovator in the field and manages over $2 billion in tax credit investments. Mr. Howard has authored numerous articles on tax credit investing is, a regular speaker at conferences, and is a Board Member of the New Markets Tax Credit Coalition.